The country pioneered the first commercial flights in Asia 70 years ago and it comes as no surprise that today, “the Philippines is supplying the world’s largest aircraft manufacturers various aerospace parts.”
Trade Secretary Ramon M. Lopez issued the claim during the European Union (EU)-Philippines Business Summit 2018, with the theme “EU Philippines: Jointly Pursuing Competitiveness for Inclusive Growth.”
EU Ambassador Franz Jessen said the “EU remains the largest investor in the country, amounting to over P246 billion.”
“However, EU-Philippines trade today is far from its full potential and there is ample margin to do more,” the envoy said.
The Philippines, Jessen said, is EU’s 42nd-largest trading partner and trade figures show there are no more than 35 percent of the trade flows between the EU and other countries in the region, such as Thailand and Malaysia.
At its headquarters at the Villamor Air Base in Pasay City, Lufthansa Tecknik provides maintenance, repair and overhaul (MRO) for various types of aircraft. It also manufactures various parts for the Airbus planes.
Lopez said, “The aerospace industry in the Philippines is one of the fastest-growing industries in the Asia-Pacific region, with exports growing by 42 percent from 2012 to 2016.”
The trade chief added that Europe and the Americas are the biggest export destinations, at 45.80 percent and 40.79 percent in 2016, respectively.
“Asia Pacific accounts for 12.82 percent share,” he added.
The exported aerospace parts include original equipment manufacturing (OEM), flight control actuation systems, interiors, galleys and equipment, panels and lavatories for the global commercial aircraft industry and interior fit-outs.
Tier 1 OEM manufacturers in the Philippines include Moog Controls Corp. (flight control actuation systems), B/E Aerospace (interiors, galleys and equipment, lavatories) and JAMCO (honeycomb panels for interior fit-outs).
Aerospace: MRO capabilities
According to Lopez, the Philippines’s MRO companies “can service various models of aircraft from different manufacturers, and the country’s large value of importation of aircraft and aerospace parts is a good indication of a growing MRO segment in the country.”
“MRO companies in the country also offer a wide range of services from maintenance, fleet management, engineering support, inventory support and cabin reconfiguration,” he pointed out.
This include servicing the largest commercial plane in the world, the Airbus A380. He said the country’s MRO companies have official approvals from the US, Europe, Cayman and Australia.
Capabilities in aviation training
Lopez said there are 39 active aviation schools in the country that can support the growing demand in aerospace and aviation in the region.
“These schools offer programs ranging from pilot training, aviation/aeronautical engineering, avionics and aircraft technician,” he said.
Lopez added the Philippines has more than 6,000 licensed pilots and 4,000 student-license holders.
“As with any industry, the prospects of Philippine aerospace industry will also be defined by the ability of the educational and training institutions to equip their students with job-ready students,” he said.
Lopez said that with the strong competencies these schools have developed, “the Philippines can serve as Asia’s hub for aviation training.”
Global demand
According to Lopez, the world will need 255,000 new airline pilots by 2027 to offset retirement and industry growth. “By 2027, global commercial fleet is expected to grow by 12,000 to roughly 37,000 aircraft —a total of 440,000 active pilots will be needed.”
Currently, there are 290,000 active pilots, “85,000 of which are in the Asia-Pacific region.”
“Leveraging on the strengths and capabilities of allied industries such as automotive, electronics and IT-BPM, the Philippines can further grow the country’s capabilities in aerospace,” he said.
Growth drivers
Lopez said the strong growth of Philippine aerospace industry “is not foreseen to taper off any sooner,” as the country’s economic condition will set a higher trajectory for better take off for the local aerospace industry.”
He said passenger traffic has grown by 31 percent from 2013 to 2017.
This robust growth, he said, would help the country double the current number of tourists from 50 million to 101.2 million by 2022.
On the other hand, strong growth in air freight, projected at 35 percent in 2020, is also seen to provide a boost to the country’s aerospace industry.
“Government efforts to modernize the armed forces, increase the number of routes and develop airport infrastructure are also seen to boost the demand for aerospace industry in the country.,” he said.