Asian Business Aviation Association (AsBAA) Philippine Chapter Meeting 07 June 2018 3:00 p.m. to 5:00 p.m. INAEC Training Room, INAEC Hangar General Aviation Area, Domestic Airport Pasay City, Philippines

Attendees:

1. Benjamin R. Lopez Chairman, AsBAA Philippine Chapter/INAEC

2. Gary Moran Vice Chairman, AsBAA Board of Governors

3. Maximillian Motschmann Member, AsBAA Board of Governors

4. Aldi Dexter P. Ampong INAEC Aviation Corporation

5. Capt. Federico R. Ercilla INAEC Aviation Corporation

6. Capt. Gilbert M. Tabberrah INAEC North Aviation Corporation

7. Hans Christian M. Ben National Grid Corporation of the Philippines

8. May Bernardo Pegasus Air

9. Richard B. Rivera Masters Flying School

10. Lorenzo Naval PATTS College of Aeronautics

11. Jun Navarro PATTS College of Aeronautics

12. Penny Lim Navfix Flight Services

13. Jose Valdez PATTS College of Aeronautics

14. Norman Ortiz Challenger Aero/SMC

15. Aldrin Reyes Challenger Aero/SMC

16. Harold Sicat AEV Aviation

17. Victor Bautista AEV Aviation

18. Ferdinand Ibasco Royal Star Aviation

19. Arthur P. Quiton Royal Star Aviation

20. Edgar Aguilar Society of Aerospace Engineers of the Philippines/INAEC

21. Gonzalo Capili Leading Edge Air Services Corporation

22. Edgardo C. Mendoza Leading Edge International Aviation Academy

23. Jose Tony E. Villarete Ayala Aviation

24. Serjoel Calminero Nationwide Aviation Support Services, Inc.

25. Manolito Manalo Ocampo and Manalo Law Firm

Proceedings of the Meeting:

Mr. Benjamin R. Lopez, Chairman of the AsBAA Philippine Chapter, called the meeting to order. He gave a brief introduction of Mr. Gary Moran and Mr. Max Motschmann as members of the AsBAA Board of Governors.

The attendees introduced themselves, stating their names and the companies they represent.

Mr. Lopez then provided background information on AsBAA and the programs of the Philippine Chapter, specifically AsBAA’s project to be conducted towards the end of the year jointly with the Civil Aviation Authority of the Philippines (CAAP). He said that, in pursuing any program or advocacy with AsBAA, the intent is to have an end result that will get the attendees and other operators involved.

Mr. Motschmann gave an update on the meeting held between AsBAA Philippine Chapter and the Director General of CAAP, Capt. Jim Sydiongco, about the proposal of AsBAA to implement the International Standards for Business Aircraft Operations (IS-BAO) in the Philippines. He reported that the CAAP Director General expressed willingness to help operators and talked of his plans to form a committee to analyze the present Philippine Civil Aviation Regulations (PCAR) to make the transition from the existing regulations to IS-BAO. AsBAA has formally requested the assistance of the International Business Aviation Council (IBAC) in this regard, and the IBAC Director General plans to visit the CAAP on August 28, 2018.

With three (3) additional applications from Royal Star Aviation, Prime Aviation, and Navfix Flight Services, Mr. Motschmann expressed the hope to secure more applications to AsBAA from the attendees.

Mr. Motschmann also put forward the idea in which the active AsBAA members will also form their own work committees, composed of individuals with experience working with the regulators, such as the CAAP, which will assist in the transition from the PCAR to IS-BAO, in order to elevate the safety standards on one hand and reduce the costs and red tape for the operators on the other.

AsBAA has signed a Memorandum of Understanding to be the consultant of Subic Airport.

Mr. Moran then presented updates on AsBAA activities in the region.

Mr. Moran discussed the Asian Business Aviation Conference & Exhibition (ABACE) held in Shanghai, China in April 2018, which event had an estimated 10,000 attendees, including delegations from Subic and Clark, and 170 exhibitors.

Mr. Moran also provided updates on the Southeast Asian region. AsBAA is being established in Malaysia, Indonesia, and Thailand, with the Philippines being the model chapter. The Philippines and Malaysia chapters of AsBAA are gathering momentum, while the Indonesia and Thailand chapters are in the process of getting “rebooted.”

An AsBAA board of directors meeting was held earlier in the month in Hong Kong. Mr. Moran explained that the members of the board of directors of AsBAA, headed by Jenny Lau as Chairperson, and his fellow Vice Chairpersons, Philip Balmer of Tag Aviation and David Dixon of Jet Craft, serve for a period of two (2) years. There is a Board of Governors, the members of which were appointed by the Board of Directors, with each member having different functions and responsibilities. Jo Yiu, formerly of the Hong Kong Business Aviation Center, and Frank De, Chief Executive Officer of Sino Jet, have joined AsBAA’s Board of Governors.

Mr. Moran suggested that, in making a difference in the Philippines, AsBAA should not take on every problem. Instead, the AsBAA should focus on two (2) problems, solve them, be successful at resolving these problems, and move on to the next one.

AsBAA is looking into a static display event in Singapore that will grow into a bi- annual event that can be held in Manila, Malaysia, Thailand, Indonesia, and other countries in the region.

Mr. Lopez provided the updates on the Philippines.

The first event was an investment trip that took place in January of this year, in which around 20 delegates participated. The delegates were taken to Manila, Clark, and Subic, where they were able to hold meetings with the CAAP, Manila International Airport Authority (MIAA), Bases Conversion Development Authority (BCDA), Clark International Airport Corporation (CIAC), Clark Development Corporation (CDC), and Subic Bay Metropolitan Authority (SBMA).

One of the issues AsBAA wants to bring before the regulators is the side of business aviation or general aviation. For general or business aviation, it is not simply the number of persons that are being transported but it is also about the GDP per passenger inside the business jet. That is the advocacy of AsBAA – to give a voice to the business aviation sector.

While there are other aviation organizations in the Philippines, Mr. Lopez explained that AsBAA is different because it is focused on business aviation and safety.

Mr. Motschmann reiterated the need for support for AsBAA and encouraged the attendees to submit their applications. He mentioned a proposal in which the membership fees will be effective from the date of submission of the membership and for a period of one (1) year after.

There will be two (2) big events for AsBAA Philippine Chapter this year, one day after the other, namely, the Philippine Aviation Safety Day and Pilots Day.

On June 12, 2018, there will be an annual general membership meeting for AsBAA in Singapore.

Mr. Moran also discussed the Icons of Aviation Awards. In 2017, this event raised USD26,000 for Orbis Flying Eye Hospital. The 2018 Icons of Aviation Awards will be held on November 10, 2018 in Hong Kong.

There is also a Singapore Aviation Week, which is a flagship event for the Southeast Asia business aviation and general aviation sector. This includes the annual general meeting for AsBAA. Last 2017, AsBAA held its first Safety Day sponsored by Bombardier.

The AsBAA Discovery Program aims to bring the next generation into aviation by promoting business aviation at the school level, e.g., an international school for children aged eight to nine.

When asked if PATTS School of Aeronautics (PATTS) has an international tie-up, Mr. Jose Valdez replied in the negative, but clarified that PATTS has tie-ups with the logistics community, such as an internship program with Airbus Beijing and an MRO in Japan. He explained that the students are focused on securing jobs with airlines, but he personally is looking at the value of the general aviation sector. Mr. Moran related his similar experience

with students who, after having been introduced to business aviation, have become more open to opportunities in that sector.

For IBAC, there was a meeting with the National Business Aviation Association (NBAA) in Shanghai, China, with talks centered in greater representation and greater visibility among the various aviation authorities around the world.

On the communications and digital presence, there are considerable potential benefits for the use of various platforms such as Linkedin or Facebook. AsBAA also has a newsletter published monthly, through which members can make its services known throughout the region, and a website, which has been recently updated.

Mr. Serjoel Calminero, from Nationwide Aviation Support Services, a ground handling company, asked what benefits can be derived from being an AsBAA member. Mr. Moran replied that an AsBAA member can get out of AsBAA what it puts in. The benefit is that, if an operator has a problem, AsBAA can provide a forum for resolving it. AsBAA can take a systematic approach to address priorities and bring the matter before the regulators, i.e., “the voice of the many is stronger than the voice of the one.” More than that, an initiative like IS- BAO, for example, can promote best practices among the members and throughout the region. A member can also get the opportunity to talk to other AsBAA members, and AsBAA then becomes a platform for sharing information.

Mr. Richard Rivera, from Masters Flying School, asked how to bridge the gap from the PCAR to IS-BAO. Mr. Motschmann replied that the Director General of the CAAP gave instruction to make a gap analysis between the PCAR and IS-BAO. AsBAA can submit its suggestions complete with recommended wordings of the regulations. An AsBAA member can have its inputs considered during the process.

Mr. Moran added that meetings such as this, in which a ground handling company and a flying school are present, provide a good opportunity for aviation operators to learn more about what is going on in other areas of the general aviation sector.

The other attendees expressed their intent or willingness to join AsBAA.

Mr. Motschmann also said that AsBAA should engage with the Department of Trade and Industry (DTI) and Department of Tourism (DOT) to show the government the benefits of business aviation to the economy of the country. The promotion of general or business aviation should be done not only at the CAAP or Civil Aeronautics Board (CAB) level but also on the economic side of the government.

Mr. Lopez said that aside from AsBAA advocating the issues that are relevant to the general and business aviation sector, it is also good business to become part of AsBAA. AsBAA provides exposure to people in different countries and provides good networking possibilities not only in the Philippines but across the region as well.

Mr. Rivera mentioned that, in case of foreigners studying in Philippine flying schools, the foreign regulator will check them as approved training organizations (ATO). Mr. Motschmann said that flying schools should maintain their competitiveness through excellent standards, and not by dropping their fees.

PATTS is interested in the Student Chapter of AsBAA Discovery Program. Mr. Moran acknowledged that AsBAA does need a Discovery link in the Philippines.

It was discussed that the AsBAA members can form different working committees regarding their multi-sectoral concerns, and these could feed into the general organization of AsBAA. AsBAA members can then come together before the regulatory authorities as regards these advocacies.

Mr. Motschmann talked about the Philippine Aviation Safety Day.

For Philippine Aviation Day, there will be an initial session wherein the fixed-wing and rotary wing pilots will each have their own separate sessions, after which will be the general session. The event may be held at the Philippine Air Force Museum. There will also be a Pilots Day, which will be open to pilots with commercial pilots licenses or in active flying status in the Philippine Armed Forces.

Mr. Edgar Aguilar briefly introduced the Society of Aerospace Engineers of the Philippines. He said that his association holds a national convention every year, with around 200 to 300 participants, including both aeronautical students and aero engineers. They plan to invite AsBAA during the convention to talk about the aviation sector in general.

The meeting adjourned at 5:05 p.m.