Clark airport to remit P38M to national treasury

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Clark International Airport
Clark International Airport, in file photo by bworldonline.com

CLARK FREEPORT – The Clark International Airport Corporation will be remitting some P38 million to the national treasury, representing half of the 50 percent annual net earnings for 2014 and 2015

The dividend due to the national government is about P76.3 million for the past two years. For 2014, CRK posted a net profit of P45.5 million and P29.7 million in 2015.

CIAC President & CEO Alexander Cauguiran said Clark airport or CRK as it is known, incurred negative retained earnings during the past administration, but easily recovered when President Duterte called for airlines companies to transfer flights from Manila to Clark.

“CIAC’s well-crafted plan plus a results-oriented leadership amounted to millions of pesos in remittances. President Duterte’s resolve and call to shift (airline) operations from Manila to Clark has borne fruit, as we will now be able to remit the dividends pertaining to the years 2014 and 2015,” Cauguiran added.

Pursuant to Section 3 of Republic Act 7656, all Government Owned and Controlled Corporations (GOCC) are required to declare and remit at least 50 percent of their annual net earnings as cash, stock or property dividends to the national government.

“From 2014 to 2016, CIAC incurred negative retained earnings deficit and was exempted from declaration and remittance of dividends to the national government.” Cauguiran said.

The revised Implementing Rules and Regulations of RA 7656 stipulates that GOCCs with net income but have negative retained earnings may be exempt from declaring and remitting dividends upon proper request to the Secretary of Finance for exemption.

Cauguiran said that since President Duterte assumed office, the growth in airport operations and management of the aviation complex led to the increase in cash flow.

Meanwhile, CRK has 134 international flights and 104 domestic flights weekly and passenger traffic is projected to reach 1.5 million by end of 2017.

China Eastern Airlines, China’s second largest carrier by passenger numbers, will begin its Clark-Shanghai flights on October 18, while JetStar’s Clark-Singapore flights will start on November 18.

Also within the year, Philippine Airlines will add Tagbilaran, Bacolod and Cagayan de Oro among its flights to and from Clark.

The latest airline company that will join the bandwagon of airlines flying out of Clark is Jetstar, which will launch its maiden Clark-Singapore flight on August 15 this year, airport sources said.