• Widen reach with integration, aero industry told


    “THE future is in the skies.”

    This is what William Hotchkiss 3rd, director general of the Civil Aviation Authority of the Philippines (CAAP), said in his opening speech during the Aerospace Industries Forum on Monday.

    “May I enjoin all of you then to take this first small step in unison with CAAP in evolving the Philippine aerospace industries so that all Filipinos may share the dream that the future is in the skies,” Hotchkiss said.

    The aviation official urged members of the domestic aerospace industry to explore opportunities presented by the Association of Southeast Asian Nations (Asean) Economic Community.

    “The economic integration among the 10 Asean member states, which commences this year, offers enormous opportunities in the civil aviation sector which your companies can explore to widen your business reach and operation to reap the lucrative prospect of increased profitability,” he said.

    “We should embrace rather than shun this phenomenon and benefit from it by understanding how to be competitive in these open markets,” Hotchkiss added.

    The industry official explained that the dynamic environment of regional and global civil aviation has expanded its conventional scope to include the whole spectrum of operations and services that pertain to aviation.

    “Traditionally perceived as being technical and only for pilots, civil aviation is now seen as inclusive of all other functions that puts an aircraft to flight and from a business perspective as well. This recognition opens numerous possibilities that can only redound to the growth and development of civil aviation in general,” Hotchkiss said.

    He added, “For the past years, CAAP has interacted and served four groups of stakeholders, namely, the commercial airlines, general aviation, aviation/ flying schools, and maintenance organizations. Their operational and business viabilities have been our focus in discharging our regulatory mandate. Today, we shall add a fifth stakeholder for whose needs CAAP aims to be conscientious and responsive. By way of this forum, we confer CAAP’s recognition to the aerospace industries as its stakeholder,” the aviation official said.

    According to the Aerospace Industries Association of the Philippines (AIAP), in an average year, the airline industry carries 3 billion people — the equivalent of 44 percent of the world population — plus 50 million tonnes of cargo, and supports 56.6 million jobs.

    In the growing global market, AIAP said new airplane deliveries by region from 2014 to 2033 will be as follows: Asia Pacific would get a big chunk with 13,460 airplanes; followed by Europe with 7,450; North America, 7,550; the Middle East, 2,950; Latin America, 2,950; Commonwealth of Independent States (CIS) 1,330; and Africa, 1,080.

    They will have a market value of $2.02 trillion for Asia Pacific, followed by Europe with $1.04 trillion, North America $870 billion, Middle East $640 billion, Latin America $340 billion, CIS $150 billion and Africa with $140 billion.

    Based on data from the Philippine Statistics Authority and the Department of Trade and Industry-Export Management Bureau, the Philippines’ total exports of aerospace parts and components amounted to about $226.36 million in 2014 from $191.65 million in 2013.

    AIAP was formed on September 5, 2012 and started with only five member companies. In 2015 it has grown to 45 member-companies consisting of manufacturers, subcontractors, traders, service providers and government entities.

    According to Hotchkiss, the significant presence of the aerospace industries and their enthusiasm to be part of the evolution of Philippine civil aviation, clearly demonstrated during the National ASAM Convention and the 2nd Philippine Aviation Safety and Good Corporate Governance Symposium last year, are worthy of nurturing and support
    “CAAP shares with you a full appreciation of these goals that it has embodied in its key thrusts which constitutes its Flight Plan 2020. Your insights and views are valuable inputs that will guide our rule-making and enforcement functions,” Hotchkiss said.


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