WESTERN MINDANAO STATE UNIVERSTY

Normal Road., Baliwasan, Zamboanga

City
College of Liberal Arts
BS Accountancy
BUS 102
FUNDAMENTALS OF MARKETING

CASELET

Clarice Anne R. Baclas

 Caselet

PROBLEM:
Traveling from Manila to Boracay entails either using a smaller
commercial plane that can land in Caticlan or using a bigger plane that lands
in Kalibo, which is a good two-hour land transportation trip to Caticlan. From
Caticlan, a short five minute boat trip is still needed to reach Boracay Island.

In April 2010, there was a report that a consortium of investors

planned and offered to extend the runway of Caticlan airport to
accommodate bigger planes. If this pushed through, there would be no more
reason why tourists or local visitors going to Boracay would want to use the
Kalibo airport. Investigate how Kalibo can still be promoted as a major part of
an airlines distribution route despite the presence of the new Caticlan
airport.

SOLUTION:
Unusually, the increasingly popular island resort of Boracay in the
Philippines is served by two airports, Caticlan Godofredo P Ramos Airport and
Kalibo Airport - neither of which is situated on the island itself. One remains
wholly in the public sector and has a range of international flights, but is
constrained at times. The other is domestic only for now; it has a private
sector interest from two leading Philippine companies, and investment there
is on a larger scale than at the other one.

Convenience is clearly a factor in gaining access to a tourist island

paradise but so is the ability to handle international and jet services. In this
manner the two airports compete with each other. But there are
developments in hand that may give one of them an advantage over the
other. Economic growth in the Philippines has accelerated, averaging 6.0%
per year from 2011-2015, and competitiveness rankings have improved.

This report examines both airports by way of several sets of metrics,

looks at the (local) airports that can be compared with them, and at their
construction activities and ownership the latter within the context of the
Philippine governments search for foreign private sector partners to help
develop its airports.

Boracay is a small island in the Philippines located approximately 315

km (196 miles) south of the capital, Manila, and 2 km off the northwest tip of
Panay Island in the Western Visayas region. Boracay has emerged to become
one of the worlds top high-end vacation destinations, offering high quality
beaches, relaxation and nightlife. Boracay is served by two airports in Aklan
the Kalibo (international) Airport and Godofredo P Ramos Airport, also
known as the Caticlan Airport. This report concerns both the airports.

The tables below summarise the two Boracay airports route network, and the
table below that compares them with the peer group in network terms.

Caticlan Godofredo P Ramos

Kalibo Airport Network Summary (at
Airport Network Summary (at 9-
09-May-2016)
May-2016)

Total Airlines 7 Total Airlines 3

Domestic only 3
Domestic only 3

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International 6 International 0

Total nonstop passenger Total nonstop passenger

9 destinations 2
destinations

Domestic 2 Domestic 2

Africa 0 Africa 0

Asia Pacific 7 Asia Pacific 0

Europe 0 Europe 0

Latin America 0 Latin America 0

Middle East 0 Middle East 0

North America 0 North America 0

Total Total nonstop freight

0 destinations 0
nonstop freight destinations

Domestic 0 Domestic 0

Africa 0 Africa 0

Asia Pacific 0 Asia Pacific 0

Europe 0 Europe 0

Latin America 0 Latin America 0

Middle East 0 Middle East 0

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North America 0 North America 0

Seat capacity increases at Kalibo but not at Caticlan

While seat capacity grew at Kalibo Airport from 2012 to 2014 it has been
slowly falling at Caticlan Airport.

Kalibo Airport seat capacity, year-on-year system-wide

The first telling difference between the two airports is that while over a
quarter of Kalibos capacity is international, Caticlans is purely domestic.
Thats why Kalibo Airport can still be highly promoted even if theres the new
bigger Caticlan airport.

Kalibo Airport also has a wider range of airlines operating, led by the
low cost airlines Philippines Air Asia and Cebu Pacific. Philippine Airlines (PAL
Group) has approximately one quarter of the capacity. (Note: PAL Express,
the often renamed subsidiary of Philippine Airlines, formerly Air Philippines or
Airphil Express, and now a full service carrier within a low-cost model,
operates almost all of the PAL Group flights at Kalibo and all PAL Group flights
at Caticlan.

Summary & Conclusions

Boracay has emerged to become one of the worlds top high-end

vacation destinations and is served, incongruously, by two airports,
neither of which is actually on the island. It can appear somewhat
unusual that there are two airports serving this popular resort island,
but demand has grown to the point where only one of them would be
unsuitable. Caticlan is the closer airport to Boracay but currently can
only handle turboprops.

The international Kalibo Airport is 70km away and it takes

approximately two hours to travel to Boracay from Kalibo Airport,
compared with a short ferry ride from Caticlan Airport. Kalibo is also
capacity-constrained at times.

Despite expansion at Kalibo it is the expansion at Caticlan, and its

adoption of international services, that will determine the future,
prompted by the private sector concessionaire.

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The Philippines economy has been relatively resilient to global

economic shocks. Tourism to the Philippines generally is growing at a
fast rate.

There is a heavy and growing reliance on the private sector, under

various public-private-partnership programmes, including in the
airports sector. One of the two airports serving Boracay is already
concessioned out.

Compared with a peer group the Kalibo airport has a higher ranking
than the Iloilo and Bacolod airports, across all measures.

Seat capacity has been increasing at Kalibo (although it fell in 2015)

but not at Caticlan, where there has been a small but consistent
decline over four years.

Kalibo has the wider range of airlines and regional routes to both
Southeast Asia and Northeast Asia.

Kalibo Airport scores highly on local Asia Pacific services more so than
most of its peer group, in terms of nonstop connectivity.

As with the peer group, both airports have a high ratio of low cost
airline services. There are more in the case of Kalibo Airport than at
Caticlan Airport.

There are no airline alliances in play at either airport.

Only Kalibo Airport offers any business class seating presently and it is
a small percentage, which is a possible drawback in marketing Boracay.

There is no cargo activity at Caticlan owing to payload limitations; it is

centred on Kalibo and because it is all belly hold split between
Southeast Asia and Northeast Asia.

Co-ordination of arriving and departing passengers at Kalibo Airport (in

particular) is haphazard at times of day. But this provides
opportunities to direct more international traffic into gaps.

Construction activities are under way at both airports. The more

significant development is at Caticlan, enabling it to support jet aircraft
to and from international destinations.

Caticlan is the only one of the two airports to be operated under a

BOT/concession agreement, with active participation by two of the
Philippines largest companies.

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PROBLEM:
Although having no nutritional value, Sharks fin soup is a popular and
much sought-after dish served in many Chinese restaurants. Sharks fin
dumplings are an equally popular dimsum item. Hong Kong, Taiwan and
Singapore are the top three countries that trade shark fins and are the
suppliers for Philippine Chinese restaurants. Each fin weighs about 100 kg.
coming from sharks that are about 50 to 60 meters long. Some fishermen
would capture sharks, slice their fins off and toss them back to sea to die so
they can save space on their boat. More countries are banning the fishing
and trading of sharks fin. However, unless the trade of shark fin is totally
stopped, sharks may become extinct, thus creating an imbalance in the
ecosystem. To preserve sharks, one way is to encourage government to ban
its trade. Another is to encourage restaurants not to serve them, and lastly,
to campaign for customers not to consume them. All three options while
challenging to do is not impossible if the readers of this book can do
something individually or collectively about it.

The essence of learning is not in knowing but in doing what needs to

be done based on what we know. Devise and implement a campaign that will
ensure the slow down if not absolutely stop sharks fin trade and
consumption in the Philippines.

SOLUTION:

Sharks are being driven to the brink of extinction due to a huge

increase in demand for their fins over the last 20 years or so. There are many
ways we can help to spread the message about the plight of sharks and
encourage others not to consume shark fin soup (or any other shark
products). Below are a few suggestions.

1. Most importantly, dont eat shark fin soup! Talk to your friends about
shark fin soup and remember: Friends dont let friends eat shark fin soup!
Dont patronise restaurants that serve the dish. If you live near a
restaurant that serves shark fin soup, talk to the owner about shark
finning and politely ask them to consider removing shark fin soup from
the menu. Very often people are unaware of the effect that their eating
habits have on the environment. Sign up to the no shark fin pledge.
Download these information cards from the Humane Society International
to hand to the owner/manager.

2. There are many organisations fighting to save marine wildlife such as Sea
Shepherd, the Humane Society International and Wild Aid. They all need
as much support as they can get, especially financially. There are many
more organisations listed in the links section.

3. Sign up to the mailing list and take part in the campaigns. Sometimes it
feels like sending an email, writing a letter or making a phone call wont
change anything but if several people do it, it does make an impact. The
more of us there are, the harder our message hits home so do your part
it only takes a few minutes.

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4. Social networking spread the message on the internet. Post the banner
for StopSharkFinning.net on your social network site page or website.
Start up your own website or facebook page (or LiveJournal, Twitter,
posterous, whatever!). And make sure you join us
on Twitter and facebook (currently over 45,000 likes).

5. If local communities realise that they can make more money by

conserving sharks than by killing them, then we will ensure the survival of
sharks. If you are considering a holiday in a location where there are
sharks, you might want to go shark diving. This is a source of income for
communities that encourages shark conservation.

6. If you enjoy speaking in public, why not give a talk about shark finning?
This will not only enlighten others about the problem of shark finning, it
will also make you an expert on the subject as you will probably need to
do some research about it to properly inform others. Maybe you could
give a talk in your school, church or community center.

7. If you have tried convincing restaurant managers to remove shark fin

soup from their menu but they have refused, you could organise a protest
at the restaurant. It would be best to do this with friends for a bit of moral
support. Organise and prepare what you are going to do and remember to
act within the law. Theres plenty you can do without getting yourself in
trouble! If you are part of a group that is acting locally, please send us
some contact details and information about protests that you may have
planned. I would like StopSharkFinning.net to be a source of information
for people looking for anti-shark finning groups near where they live.

8. If you see any of the typical man bitten by shark news items on TV or
the internet, contact the website/TV station and ask them to produce a
news item about shark finning. Remember only about 10 people a year
are killed by sharks, but 3 sharks are killed every second by humans.

9. If you come across a business or website that is promoting shark fin soup,
send an email or post it on the stop shark finning facebook page so that
we can complain about it and hopefully get it stopped.

10. Contact people of influence to inform about what is going on and to ask
for their support in bringing an end to shark finning. This could be
politicians, celebrities, non-profits such as Greenpeace, newspaper
editors basically anyone you think might be able to make a difference.

11. Spread the word on the street with a Stop Shark Finning T-shirt.

12. Use your imagination! These are just my ideas. You may have some
much more original and interesting ideas of your own to help bring
attention to shark finning. Please post your ideas on the facebook page or
email them.

To help fight to protect sharks and other threatened and endangered wildlife,
you can do the following:

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Adopt a Shark
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BACLAS, CLARICE ANNE R.

BS AACCOUNTANCY 3A