Clark International Airport
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- IATA Code
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- Civil Aviation Complex
Clark Special Economic Zone
Clark Freeport Zone
- Luzon Island
- 3200m x 40m
3200m x 60m
- Airlines currently operating to this airport with scheduled services
- Asiana Airlines
Cebu Pacific Air
Clark International Airport, formally known as Diosdado Macapagal International Airport, is operated by the Clark International Airport Corporation. The airport, located in Luzon Province, services Angeles City and the metropolitan Manila city-region.
Location of Clark International Airport, Philippines
282 total articles
10 total articles
AirAsia is attempting to turn around its struggling operations in the Philippines by closing its base at Manila alternative airport Clark and focusing on expansion at Manila Ninoy Aquino International Airport using slots held by new partner Zest Air. AirAsia is also seeking approval for Zest to adopt the AirAsia brand, giving the LCC group two carriers in the Philippine market but a single product.
AirAsia has struggled in the Philippine market since it launched Philippines AirAsia in Mar-2012. The new affiliate’s base at Clark has been highly unprofitable with limited growth opportunities.
Shifting focus to Manila significantly improves AirAsia Group’s outlook in the Philippines. But AirAsia will still need to overcome intense competition from market leader Cebu Pacific, which has a much stronger position at Manila, as well as the Philippine Airlines Group and Tigerair Philippines.
Beijing Airport remains on the brink of becoming the world's largest airport, Dubai International Airport is fastest growing, rising to fifth place worldwide, while Madrid and Rome Fiumicino languish.
It is interesting to compare IATA’s recently revised global traffic demand projections for 2013 with those airports that offered the greatest amount of seat capacity in 2012 and 1H2013 (to end June) and with those airports that are preparing for traffic increases by constructing additional infrastructure.
IATA upgraded its global outlook for the airline industry at the beginning of Jun-2013.
It now predicts revenues for the year will hit USD711 billion, with airline industry profits to rise from USD10.6 billion to USD12.7 billion with a net margin of 1.8% and a return on invested capital of 4.8%.
This is the second part of a series of articles looking at the outlook for Philippine carriers. The first part, published on 19-Mar-2013, analysed the strong position of market leader Cebu Pacific.
Part 2 looks at the recent tie up between AirAsia Philippines and Zest Air, which along with new Tiger Airways affiliate SEAir are looking to improve their relatively weak positioning in the highly competitive Philippine market. Part 3 will look at flag carrier Philippine Airlines and the recent rebranding and strategy shift at PAL Express, previously known as AirPhil Express.
AirAsia Philippines and privately owned Zest Air unveiled a strategic partnership on 11-Mar-2013 which included an equity swap, with AirAsia Philippines taking a 49% stake in Zest in exchange for a 15% stake in AirAsia Philippines. The partnership is expected to result in the AirAsia brand entering the Manila market, using the slots and traffic rights held by Zest. AirAsia currently only serves Manila's alternative airport, Clark.
Tiger Airways enters 2013 more upbeat after ending a string of seven consecutive quarters of losses and returning to profitability in the last three months of 2012. But the Singapore-based low-cost carrier group still faces a challenging 2013 as it tries to reverse the losses at its subsidiaries or affiliates in Australia, Indonesia and the Philippines.
Tiger’s original Singapore operation has recorded an encouraging improvement to its bottom line after going through a rough patch in late 2011 and early 2012, when over-capacity led to a decline in yields and load factors. The outlook for Tiger Singapore remains relatively bright, particularly as the carrier starts to see benefits from its new connection product.
But LCC competition in Singapore is intense, making it challenging for Tiger and rival Jetstar Asia to post high profit margins. Market conditions in Tiger’s other three home markets are even more challenging, with profits in the short-term unlikely although the group remains optimistic about its long-term prospects in Australia, Indonesia and the Philippines.
The Philippines Government has begun studying the possible of expansion of Diosdado Macapagal International Airport (now better known as Clark International Airport) beyond the already planned PHP12 billion (USD286 million) new passenger terminal, which was initially intended for use by low-cost carriers. As congestion grows at Manila Ninoy Aquino International Airport, it looks as if the future role for Clark might now be as a ‘legacy airport’.
Tiger Airways is trying to move forward after surviving the most challenging chapter in its six-year history, capped off recently by a further shake-up in Tiger’s executive team, with founding CEO Tony Davis leaving the group, and a rights issue. Tiger's position going forward is significantly improved, but it still has several challenges to overcome if it has any chances of catching up with rival LCC groups AirAsia and Jetstar, which have successfully established pan-Asian footprints while similar efforts at Tiger have so far failed.
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