TNT mulls direct RP flights

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TNT Express Philippines is eyeing the introduction of direct flights to/from the Philippines and entering into inter-line agreements with airlines to boost capacity.

TNT Express country manager Cetin Yalcin said direct flights to/from either Cebu or Manila and to/from Southeast Asia and Europe is being considered in response to greater capacity demand from South Luzon businesses, particularly the Cavite, Laguna, Batangas, Rizal, Quezon (Calabarzon) area where the volume of IT-related products is rising substantially.

Yalcin said the direct flight will reduce transit time by about 30% and cost by 50%.

“Many electronics firms from the Calabarzon area prefer that TNT handle their products to Southeast Asia and Europe,” he said.

“Imports to the area are also expected to drastically increase this year particularly from India and TNT would like to be ready to handle this increasing demand,” Yalcin added.In terms of inter-line agreements with airlines, TNT has only one with Cathay Pacific.

The express operator is looking at a 1,000-square meter warehouse in Calabarzon and setting aside P10 million to lease and operate the facility for at least 10 years.

TNT is also eyeing a similar facility in Cebu to handle the area’s expected surge in shipments, mainly furniture, handicraft and fashion accessories.

Earlier, TNT said it projects a 17% increase in total volume this year due to continued recovery by members of the Semiconductors and Electronics Industries of the Philippines (SEIPI). SEIPI members saw a more than 50% growth in shipments in January this year, its highest since the start of the global financial crisis in early 2008.