LEASCOR plans to start servicing Davao-Manado route in March

LEASCOR Photo

Leading Edge Air Services Corporation (LEASCOR), the aviation arm of ACDI Multi-Purpose Cooperative (MPC), is eyeing to start servicing the Manado-Davao-Manado air route by March this year and is looking at a three times a week flight schedule.

LEASCOR and Mindanao Development Authority (MinDA) led an exploratory business mission to North Sulawesi, Indonesia to assess the potential resumption of the Davao – Manado air connectivity on January 4, 2024.

Major General Gilbert S. Llanto, chairman of ACDI MPC, told Edge Davao that currently they are working and completing all the requirements from the Civil Aviation Authority of the Philippines (CAAP) and Civil Aeronautics Board (CAB) and are hopeful to complete them by mid-February this year.

“So that we can hopefully start flying by March this year. We initially contemplated two frequencies a week but when we went there those who were involved in the previous operators said that the best thing is three times a week as an introductory flight. Because of too long a gap people will forget and trade for other destinations because there are more flights. We are looking at three times a week,” Llanto said in a phone interview.

He added that aviation professionals who are running airlines also advised them that three times a week would be a very favorable frequency.

Utilizing a Leading Edge 70-seater ATR 72-500, Llanto said they are targeting a load capacity from Davao to Manado of about 65 percent to 70 percent plus cargo.

“That’s the break-even load factor and it’s very easy to hit that load factor in a month or two as long as everyone will pass the word around,” Llanto said.

He is optimistic that with the cooperation of the Davao City Chamber of Commerce and Industry, Inc. (DCCCII) and the academe, they can meet the target load factor.

Llanto said that they are targeting traders and passengers from the academe, health care, and tourism for the said air route.

“Tourism is very robust in that area,” he said.

Previously, the route was served by Bouraq Air in 1992 until 2004. It was revived by Sriwijaya and Merpati Airlines in 2007. Then Garuda Indonesia reopened the flight in 2019 until the Covid-19 lockdown.

“As far back as 1975 the first time that I was deployed as an air force pilot in Davao may lumilipad na diyan. May Bouraq Airways flights from Manado to Davao and back and we feel this is a very viable route,” he said.

Llanto said there is a need to sustain the load factor to sustain the route. He said they are also exploring the possibility of a cargo-passenger configuration to sustain the route.

He also said that DCCCII, the city government of Davao, and the tourism sector should pitch in and push for this route to make it a regular not only three flights a week.

“But four to five times frequency every week. That would be a very robust contribution to the trade between Manado and Davao, which are also sister cities,” Llanto said.

Business leader Joji Ilagan-Bian, chairperson for the BIMP-EAGA Council of the Philippine Chamber of Commerce and Industry (PCCI), said the revival of the air route is very good news not only for Mindanao but the entire Philippines, especially since it promises economic development to BIMP-EAGA.

She emphasized things to do to sustain the linkage such as reinvigorating the private sector to do business again in EAGA. Focus on specific sectors and highlight sectors that are believed to be enablers like tourism, education, etc.

Meanwhile, Assistant Secretary Romeo Montenegro, deputy executive director of MinDA, said the proposed revival of the Davao-Manado direct flight is not just a resumption of an air route but a bridge that will bring together the peoples of Mindanao and North Sulawesi, fostering greater understanding, cooperation, and growth.

He said the direct flight route would boost economic activities in Mindanao by enhancing trade links with Indonesia, and boost the tourism sector as it provides easier, faster, and cheaper access for travelers between Mindanao and North Sulawesi, Indonesia, which in turn would stimulate the local economy, create jobs, and promote cultural exchange.

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