BIRD FLU IN HK: PAL FEARS BIRD FLU SCARE COULD HURT RECOVERY BID
MANILA, NOVEMBER 22, 2010 (TRIBUNE) Flag-carrier Philippine Airlines (PAL) warned that a possible resurgence of bird flu and a rise in fuel prices could hurt its fledgling recovery from economic woes.
The warning comes as PAL is dealing with the fallout of a bloody hostage-taking in Manila in August that left eight Hong Kong tourists dead.
Despite the hostage incident, PAL said it posted "modest gains" in its $28.2-million net profit posted from July to September, something it attributed to cost reduction measures.
The airline said revenues hit $399.5 million in the July-September, 2010 period, up 33 percent from the same period in 2009.
"The global airline industry remains vulnerable to volatile market conditions. Take fuel... if the upward trend continues, it could wipe out all our recent gains," PAL president Jaime Bautista said.
"PAL is also closely watching the recent re-emergence of the AH1N1 (bird flu) virus in Hong Kong," the airline said in a statement.
The country has been on alert for any instances of bird flu in the country after a new case was recorded in Hong Kong last week, the first since 2003.
"The avian flu can dampen demand at a time when the Philippines has yet to fully recover from the stigma of the recent hostage crisis involving Hong Kong nationals and the negative travel advisory against the Philippines," it added.
Many Hong Kong and Chinese travelers canceled trips to the Philippines after a disgraced Filipino policeman took a bus-load of Hong Kong tourists hostage in August.
After a mistake-riddled rescue attempt by Manila police, the hostage-taker was shot dead but eight tourists were killed and seven others were injured, sparking outrage and travel warnings in Hong Kong and China.
Bautista explained that while there was a huge reduction in maintenance expenses by 36 percent as a result of the company's cost savings initiatives, fuel costs have gone up as a result of higher jet fuel prices from an average of $79.06 per barrel for the quarter ended September 2009 to an average of $97.73 per barrel for the same quarter period in 2010. Fuel comprises approximately 40 percent of PAL's total expenses.
In the same Securities and Exchange Commission report, PAL reported increases in both passenger (26 percent) and cargo (57 percent) revenues from its international operations, with an improvement as well in the yields generated from passenger seat offerings.
Total expenses for the same quarter period amounted to $371.2 million, a seven percent increase from the same period total of $346.0 million last year.
To remain viable, Bautista said the flag carrier will focus on continuing its cost control initiatives as the passenger and cargo markets as well as fuel and maintenance costs remain very volatile. AFP
DENR chief wants stronger measures against bird flu By Michael Punongbayan (The Philippine Star) Updated November 22, 2010 12:00 AM
MANILA, Philippines - Environment and Natural Resources Secretary Ramon Paje yesterday ordered all officials of the department to double their efforts to prevent the possible transmission of bird flu in the country.
The directive came in the wake of reports of a bird flu outbreak in Hong Kong, where the alert level for the disease has been raised to "serious," which means that there is a "high risk" of humans being infected with the potentially fatal disease.
"I have instructed all regional executive directors to conduct a closer monitoring and regular reporting of any incidence of bird flu in their areas of jurisdiction, and to coordinate closely with other government agencies and groups such as bird watching groups and livestock or poultry associations if necessary," Paje said.
Department of Environment and Natural Resources (DENR) personnel assigned at entry points such as airports and seaports, together with their counterparts from the customs and law enforcement agencies, were told to keep a tight watch over pet and cage birds being transported.
"We will closely monitor the reported re-emergence of bird flu in Hong Kong, and if warranted we will ban the importation of all exotic birds especially those coming from countries with reported incidences of the avian flu, and strengthen enforcement of laws on the illegal wildlife trade," Paje said.
He added that the DENR's Protected Areas and Wildlife Bureau would soon be conducting surveillance of migratory bird sites with assistance from bird watching clubs.
The Philippines is an integral part of the East Asian Flyway, and local wetlands provide stopover sites for wild birds during their north-south migration.
Paje said he is also enjoining the public to support government efforts in preventing the transmission of avian flu.
"We urge everyone to exercise extreme caution in handling fowl, as well as in cooking and eating poultry and poultry products so that we can maintain the country's clean slate with regard to human cases of the disease," he said.
The Philippines remains free from bird flu to date, Paje said.
He said the country is not taking any chances, adding that its preparedness should be strengthened and opportunities for the virus to spread through increased information dissemination and improved warning systems should be reduced.
While avian flu commonly infects birds, cases of bird-to-human transmission of the disease have already been reported.
Health authorities worldwide warned that the disease could mutate into a lethal form that could easily be transmitted among humans.
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