Ships losing passengers to airlines

Sep. 30, 2008

Davao City-Shipping companies in the country are losing its regular passengers to the faster and more convenient air travel and also because of promotional fares.

Top officials of the Maritime Industry Authority (Marina) in region XI recently raised their concern that the passenger shipping business in the country is fast losing its viability due to a number of reasons.

One of these, according to Marina top executive Virgo Amonia, is the tough competition that passenger airlines pose like lower air fares notwithstanding the fact that air travel is more convenient and faster.

Cebu Pacific for example, has recently introduced another promotional fare called “Bag Bag Bawas” which further cuts down air fares by 200 pesos for passengers checking in without baggage. The domestic fares, all-in, has further reduced air fares from Davao to Manila from 2, 388 to only 2,188 pesos

Meanwhile, Philippine Air Lines has relaunched the PALakbayan low Fiesta Class round trip fare holiday from Manila with two nights hotel accommodation and daily breakfast.

Marina officials said the same route at sea would cost just as much in two to three days travel time compared to only more than an hour’s travel by plane.

He said the situation was further aggravated by recent maritime disasters that had hit the shipping industry such as the capsizing of the MV Princess of the Stars resulting in the decrease in the confidence of travelers with regards to the worthiness of inter-island vessels.

Amonia said the gap left by Sulpicio Lines is giving sea farers more options to go air travel.

As of now, Amonia said, there is only one ship plying the route from Davao to Manila serviced by the Aboitiz shipping group.

He said, however, that cargo shipping remains in top shape owing to the great volume of cargo that shipping companies can accommodate.

Amonia also cited weather conditions as one of the major stumbling block to the viability of passenger shipping business.

He said the country is experiencing at least 20 to 25 typhoons annually, a condition which mostly affects sea travel. (PIA)

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