Fixing airport experience

DEMAND AND SUPPLY By Boo Chanco (The Philippine Star) | Updated July 11, 2016 – 12:00am

I have been traveling quite a bit lately so I speak out of pretty current experience. Our national gateway airport is undoubtedly a national shame. Hosting beauty pageants here to attract visitors will not change the fact that our country’s front door is an embarrassment.

I met twice with Transportation Secretary Art Tugade before the new administration took office and I am glad that he agrees drastic change is called for. Two things are on top of his “to do” list: cleaning the toilets and dealing with the tanim bala scam.

I am glad that he has acted on both in the manner he told us he would. He asked the local airlines to take responsibility for assuring clean toilets in their terminals at no cost to the government. I am glad the airlines agreed out of a sense of patriotism.

Actually, the interest of the airline business is more basic. Agreeing to Sec. Tugade’s request is good for customer relations.

It is no longer a question of who is responsible for terminal housekeeping. Of course government is responsible for assuring clean toilets and a cheerful atmosphere in the terminals. That’s why we are paying a terminal fee. But we all know government, at least the last administration, is incapable of doing that.

It isn’t as if Sec. Tugade is giving up even before he tries. He must still figure out what the staff he inherited is capable of doing. In the meantime, there are things that have to be done at once. Since passenger safety and comfort is also a concern of the airlines, a partnership should work.

I recall that then DOTC Sec. Mar Roxas asked the hotels to take one toilet each to refurbish to their high standards. Later on NAIA management itself spent good money to refurbish toilets. For a while some of the toilets did look and smell good. But airport management failed to follow up with good maintenance.

That’s the bad news. The Aquino era NAIA management does not understand the value of maintenance. P-Noy’s favorite, General Honrado, admitted in his farewell speech that the last major power blackout taught them the value of good maintenance. The blackout, he said, was a blessing in disguise. Such idiocy!

Actually, there is nothing new with having the airlines pick up the responsibility for maintaining terminal facilities. It is unfair, considering that they are paying rent to cover those things.

San Miguel’s Ramon Ang once related to us that when he was president and CEO of Philippine Airlines, he had the airline pick up the cost and responsibility of replacing major components of the power supply system. He also picked up the cost of additional air conditioning and maintaining existing ones. He did all that with no expectation of being reimbursed by government.

The ever pragmatic Mr. Ang explained that he had no choice because otherwise, it will be his airline passengers who will suffer. I think he also had some other physical improvements made on some airside facilities too.

This is why I am strongly in favor of privatizing the operation and maintenance of our major airports. I thought this was going to happen in a big way when DOTC announced they were ready to bid out the O and M of five domestic airports. But DOTC cancelled the bidding at the last minute.

The other thing that needs to be privatized is air traffic control. This very vital function is facing serious challenges as air travel demand outpaces the ability of the existing system to expand capacity. We are losing trained air traffic controllers and the ones we have are overworked and underpaid. We could be facing a disaster in the making due to physical fatigue and low morale.

It is a question of pay and benefits. Government pay is dismal to begin with and our air traffic controllers have a skill that has a good international price tag. Of course our controllers will be pirated by foreign entities and they owe it to their families to take a job that earns many times more than what CAAP can pay them.

When I was in Toronto in connection with the Manila-Toronto inaugural flight of Philippine Airlines some years ago, airport authorities there told me they have privatized airport operations including air traffic control. Indeed, there are companies now that specialize in providing air traffic control services to airports all over the world.

Hiring such a specialized company means we will not be a hostage of the pay structure of our government. We will also not have to worry if we do not have enough locals with the necessary skills because the company is obligated to hire elsewhere to meet the contractual obligation.

An article in philippineflightnetwork.com agrees and offers an alternative way. “The best way to address this issue is to remove the Air Traffic Control system out of the hands of government…”

The article suggests a system where “fees for air traffic control services would be paid directly by customers to a new self-sustaining Air Traffic Control organization. This would enable revenue to grow at a consistent pace with increased flight activity.

“In addition, commercialization would also address management problems such as the labor shortage, enabling a new organization to attract the best skilled labor necessary to adequately satisfy the demands of the industry.”

The article went on to cite the example of Canada I mentioned earlier. “Canada was one of the first countries to pioneer the commercialization of the ATC system. In 1996, a private, not for profit ATC corporation was set up by the Canadian government called Nav Canada.

“The system has earned worldwide praise for its sound finances, solid management, and investment in new technologies, which are all self-supporting and funded by charges levied on aviation users.

“Overall, studies have determined that the commercialization of air traffic control has typically resulted in improvements to service quality, better management, and a reduction in cost. More importantly, air safety has remained the same in countries that have pursued such reforms.”

The website called the Philippine system of government management and ownership of airports antiquated. “As the world shifts to operating airports as a for-profit enterprise as opposed to a government subsidized service, the Philippines must adopt a similar paradigm that is more consistent in fostering a dynamic and competitive airline industry.”

In fact, we are seeing a more dynamic and competitive regime taking place in Mactan Cebu. The privately owned airport management consortium has not only improved overall airport services, it is also taking time and resources selling the airport to airlines all over the world.

I realize Sec. Tugade has to do many things all at the same time. But he has promised dramatic change as quickly as possible. Perhaps, immediately pursuing the PPP bidding of the O and M of the airports in Davao, Bacolod, Iloilo, Bohol and Cagayan de Oro is a good place to start. It is a deliverable short term project ready for implementation.

Then Tugade must address the air traffic control situation before something tragic happens. He has also used common sense in dealing with tanim bala. Removing that first layer of airport inspection should come next.

The long term solutions like a new international gateway for Metro Manila are also important. But showing some movement in the urgent stuff mentioned in this column will show the Duterte administration knows its priorities and has the political will to deliver.

Source: www.philstar.com/business