2010 Annual Report - Clark International Airport

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CLARK INTERNATIONAL AIRPORT CORPORATION
CONTENTS
1
MESSAGE FROM THE CHAIRMAN
3
MESSAGE FROM THE PRESIDENT & CEO
5
ABOUT CIAC
9
2010 HIGHLIGHTS
29
TABLE OF ORGANIZATION
MANPOWER SUMMARY
30
ORGANIZATIONAL DEVELOPMENT
31
CIAC BOARD, EXECUTIVES & OFFICERS
39
FINANCIAL REPORT
1
MESSAGE FROM THE CHAIRMAN
It has been another fruitful year for Clark International Airport Corporation (CIAC) and the entire region. The
Year 2010 has brought another year of optimism for CIAC in terms of terminal expansion, increase of
flights, passenger volume and revenues with the entry of new airlines and the coming of new investors.
Driven by confidence in the Philippine economy, it successfully lobbied for separate seat entitlements for
the Clark route. By virtue of these achievements, DMIA is assured of more flights and increased revenues
in the coming years.
The CIAC Board is committed to do everything to further improve DMIA and the whole Clark aviation
complex and develop them into an international gateway that the area has been envisioned to be. One way
to ensure this happens is to support the vision of President Benigno S. Aquino III to stamp out corruption in
government and in the private sector. Yours truly has himself long advocated honest service in
government, while working to cut red tape and make the bureaucracy more efficient.
I enjoined one and all at CIAC – from the Board members, the management and down to the employees
and staff – to support the President’s dreams for our country, and help push hard for the vision and mission
of our agency. A Freeport Zone that is full of productive investors, a vibrant economy for the region, a
population with improved standard of living will be our collective legacy for the next generation.
Mabuhay at maraming salamat!
Arch. NESTOR S. MANGIO
Chairman of the Board
2
3
MESSAGE FROM THE PRESIDENT & CEO
Year 2010 proved to be yet another challenging year for the Clark International Airport Corporation (CIAC), as it
continue to strive towards its vision to be a competitive international services and logistics center in the Asia-Pacific
Region and the premier international gateway airport of the Philippines. Despite the relatively modest annual growth,
the developments realized in 2010 have strongly positioned CIAC to be able to achieve its long-term goals.
Several significant operational endeavors were witnessed in 2010, including the entry of two additional airlines at
DMIA, helping boost the total international passenger count by an increase of 9%. Korean budget airline, Jin Air,
started operations in late October, and now flies five times a week to Incheon, South Korea. On the other hand,
South East Asian Airline (Seair) in partnership with Singapore’s Tiger Airways, started operations in December, flying
daily to Singapore. Highlights of the development in 2010 may be gleaned in detail in this Annual Report.
Moreover, a momentous development is in the pipeline as Asia’s largest low-cost airline, AirAsia of Malaysia, is
considering setting up its Philippine hub in the Clark Civil Aviation Complex. Established as a joint venture with
prominent Filipino businessmen, AirAsia Philippines shall engage the successful AirAsia business model. The
development of AirAsia Philippines is expected to provide greater connectivity to the ASEAN region, which will not
only boost economic growth by providing better access to markets but also enhance links in trade and tourism.
As we seek to achieve our medium-term strategic goals which include a projected 5-7 million passengers annually in
5 years; an efficient airport system with a fast passenger turnaround time; and the development of roads that will
make DMIA accessible to the traveling public, we will be faced with challenges brought about by the ever changing
business environment and evolving customer demands. However, as these challenges force us to reevaluate,
readjust and revalidate our business objectives, opportunities arise and a platform for innovative ideas emerge.
Leading aircraft MRO company, SIA Engineering Company (SIAEC) is set to build its second, Php 1 billion hangar to
provide MRO services to Boeing 747s and 777s, while several low-cost airlines have already expressed interest in
starting operations at the DMIA. Metrojet, the largest corporate jet company of Hong Kong, has also officially
announced to develop an MRO facility in Clark to serve the growing demand for quality engineering and
maintenance services for the Asian Business Aviation market. With the notable projects designed to improve
facilities at DMIA, CIAC is keen on raising the bar of service to meet the demands of the continuously developing
aviation industry of the country.
Acknowledging the integral part that our people will play in taking full advantage of arising opportunities and in the
ultimate achievement of our objectives, incentive programs that will strengthen personnel capabilities and attract
competent people are of utmost importance. These, coupled with corporate governance best practices ensure that
DMIA is run by a competent and highly productive workforce.
In behalf of the whole CIAC organization, I reiterate our full commitment in providing our customers and community
stakeholders with the best airport experience possible, as we continuously adapt and evolve in the unwavering
pursuit of excellence.
VICTOR JOSE I. LUCIANO
President and CEO
4
A
B
O
U
T
VISION
A COMPETITIVE INTERNATIONAL
SERVICES AND LOGISTICS CENTER IN
THE ASIA-PACIFIC REGION AND THE
PREMIER INTERNATIONAL GATEWAY
AIRPORT OF THE PHILIPPINES
5
C
I
A
C
AIRLINE OPERATORS ASIANA AIRLINES
JIN AIR
INCHEON, KOREA (DAILY FLIGHTS)
INCHEON, KOREA (5 FLIGHTS PER WEEK)
AIR ASIA
SEAIR AIRLINES
KOTA KINABALU (DAILY FLIGHTS)
KUALA LUMPUR (DAILY FLIGHTS)
CATICLAN (2 FLIGHTS PER WEEK)
SPIRIT OF MANILA
CEBU PACIFIC AIRLINES
TAIPEI, TAIWAN (3 FLIGHTS PER WEEK)
CEBU (3 FLIGHTS PER WEEK)
BANGKOK (2 FLIGHTS PER WEEK)
SEAIR AIRLINES/ TIGER AIRWAYS
HONG KONG (DAILY FLIGHTS)
MACAU (4 FLIGHTS PER WEEK)
SINGAPORE (DAILY FLIGHTS)
SINGAPORE (TWICE DAILY FLIGHTS)
6
CLARK CIVIL AVIATION AREA:
2,367 HECTARES
RUNWAY:
PRIMARY- 3,200 METERS LENGTH
61 METERS WIDTH (FULL INSTRUMENT)
SECONDARY- 3,200 METERS LENGTH
45 METERS WIDTH (VISUAL FLIGHT RULES)
RADAR COVERAGE:
PRIMARY- 60 NAUTICAL MILES
SECONDARY- 220 NAUTICAL MILES
PRECISION APPROACH:
CATEGORY 1
CRASH, FIRE & RESCUE CAPABILITY:
CATEGORY 9
PASSENGER TERMINAL BUILDING:
2.5 MILLION PASSENGER CAPACITY
PER YEAR
CATERING SERVICE PROVIDER:
GATE GOURMET
MAINTENANCE REPAIR OVERHAUL
FACILITIES:
SIA ENGINEERING PHILIPPINES
ASIAN AEROSPACE
FUEL SERVICE PROVIDER:
LUBWELL CORPORATION
GROUND HANDLING FACILITIES:
CLARK AIRPORT GROUND HANDLING
SERVICES INC.
CLARK AIRPORT SERVICE SUPPORT
CORPORATION
MIASCOR CLARK GROUND HANDLING
7
AIRPORT FACILITIES PHILTRANCO SERVICES ENTERPRISES
DMIA- PASAY- SM MEGAMALL- CUBAO BUS STATION (VICE VERSA)
BUS
SERVICES
GENESIS TRANSPORT SERVICES INC.
AVENIDA- DMIA (VICE VERSA)
MARIVELES-SAN FERNANDO-DMIA-BAGUIO (VICE VERSA)
BALER (AURORA- CABANATUAN- DMIA ( VICE VERSA)
PARTAS TRANSPORTATION CO., INC.
PASAY - DMIA (VICE VERSA)
CUBAO - DMIA-LAOAG,/BENGUET (VICE VERSA)
AIRPORT PUBLIC TRANSPORT AIR-CONDITIONED JEEPNEYS
AIRPORT SHUTTLE SERVICES INC.
DMIA-DAU
ANY POINT OF LUZON
AVIS PHILIPPINES
D8 BROTHERS TRANSPORT SERVICE
MANILA, SUBIC, BAGUIO CITY, DAGUPAN
SAN FERNANDO LA UNION, BOCAUE,
MANILA, SUBIC, BAGUIO CITY AND PAMPANGA
TARLAC AND PAMPANGA
JMW
WITHIN CENTRAL LUZON
TRIANGLE TAXI
SHUTTLE
SERVICES
MANILA, MARIVELES BATAAN, BAGUIO CITY,
METRO ASIA CAR SERVICES INC.
LA UNION, PANGASINAN, TARLAC AND PAMPANGA
MANILA, SUBIC AND PAMPANGA
8
2010 HIGHLIGHTS 9
Operations Statistics
INTERNATIONAL PASSENGER FLIGHTS
Boosted by the entry of South
Dec
East Asian Airlines (Seair) and
Nov
Oct
Jin Air flights during the last
Sep
quarter of 2010, a two per cent
Aug
Jul
(2%) increase in international
Jun
flights was recorded in 2010
May
with a total of 2,672 flights
Apr
Mar
compared to 2,613 flights in
Feb
2009. Seair started its twice
Jan
0
80
160
daily flights to Singapore on
240
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2010
239
213
232
232
229
210
209
213
205
207
228
255
2009
228
193
241
228
227
218
199
210
215
201
222
231
December 21, 2010, while Jin
Air started its five times a
week flights to Incheon, South Korea on October 27, 2010. In addition, Spirit of Manila
(SOMA), which averaged four flights per month to Taipei, Taiwan further increased the
international flights in 2010.
International passenger volume
registered a nine percent (9%)
increase for 2010 with a total of
INTERNATIONAL PASSENGER VOLUME
Dec
Nov
Oct
Sep
607,704 passengers compared
to 559,792 passengers in 2009.
This increase can be partially
attributed to the entry Seair and
Jin Air in 2010, which posted
Aug
Jul
Jun
May
Apr
Mar
Feb
an eighty one percent (81%)
Jan
0
20,000
Jan
40,000
60,000
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
2010 58,216
49,378
55,113
58,354
55,429
48,513
46,531
46,134
40,778
43,860 46,353 59,045 Oct
Nov
Dec
2009 53,640
41,897
50,133
53,260
53,465
47,938
39,459
43,162
35,979
39,151 45,476 56,232 10
and fifty five percent (55%) load factor, respectively.
DOMESTIC PASSENGER FLIGHTS
With the replacement of Seair’s
Dec
aircraft for its Clark-Caticlan
Nov
route from a 19-seater LET 410
Oct
Sep
aircraft to a 33-seater Dornier
Aug
Jul
328,
Jun
decline of its weekly flights from
May
and
the
subsequent
seven (7) to two (2) flights per
Apr
Mar
week starting July 2010, total
Feb
domestic
Jan
flights
in
2010
decreased by thirty four percent
0
20
40
60
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2010
44
36
45
39
42
40
22
22
22
22
22
23
2009
44
41
51
47
50
42
50
52
38
51
56
50
(34%) from 572 flights in 2009
to 379 flights in 2010.
DOMESTIC PASSENGER VOLUME
Given an overall increase in
domestic load factor from fifty
one percent (51%) in 2009 to
seventy six percent (76%) in
2010, total domestic passenger
Dec
Nov
Oct
Sep
Aug
Jul
Jun
volume
posted
percent
(51%)
a
fifty
one
increase
with
Apr
46,525 domestic passengers in
Mar
May
Feb
2010
compared
passengers in 2009.
11
to
30,732
Jan
0
1,500
Jan
3,000
4,500
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2010 4,052 3,869 4,252 4,564 4,633 3,900 3,513 3,403 3,234 3,348 3,743 4,014 2009 3,035
2,324
2,591
2,974
2,779
1,918
2,037
2,172
1,499
2,398 3,227 3,778 INTERNATIONAL PASSENGER DISTRIBUTION PER DESTINATION
12
Air Entitlements COUNTRY TURKEY BAHRAIN SINGAPORE SECURED IN 2010
CAPACITY For Specified Routes: 3 Freq/week with any type of aircraft (delegations agreed to meet again by 2011 in order to increase the frequency to 7) 31 frequencies Another 10,000 seats weekly in each direction, bringing a total of 20,000 passengers seats CARGO 200 tons Maximum of 200 tons weekly without 5th freedom rights SECURED
SECURED IN 2008
IN 2009
COUNTRY
CAPACITY
CARGO
COUNTRY
CAPACITY
AUSTRALIA
4,000 seats
1,300 tons per week
CAMBODIA
32 frequencies per week
[add 1,000 after approval for CANADA
7 frequencies per week
3,000 seats (5,000 seats)]
FINLAND
7 frequencies per week
[add 1,000 after approval for HONGKONG
6,300seatsper week
4,000 seats (6,000 seats)]
IRAN
7 frequencies per week
BAHRAIN
28 frequencies per week
JAPAN
14 frequencies;
BRUNEI
1 frequency per week
1400 tons per week
additional 6 coefficients KUWAIT
14 frequencies per week
14 tons per week
(Clark‐Osaka and/or Nagoya v.v.)
LIBYA
5 frequencies per week
300 tons per week
MACAU
6,300seatsper week
400 tons per week
QATAR
3 frequencies per week (any aircraft except A380)
MALAYSIA
9000 seats
SINGAPORE
10,000 seats per week
May convert capacity to cargo NETHERLANDS
7 frequencies per week
services at ratio of 4 seats to 1 THAILAND
8,700 seats per week
tion
SPAIN
14 frequencies per week
With 3 , 4 & 5 freedom traffic rights and with any type of aircraft
UNITED ARAB EMIRATES
42 frequencies per week
unlimited
UNITED KINGDOM 7 frequencies for B747’s or 10 frequencies for smaller aircrafts per week
SECURED IN 2007 AND EARLIER
COUNTRY
CAPACITY
CARGO
KOREA
32 frequencies per week
400 tons
NEW ZEALAND
7 frequencies per week
COUNTRY
CAPACITY
BELGIUM
2 frequencies per week
CHINA
6000 seats per week
EGYPT
3 frequencies per week
GERMANY
7 frequencies per week
INDIA
7 frequencies per week
INDONESIA
300 seats per week
NAURU
1 frequency per week
NEPAL
2,500 seats per week
PAKISTAN
2 frequencies per week
PALAU
200 seats per week
SWITZERLAND
3 frequencies per week
TAIWAN
450 seats per week
rd
th
CARGO
700 tons per week
1,400 tons per week
700 tons per week
Norestriction on capacity & aircraft
700 tons per week
700 tons per week
700 tons per week
th
USA
Unlimited
VIETNAM
Unlimited
2
Hot Air Balloon Fiesta
The Philippine International Hot Air Balloon Festival (PIHABF) is considered to be the
country’s biggest aero sports event and a highly anticipated tourism event. Led by its
President and CEO, CIAC chaired the joint CIAC-CDC 15th PIHABF Committee, together
with the CDC President and CEO as co-chairman.
Given the heightened public awareness largely due to the increased publicity efforts and
massive promotions through radio (Magic 89.9 FM), national TV (GMA 7, ABS-CBN 2,
NBN 4), newspaper and billboards advertisements, an estimated 70,000 visitors attended
the 4-day event, posting a fourteen percent (14%) increase from last year’s approximately
60,000 visitors.
Moreover, CIAC and CDC partnered with educational travel agents to promote the event
via school-to-school blitzes, tapping major educational institutions in Region III and Metro
13
Manila, while Local Government Units (LGUs) and various private institutions entered into
sponsorship deals.
Throughout the duration of the event, business peaked for most tourism-related
enterprises within Clark and its surrounding municipalities. As a performance indicator,
occupancy level at hotels located inside Clark was monitored from February 11 to 14,
2010. As expected the occupancy levels reached as high as eighty five percent (85%) to
one hundred percent (100%) from February 11 to 13, 2010 due to the high demand
brought about by the event.
Overall, the 15th PIHABF is considered successful by a significant number of sponsors,
concessionaires, Clark locators, tourism groups and the public, who gave their support
and expressed their satisfaction in the whole event. As such, PIHABF proves to be a
worthy investment and a great contributor in increasing the number of tourists as well as
enhancing business within and around the Freeport.
14
ISO 9001:2008 Certified for DMIA International Passenger Facilitation Process 15
On January 2009, CIAC implemented the
Listed below are the major QMS-related
ISO 9001:2008 Project to standardize
activities for year 2010:
and systematize the processes and
procedures involved in the facilitation of
international
passengers
and
other
terminal support operations. A crucial part
1. Regular QMS Monthly Meeting of
DMIA
Inter-Agencies
and
CIAC
Support Processes
of this project was the development of a
2. QMS Planning of QMS Core Group
Quality Management System (QMS) that
3. Awarding
of
ISO
9001:2008
meets world industrial and commercial
Certificate for the DMIA International
standards, including the provision of
Passenger Facilitation Process
quality services to international travelers
4. Quarterly Conduct of Time and Motion
and passengers using the DMIA. This
Study
QMS successfully passed the certification
5. Quarterly
process facilitated by TÜV Rheinland on
Feedback
December
passengers, suggestion boxes and
21,
2009
and
the
ISO
9001:2008 certificate for the said system
was officially awarded on March 24,
2010.
Conduct
Survey
of
Passenger
(interview
with
electronic mails)
6. QMS Awareness and Internal Quality
Audit Training on August 3 to 5, 2010
a. Additional Internal Quality Audit
Being
an
ISO
9001:2008
certified
organization, CIAC is officially and fully
committed
to
the
continuous
b. Oath taking of the New Internal
Quality Audit
7. Conduct of Audit Planning
enhancement of the quality level of its
8. Conduct of Internal Quality Audit on
services. In addition, various activities
the DMIA International Passenger
and training programs were facilitated to
Facilitation Process on September 29
ensure
to October 5, 2010
the
effective
and
efficient
implementation and monitoring of the
quality management system in place.
9. QMS Root Cause Analysis Workshop
on October 26 and 27, 2010
16
10. Conduct of 3rd QMS Management
Review on November 15, 2010
20. DMIA Terminal Expansion Project
Phase I (inaugurated on June 26,
11. Conduct of 4th QMS Management
Review on November 26, 2010
2010)
21. Installation of Self Check-in Counter
12. QMS Awareness Activities
of Air Asia Berhad in the DMIA
13. Executive Briefing on QMS
Passenger Terminal Building
14. QMS
Orientation
with
Bureau
of
Immigration and Deportation Officials
on November 30, 2010
22. Procurement of Test Kit for X-ray
23. Procurement of Test Kit for Walk
Through Metal Detector
15. Installation of Brass Signage (ISO
24. Planning
activities
on
the
9001:2008 Certified) at the departure
development of CIAC QMS Phase II
area of DMIA Passenger Terminal
Project (Scope: Finance Department,
Building
People
16. Posting
of
Quality
Frames
and
Department,
Procurement
Department)
Tarpaulins in conspicuous areas
17. Posting of Quality Tarpaulins on the
Following the successful ISO certification
offices/workstations of DMIA Inter-
of the DMIA International Passenger
Agencies, CIAC Departments and
Facilitation Process, CIAC is currently
CIAC Offices
working on securing an ISO 9001:2008
18. Posting of the CIAC ISO Certification
processes
Logo in the CIAC website
19. QMS-
related
improvements
certification for the facilitation of its
significant
in
Finance
Department,
People Department and Procurement
Department. Certification for this CIAC
ISO Phase 2 Project is expected to be
completed by year 2011.
18
Memorandum of Agreement Signing between CIAC and The Asia Foundation for the revision and updating of the Airport’s Land Use Plan 19
On April 15, 2010,
CIAC
Asia
and
The
Foundation
(TAF)
signed
Memorandum
a
of
Agreement (MOA)
to develop Clark
as a service and
logistics
hub.
Supported by the
USAID, the grant
provided by TAF includes the update of the land use plan and preparation of strategic
plans for the full development of the Clark Civil Aviation Complex as a premier service and
logistics hub in the country. To facilitate the said preparations, TAF will provide a team of
consultants that shall assist CIAC for a period of two years, while CIAC will provide nonconfidential strategic plans. The agreement further stipulates that CIAC and TAF will have
constant and continuous exchange of information to ensure the success of the program.
Training programs to enhance the skills of CIAC's planning, marketing and operations
personnel will also be scheduled.
20
Passenger Terminal 1 Expansion The expanded Passenger Terminal Building (PTB) was inaugurated by Her Excellency
President Gloria Macapagal-Arroyo last June 26, 2010. This expansion project increased
the total capacity of the DMIA Terminal Building to 2.5 million passengers per year. With a
total floor area of 2,970 square meters, the DMIA PTB now features modern equipment
such as two passenger boarding bridges, an expanded concession area, VIP lounge areas,
X-ray walk-thru machines, Flight Information Display System (FIDS), closed circuit television
(CCTV) system, background music/public address system and a building management
system.
21
GENESIS BUS WITH DMIA ADVERTISEMENT In July 2010, the Marketing Department
launched the DMIA Awareness Program
as a part of its thrust to promote the
operations and services of the DMIA.
The project included the creation of a
unique brand for DMIA and placing bus
sticker ads, billboards and tarpaulins,
and tri-media advertisements all over the
Northern Luzon region.
In particular, bus sticker advertisements
were placed on the buses of Genesis
Transport Services, Inc.
No. of Units:
Routes:
52 Buses
Baguio to Avenida/Cubao
Bataan to Pasay/Cubao
La Union to Pasay
Bataan to Baguio
Baler to Pasay
22
Jin Air Inaugural Flights Dagupan to Baguio
Jin
Air,
South
budget carrier
Korea's
started
its
operations in the last quarter of
2010. Flying the Clark to Incheon
route, Jin Air operates five (5)
flights weekly, utilizing a 180seater
Boeing
737-800
aircraft. To formally mark Jin Air’s
start of operations in Clark, a
simple reception ceremony was
organized to welcome Jin Air’s
inaugural flight last October 27,
2010.
23
Jin Air is the second South Korean
commercial airline to operate in Clark,
following Asiana Airlines, which started
operations in October 2003. It is a full
subsidiary of South Korea’s flag carrier
and largest airline carrier of Korean Air.
Jin Air began its operations in July
2008 with routes to local destinations in
Korea. In October 2009, it began flights
to Bangkok, Osaka and Guam.
Since 2004, Korean tourists have
contributed significantly to the local
economy of Angeles City and the
communities in the Metro Clark area,
as well as the rest of Central Luzon.
With an estimate of 20,000 Korean
tourists in the Clark and Subic areas,
they have contributed to the growth
and development of Clark by directly or
indirectly generating businesses and
employment for the people in the area.
24
SEAIR STARTS SINGAPORE ROUTE 25
South East Asian Airlines (Seair), in partnership with Tiger Airways of Singapore, started
its flights to Singapore in December 2010. Seair's operations is expected to further boost
the airport’s
development
as
it
serves
more passengers,
especially
Overseas
Filipino Workers working in Singapore. Currently flying twice a day to Singapore, Seair
started its operations in Clark in 1995, making it a pioneer airline at the airport. Prior to its
Singapore route, Seair operates domestic flights to Caticlan.
On December 7, 2010,
His
Excellency
President
Aquino
Benigno S.
III
led
the
blessing of the two (2)
Airbus 319 aircrafts at
the
Seair
hangar
located within the Clark
Civil Aviation Complex.
These
aircrafts
are
being leased from its
partner Tiger Airways.
Following the launch of
its
Singapore
route,
Seair is also planning to
offer budget flights to
popular
destinations
that include Hong Kong, Macau, Vietnam, Thailand, Taiwan, South Korea and Japan. Two
(2) more Airbus A-319 aircrafts are expected to be delivered by the first half of 2011.
Internet
flight
bookings
would
be
marketed
through
the
Seair’s
website
at
www.flyseair.com, as well as via the website of Tiger Airways at www.tigerairways.com.
26
Medical City Hospital Groundbreaking at GGLC 27
The Global Gateway Logistics City (GGLC) project accomplished several milestones in
2010, which included the employment of 199 full-time personnel, with 157 employed
directly by Peregrine and an additional 42 by Herstal, the GGLC site security contractor.
Approximately 200 other jobs were also created by virtue of the steady work provided to
sub-contractors and vendors, while an additional USD7.5 million was further infused in the
development of GGLC, including two (2) signature and iconic entrance signs with
fountains, its associated roadways, and much of the underground infrastructure in the
Aeropark.
On December 7, 2010, Medical City, GGLC’s first locator to officially sign a lease contract,
had its groundbreaking ceremony led by His Excellency President Benigno S. Aquino III.
With 3.5 hectares of land area and an investment cost of USD 24 million, Medical City will
include a tertiary hospital and various wellness facilities with 200 beds. Also part of the
Medical City groundbreaking event was the official “Statement of Agreements” signing by
Cisco and Creative Hotel Concepts Incorporated (CHCI).
The Medical City Clark is
expected to be fully-operational by 2013.
28
TABLE OF ORGANIZATION
Board of Directors
Chairman
Office of the Corporate Secretary
President & CEO
Internal Audit Department
Corporate Planning & MIS
Department
Legal Services
Department
Executive Vice President & COO
Airport Safety Office
Airport Control Center
Airport Security Quality
Control Office
Airport Operations Group
Business Development Group
Corporate Services Group
Airport Terminal
Department
Corporate Communications
Department
People Department
Aviation Security
Department
Business & Marketing
Services Department
Procurement Department
Emergency Services
Department
Accounting Department
Aviation Engineering
Department
Treasury Department
Property Management &
Transportation Services
Department
MANPOWER SUMMARY
RANKS Officers Managers Assistant Managers Supervisors Rank and File TOTAL
29
YEAR 2010 YEAR 2009 4 9 13 29 303 358 4 9 13 27 299 352 PERCENTAGE INCREASE ‐ ‐ ‐ 7.41% 1.34% 1.70% ORGANIZATIONAL DEVELOPMENT TRAININGS
Corporate Orientation
Records Orientation
Approval of the CIAC Annual Fire Prevention,
Basic Safety, Fire Fighting and First Aid
Orientation
Training and Seminar on Police Intelligence
CIAC Records Management Program
(Records Inventory and Records Disposition
Schedule)
Events Management Workshop
PhilGeps Training
Aviation Security Risk and Prevention
Workshop
AVSEC Awareness Seminar
MCLE Lecture Series 52
Seminar on Labor Laws
Seminar on Protocol
Lecture on Counterfeit Money Detection
International Electronics Conference and
Expos
PARTICIPANTS
Newly-hired Employees
Employees who handles documents
Employees from CIAC and its locators
Personnel from Airport Security
Department
Document Controllers/ Record keepers
from all departments
Personnel from Marketing Department
Personnel from Bids and Awards
Committee Secretariat and Procurement
Department
Airport Security Officer
CIAC employees
Corporate Lawyers
HR Supervisor
CIAC employees
CIAC employees
Personnel from Airport Engineering
Department and Corporate Planning &
MIS Department
30
BOARD OF DIRECTORS
NESTOR S. MANGIO
CHAIRMAN
31
BENIGNO N. RICAFORT
VICE CHAIRMAN
VICTOR JOSE I. LUCIANO
PRESIDENT & CEO
RAFAEL L. ANGELES ALEXANDER S. CAUGUIRAN ALFONSO G. CUSI
DIRECTOR
DIRECTOR
DIRECTOR
ROMEO N. DYOCO, JR. SILVESTRE MANUEL G. PUNSALAN, JR. JESUS S. NICDAO
DIRECTOR
DIRECTOR
DIRECTOR
NARCISO L. ABAYA
ADVISER
ALOYSIUS R. SANTOS
ADVISER
PERLITA M. SAGMIT EVANGELINE G. TEJADA
CORPORATE SECRETARY
CORPORATE TREASURER
32
VICTOR JOSE I. LUCIANO
PRESIDENT & CEO
33
ALEXANDER S. CAUGUIRAN
EXECUTIVE VICE PRESIDENT & COO
EXECUTIVES
ROMEO N. DYOCO, JR.
VICE PRESIDENT FOR
OPERATIONS & BUSINESS DEV’T
LAURO A. ORTILE
VICE PRESIDENT FOR
ADMINISTRATIVE & FINANCE
34
MANAGERS
DARWIN L. CUNANAN
CORPORATE PLANNING & MIS DEPT.
MELITO S. DESALES
INTERNAL AUDIT DEPT.
CYNTHIA C. DUNGCA
LEGAL SERVICES DEPT.
(OFFICER-IN-CHARGE)
RONALD P. AQUINO
FEDERICO G. GARCIA, JR. EDGAR M. GUEVARRA
BIDS AND AWARDS COMMITTEE
CORPORATE COMMUNICATIONS DEPT.
AVIATION SECURITY QUALITY
CONTROL OFFICE (OFFICER-IN-CHARGE)
35
RUEL T. ANGELES
AVIATION ENGINEERING DEPT.
SURESH A. DASWANI
BUSINESS & MARKETING SERVICES DEPT.
HILARION RITCHE D. NACPIL FEDERICO E. PRIMERO, JR. JOSE MARLOWE S. PEDREGOSA
AIRPORT TERMINAL DEPT.
EMERGENCY SERVICES DEPT.
AVIATION SECURITY DEPT.
SILVERIO A. CLEMENTE
MARIE-TESSIBETH T. CORDOVA
PEOPLE DEPT.
PROCUREMENT, PROPERTY &
TRANSPORTATION SERVICES DEPT.
NANCY C. PAGLINAWAN
ACCOUNTING & TREASURY DEPT.
(OFFICER-IN-CHARGE)
36
ALEX G. ABSALON
EMERGENCY SERVICES DEPT.
JOSEPH RAYMUND P. CANLAS
AVIATION ENGINEERING DEPT.
JESUS ABELARDO F. PUNZALAN
BUSINESS & MARKETING SERVICES DEPT.
37
FERNANDO S. TORRES
AIRPORT TERMINAL DEPT.
MARCELINO O. IBANEZ, JR.
AVIATION SECURITY DEPT.
ARNEL P. SAN PEDRO
CORPORATE COMMUNICATIONS DEPT.
ASSISTANT MANAGERS
MILANI I. REYES
PEOPLE DEPT.
RIZA L. SISON
PROCUREMENT DEPT.
BONIFACIO M. YADAO
PROPERTY DEPT.
38
FINANCIAL REPORT 39
CONDENSED BALANCE SHEET (Unaudited) YEAR 2010
ASSETS
Current Assets
Cash and Cash Equivalents (Notes 2 & 3)
Receivables (Note 4)
Inventories (Notes 2 & 5)
Prepaid Expenses (Note 6)
Other Current Assets (Note 7)
Total Current Assets
Investments
(Note 8)
YEAR 2009
30,281,615.10
82,324,508.75
4,472,086.43
4,604,745.03
353,623.72
14,090,865.80
48,495,512.20
2,653,386.24
49,611,631.00
179,192.05
122,036,579.03
115,030,587.29
884,300.00
884,000.00
1,560,298,519.84
613,692,279.13
1,331,639,444.54
589,897,821.46
2,173,990,798.97
1,921,537,266.00
192,060.00
192,060.00
192,060.00
192,060.00
2,297,103,738.00
2,037,643,913.29
44,228,355.42
5,685,199.20
9,743,844.37
62,685,159.97
54,217,881.40
5,759,736.39
2,938,688.83
26,191,667.74
122,342,558.96
89,107,974.36
337,534,151.79
202,050,869.02
2,428,276,539.45
37,074,315.60
46,332,000.00
195,399,321.89
2,382,849,399.79
37,074,315.60
3,004,935,875.86
2,661,655,037.28
518,081.26
508,787.47
3,127,796,516.08
2,751,271,799.11
Non-Current Assets
Property, Plant and Equipment (Notes 2 & 9)
Due from Central/Home Office-CDC (Note 10)
Total Non-Current Assets
Other Assets
Restricted Fund/Assets (Note 11)
Total Other Assets
TOTAL ASSETS
LIABILITIES AND EQUITY
Current Liabilities
Payable Accounts (Note 12)
Inter-Agency Payables (Note 13)
Intra-Agency Payables (Note 14)
Other Liability Accounts (Note 15)
Total Current Liabilities
Non-Current Liabilities
Loans Payable (Note 16)
Long-Term Liabilities (Note 17)
Due to Central/Home Office-CDC (Note 18)
Due to BCDA (Note 19)
Total Non-Current Liabilities
Deferred Credits (Note 20)
TOTAL LIABILITIES
Equity
Capital Stock (Note 21)
Retained Earnings (Deficit)
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY
1,250,000.00
(831,942,778.08)
1,250,000.00
(714,877,885.82)
(830,692,778.08)
(713,627,885.82)
2,297,103,738.00
2,037,643,913.29
40
CONDENSED STATEMENT OF INCOME AND EXPENSES YEAR 2010
Income
YEAR 2009
Business Income
311,758,315.50
341,912,121.11
Gross Income
311,758,315.50
341,912,121.11
111,469,618.27
45,496,059.24
7,990,918.03
24,900,071.16
111,012,509.08
50,305,626.24
7,836,876.83
30,780,313.32
189,856,666.70
199,935,325.47
1,065,116.55
988,583.59
7,240,320.74
26,817,155.57
2,773,509.94
6,748,788.57
815,972.50
1,273,500.71
243,775.76
28,352,678.97
16,437,987.15
7,680,985.64
132,744,969.90
3,233,292.81
2,733,177.17
6,782,075.45
22,945,235.61
2,421,969.40
21,691,391.90
5,097,727.76
554,195.00
227,500.00
1,886,899.46
255,207.02
29,854,946.09
19,063,014.34
250,000.00
2,569,830.00
7,178,652.13
125,448,089.88
233,183,345.59
252,193,204.02
19,479,428.04
26,398,163.62
442,519,440.33
478,526,693.11
(130,761,124.83)
(136,614,572.00)
Less: Expenses
Personal Services
Salaries and Wages
Other Compensation
Personnel Benefits Contribution
Other Personnel Benefits
Total Personal Services
Maintenance and Other Operating Expenses
Traveling Expenses
Training and Scholarship Expenses
Supplies and Materials Expenses
Utility Expenses
Communication Expenses
Awards and Indemnities
Advertising Expenses
Printing and Binding Expenses
Rent Expenses
Representation Expenses
Subscriptions Expenses
Professional Services
Repairs and Maintenance
Donations
Extraordinary and Miscellaneous Expenses
Taxes, Insurance Premiums and Other Fees
Depreciation Expense
Total Maintenance and Other Operating Expenses
Financial Expenses
Total Expenses
Income (Loss) from Operations
Add/(Deduct) Other Income/Expenses
Net Income (Loss)
Provision for Income tax
Net Income (Loss)
41
2,258,201.11
(128,502,923.72)
(128,502,923.72)
10,172,561.25
(126,442,010.75)
263,828.30
(126,705,839.05)
STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY COMMON STOCK (Authorized 200,000 shares @ P100 par value)
Balance at beginning of year (Paid-up 12,500 shares @ P100)
Additional shares issued during the year
Balance at end of year
YEAR 2010
P
1,250,000.00
1,250,000.00
YEAR 2009
1,250,000.00
1,250,000.00
DEPOSIT ON SUBCRIPTIONS
Balance at beginning of year
Conversion of deposits on subscriptions to capital stock
Balance at end of year
-
-
APPROPRIATED RETAINED EARNINGS
Balance at beginning of year
Appropriations for capex and loan amortizations
Balance at end of year
-
-
UNAPPROPRIATED RETAINED EARNINGS
Balance at beginning of year
As previously reported
Correction of prior years' errors
Balance at beginning of year
Net Income
Dividends declared
Appropriations for capex and loan amortizations
Prior years adjustments
Balance at end of year
(596,208,814.49)
(118,669,071.33)
(714,877,885.82)
(128,502,923.72)
P
(473,266,650.30)
3,763,674.86
(469,502,975.44)
(126,705,839.05)
11,438,031.46
(118,669,071.33)
(831,942,778.08) (714,877,885.82)
(830,692,778.08) (713,627,885.82)
42
CASH FLOW STATEMENT (In Thousands) YEAR 2010
Cash flow from operating activities:
Income Items
YEAR 2009
298,576
292,562
OPEX
(186,831)
(221,397)
Payables
(110,963)
(103,809)
(18,574)
(25,723)
(17,791)
(58,367)
13,466
130,245
Advances, Receivables & Others
Total Cash Provided (Used) for operating activities
Cash flow from investing activities:
Proceeds from maturing placements
Advances from CDC for CAPEX Funding
Placements
CAPEX
Total Cash Provided (Used) for investing activities
24,702
6,705
(11,488)
(51,610)
(273,566)
(152,604)
(246,886)
(67,264)
Cash Flows from Financing Activities:
Proceeds from Borrowings
291,202
46,332
Cash Payment of interest on loans/bonds payable and other
financial charges
Total Cash Provided (used) by Financing Activities
(7,808)
283,394
46,332
Total Cash Provided (Used) for the period
18,716
(79,299)
Add: Cash and cash equivalents, beginning
(3,848)
75,451
Cash and cash equivalents, ending
14,869
(3,848)
Add: Temporary Investments/Time Deposits (year-to-date)
Local Currency
Foreign Currency (Peso Equivalent)
Total Temporary Investments
Total Cash and Cash Equivalents
43
2,061
4,015
13,351
13,924
15,413
17,939
30,282
14,091
NOTES TO FINANCIAL STATEMENT 1.
HISTORICAL BACKGROUND
By virtue of Executive Order (E.O.) No. 192, which was issued on July 27, 1994,
CIAC was organized to operate and manage the Clark Civil Aviation Complex as a
wholly-owned subsidiary corporation of the CDC.
After two years, E.O. No. 360 was issued on August 16, 1996, which amended E.O.
No. 192, making CIAC as a wholly-owned subsidiary corporation of the BCDA.
On July 5, 2002, the Securities and Exchange Commission (SEC) approved the
merger of CDC and CIAC pursuant to E.O. No. 7 issued on March 26, 2001, with
the former as the surviving entity. Thus, the financial statements of CIAC for CY
2002 were combined with the financial statements of CDC.
CIAC was re-established as a subsidiary of the BCDA under E.O. No. 186 issued
on March 10, 2003. After a month, E.O. No. 186 was repealed by E.O. No. 193
issued on April 4, 2003, reverting CIAC as a subsidiary of CDC. The SEC
subsequently approved this on September 4, 2003 and as a consequence, all
transactions related to CIAC operations were separated from CDC books beginning
October 1, 2003. However, the real accounts of CIAC prior to its re-incorporation in
September 2003 were still carried in the books of CDC until October 31, 2006. It
was only in November 2006 that the balances of the real accounts were transferred
from CDC’s financial records to CIAC books. Thus, effective November 2006, the
accounts of CIAC were fully segregated from the books of CDC.
Finally, E.O. No. 716 was issued on April 3, 2008, which amended E.O. No. 193,
transforming CIAC as a subsidiary of BCDA. The Implementing Plan which was
finalized and approved in 2010, has yet to be implemented.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Inventories
Office supplies inventory valuation is based on the moving average method while
for the other inventories such as, other supplies, drugs and medicines, gasoline, oil
& lubricants, spare parts and construction materials, these are valued at cost using
the first in-first out (FIFO) method.
44
Property, Plant and Equipment
Records at BCDA show that the airport complex presently under the territorial
jurisdiction of the company measures some 2,200 hectares or 22,000,000 square
meters. However, ownership of the land is reported with BCDA, therefore not
recorded in the books of CIAC. In addition to land, buildings, office equipment and
furniture that were taken over from the Americans are not recorded in the books of
the company as well. The property and equipment taken up in the books represent
only those that were purchased or acquired by CIAC upon its organization in 1995.
Property and equipment are carried at cost less accumulated depreciation.
Significant improvements and renewals, including incidental costs are capitalized,
while cost of maintenance and repairs is charged to expense. When property is
disposed, the cost and the related accumulated depreciation are removed from the
accounts, and any resulting gain or loss is credited or charged to current
operations.
Depreciation policies are as follows:
a. Straight-line method of depreciation is used based on the economic lives of the
assets.
b. Transportation equipment are depreciated for 5 years using the Sum of the
Years Digit Method.
c. COA Circular Nos. 2003-007 and 2004-005 were implemented starting January
2004.
Foreign Currency Transactions
Transactions in foreign currency are recorded in Philippine peso based on the
exchange rate prevailing at the time of the transactions. Exchange gains or losses
are being realized as follows: 1) during the end of the year based on the
closing/prevailing rate as of balance sheet date; 2) during periodic adjustments; and
3) during trade/conversion of dollar to peso. Last in-first out (LIFO) method is used
in recording dollar withdrawals. Under this method, withdrawals are converted to
peso at the rate of exchange prevailing at the time of the latest deposit.
Income Recognition
Accrual method is used in recognizing rent income, landing & parking fees and
income from concessionaires, except interest charged to locators which are
recorded at the time of payment (cash method).
45
3.
CASH AND CASH EQUIVALENTS
This account consists of:
12/31/10
Cash - Collecting Officers
P
Cash - Disbursing Officers
1,821,640
3,391,531
213,757
Cash in Bank - Local Currency PNB Clark
113,922
1,113,323
(1,475,412)
Cash in Bank - Local Currency PVB Clark
2,142,671
(14,588,038)
Cash in Bank - Local Currency PVB Clark
3,300,419
1,300,000
Cash in Bank – Local Currency, Time Deposits
2,061,477
4,014,837
Cash in Bank - Foreign Currency PNB $
723,159
1,602,425
Cash in Bank - Foreign Currency PVB $
5,752,365
3,986,199
13,351,381
13,923,761
Cash in Bank - Foreign Currency, Time Deposits
Total
4.
P
665,873
Cash on Hand - Petty Cash Fund
957,190
12/31/09
P
30,281,615
P
14,090,865
RECEIVABLES
Balances are as follows:
12/31/10
Accounts Receivable – Trade
P
70,012,699
12/31/09
P
31,912,653
Allowance for Doubtful Accounts
Accounts Receivables
(Accrued Landing & Parking Fees)
(3,487,256)
(3,487,256)
6,338,231
11,780,042
Accounts Receivable – Others
4,544,309
125,093
0
4,484,529
Notes Receivable
Due from Officers and Employees
1,049,690
Interest Receivable
Due from GOCC (MIAA)
Due from GOCC (CIAC Provident Fund)
Other Receivables
Total
P
2,949,230
11,078
38,535
173,434
173,434
3,208,334
1,116
473,989
518,136
82,324,508
P
48,495,512
The Accounts Receivable – Trade account are collectibles on rent and aeronautical
fees from various locators, airline operators and concessionaires previously
recorded in CDC books, of which the outstanding balances (including the
corresponding allowance) as of October 31, 2006 were transferred by CDC to CIAC
in November 2006. Henceforth, the setting-up of receivables will be done in CIAC
books.
46
Included also under the Accounts Receivable – Trade account, booked in June
2010, is the lease rental arrears of CAGHSI for the period January 2007 to
December 2008 amounting to P12.01M covered under MOA between CIAC and
CAGHSI dated December 12, 2008.
The Allowance for Doubtful Accounts of P3.4M was included among the accounts
transferred by CDC in November 2006. The said allowance for doubtful accounts
was already set-up prior to the merger of CIAC and CDC in 2001.
Charged under the Accrued Landing and Parking Fees are the aeronautical fees
and charges of various airline operators.
Under the Accounts Receivable – Others are charges to concessionaires
representing their power consumption. Charged also under this account are the
electrical charges of CAGHSI, recorded in June 2010, for the period March 2002 to
December 2008 amounting to P4.27M as per MOA.
The Due from Officers and Employees account are receivables from CIAC
personnel for personal calls, medical expenses and cash advances for travel.
Due from GOCC (MIAA) refers to the expenses paid by CIAC for MIAA for the
capsule laying activity. Efforts to collect the same have been exerted.
Due from GOCC (CIAC Provident Fund) represents the retirement portion of the
corporate share of CIAC remitted to the Provident Fund.
Other receivables refer to the personal telephone calls of employees of support
agencies’ SSS benefit claims advanced by CIAC to its employees, receivable from
Tiger Airways for meals served to their stranded passengers due to cancelled flight
and those which were turned-over by CDC in November 2006.
5.
INVENTORIES
Under this account are as follows:
12/31/10
Office Supplies
P
P
664,234
Other Supplies
437,084
293,181
Drugs and Medicines
223,732
193,670
Gasoline, Oil and Lubricants
11,430
25,680
Spare Parts
1,516,405
856,610
Construction Materials
1,605,826
620,011
Total
47
677,609
12/31/09
P
4,472,086
P
2,653,386
The inventory of office supplies, other supplies, gasoline, oil & lubricants, spare
parts and construction materials are maintained by the Property Division while the
inventory of drugs and medicines is maintained by the Corporate Clinic and the
Emergency Services Department. The valuation of the office supplies is based on
the moving average method, while for the rest of the inventory accounts, the first infirst out method is used.
6.
PREPAID EXPENSES
This account includes:
12/31/10
Prepaid Insurance
P
Advances to Contractors
12/31/09
3,182,361
P
1,351,678
Deferred Charges
Other Prepaid Expense
Total
P
1,951,647
46,332,000
0
577,984
70,706
750,000
4,604,745
P
49,611,631
Prepaid insurance represents premiums (unexpired portion) for the insurance of
DMIA occupied buildings, the airport liability insurance and the life insurance of
CIAC officers and employees.
The Advances to Contractors account amounting to P46.3M represents the 15%
mobilization to the contractor of the Terminal Expansion Project, with a balance of
P1.3M net of recoupment on progress billings of the contractor.
The Other Prepaid Expense account represents a one year subscription for
Peanuts Low Cost Airline for the period April 2010 to April 2011 and a two-year
subscription for Fortigate 100A (MIS Firewall) for the period September 6, 2010 to
September 5, 2012 which are amortized every month.
7.
OTHER CURRENT ASSETS
Classified as other current assets is the Guaranty Deposits account amounting to
P321,037. These are payments to utility companies (electric, water, etc.) and
various suppliers that are refundable upon cancellation/termination of contracts.
The balance of the deposits turned over by CDC in November 2006 is P175,837.
The unused tax credits for P32,586, also lodged as other current asset, represents
the tax withheld by airline operators/locators which can be applied by CIAC as a
deduction from its income tax payment.
48
8.
INVESTMENTS
Lodged under this account is the CIAC’s investment of P884,000 related to Mimosa
Golf and Country Club shares which was turned over by CDC in May 2007 and the
investment of P300 to Subic-Clark Alliance Development Corporation for
subscription of three shares of stocks.
9.
PROPERTY, PLANT AND EQUIPMENT
Breakdown is as follows:
Construction
in Progress
Equipment
Furniture &
Fixtures
Land &
Building
Improvements
TOTAL
At December 31, 2009
Cost
P
7,526,651
Accumulated Depreciation
Net Book Value
7,526,651
1,491,839,361
11,738,587
874,201,031
2,385,305,630
672,834,538
6,997,095
373,834,553
1,053,666,186
819,004,823
4,741,492
500,366,478
1,331,639,444
819,004,823
4,741,492
500,366,478
1,331,639,444
15,994,380
594,791
56,325
361,408,298
(94,713,515)
(563,406)
(37,472,302)
(132,749,223)
Year Ended December 31,
2010
Opening Net Book Value
7,526,651
Additions
344,762,802
Depreciation for the Year
Closing Net Book Value
352,289,453
740,285,688
4,772,877
462,950,501
1,560,298,519
352,289,453
1,507,833,741
12,333,378
874,257,356
2,746,713,928
767,548,053
7,560,501
411,306,855
1,186,415,409
740,285,688
4,772,877
462,950,501
1,560,298,519
At December 31, 2010
Cost
Accumulated Depreciation
Net Book Value
P
352,289,453
Properties of CIAC previously booked in CDC before and during merge costing
P1.186B, with a net book value of P565M as of October 31, 2006, were turned over
by CDC to CIAC in November 2006, and were thus included in the property and
equipment and accounted for the huge increase as of December 31, 2006.
49
Included under the equipment account is the Terminal Radar Approach Control
(TRACON) Project awarded to Selex Sistemi Integrati (formerly Alenia Marconi).
The project was funded through a term loan facility granted by Deutsche Bank
S.P.A. and guaranteed by the Trade and Investment Development Corporation of
the Philippines. The project was completed on May 25, 2007 and total cost
reached P593M as of August 31, 2007. The TRACON was commissioned by the
Department of Transportation and Communications effective October 25, 2007.
The Construction in Progress account represents the nearly completed Terminal
Building I Expansion – Phase I.
10. OTHER NON-CURRENT ASSET
The Due from Central/Home Office (CDC) account represents booked revenues of
CIAC as of October 31, 2006 but whose corresponding receivables are booked in
CDC. The accounts receivables as of October 31, 2006 were turned over by CDC
in November 2006, henceforth, the booking is now done by CIAC. All collections
are remitted to CIAC, except for the payment of rent and aeronautical fees by UPS
which are still remitted to CDC to service the payment of interest and bank charges
on the Philippine Veterans Bank loan acquired by CDC for CIAC in financing the
UPS Phase II Project.
11. OTHER ASSETS
Under this account is the Restricted Fund/Assets for P192,060 deposited at UCPB
representing supersedeas bond posted by CDC on labor case with an employee.
This account was turned over by CDC in November 2006.
12. PAYABLE ACCOUNTS
This account includes:
12/31/10
Accounts Payable
P
Due to Officers and Employees
Total
44,024,613
12/31/09
P
203,742
P
44,228,355
54,097,034
120,847
P
54,217,881
The accounts payable refer to the accrual of various expenses while the Due to
Officers and Employees account represents the tax refund due to the CIAC
personnel.
50
13. INTER-AGENCY PAYABLES
Lodged under this account are:
12/31/10
Due to BIR
P
4,943,254
12/31/09
P
5,182,223
Due to SSS
268,083
271,060
Due to HDMF (Pag-ibig Fund)
368,100
203,390
Due to Philhealth
105,762
103,063
Total
P
5,685,199
P
5,759,736
The Due to BIR refers to the withheld taxes on salaries of employees and expanded
taxes on suppliers while the Due to SSS, HDMF and Philhealth are the premiums
and loans for remittance.
14. INTRA-AGENCY PAYABLES
Under this account are:
12/31/10
Due to Provident Fund
P
Due to AMWSLAI
Due to CIAC EMPC
Due to SMD
Total
P
8,927,664
12/31/09
P
2,543,419
3,550
3,550
798,180
377,170
14,450
14,550
9,743,844
P
2,938,689
The Due to Provident Fund, AMWSLAI and CIAC EMPC refer to premiums and
loans due for remittance while the Due to SMD are the union dues for remittance.
15. OTHER LIABILITY ACCOUNTS
This account consists of:
12/31/10
Guaranty Deposits Payable
P
Performance Bond/Bidders Payable
Locators' Advance Rent & Security Deposit
51
P
6,560,859
Concessionaires' Advance Fee & Security Deposit
Total
36,016,625
12/31/09
P
1,999,613
6,286,879
798,757
587,222
19,308,919
17,317,954
62,685,160
P
26,191,668
Charged under these accounts are guaranty deposits, performance bond, advance
rent and security deposit payments from various bidders, concessionaires and
locators which are expected to be realized and/or returned within the current period.
16. LOANS PAYABLE
A domestic loan from the Philippine Veterans Bank was availed for the Terminal I
expansion project. The loan was granted/approved in December 2009 with the
following terms: ten (10) years with two (2) years grace period on principal from
date of release of the loan. Total drawdown to date is P337.5M.
CIAC is also at present servicing the payment of interest for a loan procured from
Deutsche Bank for the funding of the TRACON Project. The balance of said loan
as of year-end is at $4,616,428.92.
17. LONG-TERM LIABILITIES
Lodged under this account are as follows:
12/31/10
Locators' Security Deposit
P
12/31/09
99,310,696
P
98,483,692
Locators' Performance Bond
24,463,098
25,109,848
Advance Rent
78,277,075
71,800,072
Advance Concessionaire Privilege Fees
Total
0
P
202,050,869
5,710
P
195,399,322
Charged under these accounts are payments from various locators representing
security deposits, performance bond and advance rent expected to be realized
and/or returned beyond one year. Included in these accounts are security deposits
and performance bond amounting to P4M and P1.8M, respectively, transferred by
CDC to CIAC in November 2006.
18. DUE TO CDC
Part of the Due to Central/Home Office (CDC) account were various CIAC operating
expenses and capital expenditures paid for by CDC. Also included in this account
are the various assets and liabilities with a net amount of P597.85M as of October
31, 2006 transferred by CDC to CIAC in November 2006.
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19. DUE TO BCDA
An amount of P37M was advanced by BCDA to fund the payment to Selex Sistemi
Integrati representing 35% initial payment for the purchase of spare parts for the
Terminal Radar Approach Control (TRACON) Project and the supply of radome,
spare parts, accessories and installation.
20. DEFERRED CREDITS
12/31/10
Deferred Credits
P
518,081
12/31/09
P
508,787
Charged under this account are the power consumption of various operators and
inter-branch collections from untraced accounts.
21. EQUITY
Capital Stock:
No. of Shares
Authorized
200,000
Paid-up Capital
12,500
Amount
P
20,000,000
1,250,000
CIAC has an application for an increase in capital authorization lodged at the
Securities and Exchange Commission for P2.5B which was approved by the Board
of Directors in June 2007.
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