Pasay City, Philippines—The Philippines is poised to become a leading regional player in the aviation sector by 2028, and government and key players are gearing to prime the industry through public sector involvement and increased investments, especially in the areas of infrastructure, digitalization, safety, and sustainability.

To chart a comprehensive path towards the industry’s long-term success and ensure collaboration among industry leaders, the European Chamber of Commerce of the Philippines (ECCP) and the Asian Business Aviation Association (AsBAA), together with the Department of Transportation (DOTr), launched the 2024 Aviation Summit on October 3-4. The annual event gathered government officials, foreign diplomats, and key stakeholders of the aviation industry to dissect pressing issues and challenges, present its outlook for the year ahead, and discuss sustainable solutions for both the private and public sectors to undertake.

In his opening remarks, ECCP President Paulo Duarte highlighted the need to bolster coordinated efforts now that the sector is ripe for growth, especially following gains since last year’s summit.

“The country is getting 7.7 million visitors yearly, and the demand for robust safety systems all requires urgent attention,” said Duarte. "But there is a silver lining. The strengths of this summit lie in the partnerships we have forged between the public and the private sectors, the local and international stakeholders, as well as the innovators and policymakers.”

Hon. Frederick Go, Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Office of the President, also noted the event’s goal to strengthen the Aviation Sector as a driver of economic growth as “timely and significant as the industry serves as a critical engine for the economy that fuels trade and investments, tourism, regional and national development.”

“Aviation goes beyond simply transporting people. It transports our essential goods and services, facilitates logistics, connects markets, and creates business opportunities. It generates jobs, boosts tourism and infrastructure, links our regions, and integrates our nation to the global economy,” said Secretary Go.

On aviation’s impact on EU-PH relations in particular, Delegation of the European Union to the Philippines Ambassador, H. E. Massimo Santoro stated that closer economic links between the Philippines and the European Union will enhance transfer connectivity, particularly in helping European firms find the right contributions to facilitate Philippine economic growth. Moreover, with the resumption of talks on the Free Trade Agreements, Ambassador Santoro said that the agreement will complement the EU-ASEAN Comprehensive Air Transport Agreement, which will connect 1.1 billion people in 37 countries.

An extensive transformation

In his keynote address, Philippine Transport Secretary Jaime J. Bautista emphasized the Department of Transportation’s commitment to elevating the country’s four transport sectors to global standards, with a primary focus on aviation and airport development. Central to this initiative is the agency's plan to upgrade and modernize the county’s major airports, with the success of the Ninoy Aquino International Airport (NAIA) through a public-private partnership agreement as a prime example.

Through similar Public-Private Partnership (PPP) projects in airports across the country, the Secretary aims for the Philippines to “finally catch up on the significant underinvestment in airport development over the years.” The extensive agenda also entails an increase in airport capacity to almost double from 35 million passengers to 62 million, an uptick in the air traffic movement from 14 movements per hour to 48, and airport rehabilitation to generate more than 50,000 jobs due to increased tourism arrivals.

Moreover, Secretary Bautista also cited other initiatives beyond modernizing and upgrading airports, such as the completion of an upgrade of the country’s air navigation management systems and surveys by the Civil Aviation Authority of the Philippines. He also added that further upgrades and improvements in Communications, Navigation, Surveillance / Air Traffic Management (CNS ATM) systems will be undertaken.

Meanwhile, according to the Department of Transportation Undersecretary for Aviation and Airports Hon. Roberto C.O. Lim, more airport PPP projects are underway, with three already awarded in 2024 which include NAIA, Laguindingan, and Bohol-Panglao, and with three additional airport PPP projects to be awarded in 2025.

An Outlook on Philippine Aviation

On the state of the Global, Regional, and Philippine Aviation Industry, Area Manager for Southeast Asia International Air Transport Association (IATA) Yuli Thompson cited data that the 2024 global aviation sector has recovered and passed 2019 levels and is anticipated to reach 30.5 billion USD dollars in terms of profit. However, the recovery of regional aviation is behind other regions at only 3% above 2019 levels, with Vietnam being the only country to have recovered both domestic and international traffic.

As for local aviation, Thompson notes the current forecast of the Philippines recovering by 2025, which is delayed from the original 2024 forecast due to the slow recovery of international travel. She adds, notably, that the Asia Pacific region is expected to have the highest growth and hold almost half of the world’s traffic in 20 years.

In order to capitalize on the forecasted passenger growth, Thompson stressed that airports and related infrastructure have to be in place to avoid congestion, which could ultimately affect customer experience.

On the legislative side, Senator Grace Poe urged for the establishment of a national transport policy and plan that will guide the development of a safe, efficient, affordable, intermodal, and sustainable transport system.

“[The system] should aim to service every corner of the vast archipelago, and connect it seamlessly with the rest of the globe,” said Senator Poe.

Senator Poe also filed Senate Bill 1073, or the proposed creation of the Philippine Airports Authority, a separate entity that would focus solely on modernizing all airport facilities in order to provide safe, efficient, and reliable services for domestic and international air travel.

From the airline industry, Cebu Pacific Air Chief Executive Officer Mike Szücs highlighted the need for balanced infrastructure investment across the Philippines to support sustainable economic growth and regional development.

“The Philippines continues to have one of the biggest economic growth rates in Southeast Asia, but it should not solely be about Manila,” said Szucs. “The rest of the country needs attention too, and it is great to see that domestic tourism has become such a big part of stimulating economic growth, building confidence in addressing infrastructure hurdles, and sustaining investment on infrastructure.”

"We must do all we can to support agencies and institutions tasked with boosting the Philippine aviation industry," he added.

Future-proofing PH Aviation

On addressing the talent gap in the aviation industry, Cebu Pacific Air Chief Human Resources Officer Felix Lopez noted that local talent lags in comparison to global employment which has rebounded to 95% of pre-COVID levels. According to Lopez, industries play a crucial role in influencing and improving academic training in the aviation industry, such as introducing skills-based incentives and effective pipelining strategies to retain locals.

“If private companies and academes align, it will be much easier to tap interns, cadets, and pilots to upskill and be involved in the growth of the Philippine aviation industry. It is imperative to democratize entry training and education for current and future Filipino pilots,” said Lopez.

Dr. Joel Joseph Marciano, Jr., Director General of the Philippine Space Agency (PhilSA), also added that issues in the curriculum can also be addressed by incorporating fundamental programs in the basic education sector.

“The aviation industry needs to support faculty development as academic institutions, such as the PhilSCA, can address or instigate industry developments. This synergy can produce better pilots, technicians, and technologies to address impending industry gaps,” said Dr. Marciano. “We need to intensify these training sessions and expose aviation students early. It should also be reinforced with recalibrated hiring procedures.”

Meanwhile, on safeguarding local aviation, Hon. Joselito B. Ramos, Assistant Secretary for Logistics, Acquisitions, and Self-Reliant Defense Posture of the Department of National Defense, emphasized that co-developing surveillance technologies with other government agencies is vital.

“These can optimize operations in defense and security, such as in readily assisting the CAAP when their system is faulty or down and in boosting the capacity of military and civilian aircrafts,” adds Ramos.

A Greener Aviation Sector

In line with the global aviation industry's commitment to achieving net-zero carbon emissions by 2050, experts also discussed the need for innovative technologies and sustainable practices to drive decarbonization.

Ditmar Gorges, Managing Partner at SAF Inc., highlighted the Philippines’ potential as a future global production hub for Sustainable Aviation Fuel (SAF), citing its abundant biomass, renewable energy sources, and available land.

“Producing sustainable aviation fuel from plant materials, municipal waste, and agricultural residues will shift the value chain from centralized to decentralized production, offering an opportunity to empower rural communities in the Philippines.”

On the side of aircraft manufacturers, Anand Stanley, President at Airbus Asia Pacific, adds that SAF remains the most promising environmentally and economically. “Airbus Asia Pacific has been constantly working on decarbonization over the last 50 years. We have successfully reduced carbon footprint in our operations by 50%,” said Stanley.

The Aviation Summit is one of the Chamber’s biggest flagship advocacy events organized with its Aviation Committee, and currently stands as the largest gathering of the aviation industry in the country.

The event featured many distinguished speakers, including SAPIEA Sec. Frederick D. Go; Senator Grace Poe, Chairperson of the Senate Committee on Public Services; Hon. Jaime Bautista, Secretary of the Department of Transportation; Hon. Roberto Lim, Undersecretary of the Department of Transportation; Dr. Joel Joseph Marciano, Director General of the Philippine Space Agency; Hon. Mary Jean Pacheco, Undersecretary of the Department of Trade and Industry E-Commerce Group; Executive Director Cynthia Hernandez of the Public-Private Partnership Center; Mr. Mike Szücs of Cebu Pacific Air; Mr. Benoît de Saint-Exupéry of AIRBUS; Ms. Yuli Thompson of the International Air Transport Association; Mr. Kurt Edwards of the International Business Aviation Council; and General Manager Angelito Alvarez of New NAIA Infrastructure Corp., among others.

The Summit was organized in partnership with the Department of Transportation; Bases Conversion and Development Authority; British Embassy Manila and the German Embassy Manila; Co-Presenters Cebu Pacific Air and AIRBUS; Platinum Partner Philippine Airlines; Bronze Partners Aviation Concepts Technical Services Inc., SITA, and Rotary Fixed Wing Aviation Incorporated; Networking Partners Ocampo & Manalo Law Firm, Lufthansa Lufthansa Technik AG, MedAire, Metrojet, and Wingbox Aviation Inc.; Conference Kit Partner Daher Industrial Services; Advocacy Partner Secure Connections; Session Partner WANZL Harle Hospitality; Booth Partner Berthaphil; Minor Prize Partner AirAsia; Table Top Partners Universal Aviation Philippines, Federal Land, Filinvest; Beverage Partners Le Cellier and Stella Artois; and Media Partners Aviation Updates Philippines, AvGeek Philippines, PortCalls, and Travel and Tour World.

More than 300 participants, including representatives from government officials as well as experts and leaders hailing from European and Asian aviation industry businesses and organizations, took part in the Aviation Summit held on 2-3 October 2024 at the Marriott Hotel Manila in Pasay City. The event is one of the biggest dialogues of the Philippine aviation sector.