Interview with Mr. Arrey Perez, President & CEO of Clark International Airport

25 Oct Interview with Mr. Arrey Perez, President & CEO of Clark International Airport

Clark International Airport has been labeled one of the most beautiful airports in the world by the Prix Versailles. Could you provide some insights into the airport, including its technical characteristics and what contributes to its reputation as one of the most beautiful airports globally?

Clark International Airport has a rich heritage, originally one of the largest US air bases outside the mainland. When it was returned to the Philippines, we transformed it into a special economic zone, driving regional economic growth. The infrastructure we inherited included a runway designed for the space shuttle, making Clark a strategic location for a major airport. Clark is well-connected from north to south of Luzon, thanks to expressways and a new railway project funded by the US government, part of the North Luzon Economic Corridor. The terminal building we inherited, built to American standards, was immediately operational with some renovations, serving a record 4.2 million passengers annually before the pandemic — far beyond its capacity.

Recognizing the need for expansion, the government implemented 10% of a master plan aiming for 80 million passengers annually. This initial phase supports 8 million passengers per year. Our new terminal building, inspired by Mount Pinatubo and the Zambales mountain ranges, reflects Filipino heritage and the tropical setting. It offers an open design with views of Mount Arayat. The architecture incorporates lessons from past airport issues, adhering to top global standards. We adopted a hybrid public-private partnership model, with the government funding construction and privatizing operations. We successfully attracted Changi Airports and local companies to form the operating consortium.

Could you share your thoughts on the significance of the aviation sector for the economic and social development of the Philippines and how Clark contributes to the evolution of this sector?

Our main gateway is Ninoy Aquino International Airport (NAIA) in the National Capital Region. For years, NAIA has been considered one of the worst airports globally due to its limited capacity and space constraints. With the country’s growing population, economy and increasing tourist and investment influx, NAIA couldn’t keep up. To support this growth, we needed another major gateway. We were fortunate to inherit a large airbase that could be quickly converted into Clark International Airport. Unlike NAIA, Clark has ample space for expansion without right-of-way issues, making development seamless.

This area, half the size of Singapore, offers significant potential for economic contribution. Clark International Airport is three to four times larger than NAIA and includes a freeport and Special Economic Zone. This allows for diverse developments, including logistics, manufacturing, leisure and entertainment. Additionally, Clark serves as a strategic backup for the capital due to its high elevation and disaster-free location, making it ideal for a backup government center. The development of New Clark City as a backup government center ensures that in case of any issues in the capital, operations can continue smoothly. Strategically, Clark provides relief to Manila, allowing for the redevelopment of the capital’s infrastructure and attracting a skilled workforce to the area.

The airport recently announced that it will debut its lengthiest route to date, offering flights to the US West Coast via Taipei. Can you provide an overview of the key features of recently introduced routes and elaborate on the importance of this new route for the airport’s expansion in attracting visitors from the US?

Clark International Airport needs more airlines and international routes, especially to North America and the US, an important destination due to the large Filipino community and former expats who have settled here. Convenient transportation is essential for personal and business connections. The US is a giant economy and a key partner in the Philippines’ economic growth. Given the familiarity with the former airbase, now Clark Freeport Special Economic Zone, collaboration is easier.

Currently, there are no direct flights from Clark to the US so layovers are required, such as in Taipei with Starlux Airlines, to reach the West Coast and Washington State. Increased connectivity would strengthen trade partnerships, which is crucial in the current volatile economy. We need the US as a strong partner to sustain our growth and help Clark reach its potential.

Global aviation industry has increasingly recognized the importance of sustainability. How is Clark International Airport integrating sustainable initiatives into its operations to reduce its environmental impact and promote responsible aviation practices?

The Mactan-Cebu International Airport in the Philippines received a sustainability award, including Leadership in Energy and Environmental Design (LEED) certification, due to the Department of Transportation’s policy promoting sustainable practices, renewable energy and reducing carbon footprints.

We aim to achieve similar recognition for Clark by pursuing LEED certification for the entire development, not just the airport. Our projects are designed with sustainability in mind, aligning with global sustainability goals. For example, our Urban Renewal and Heritage Conservation Program includes building parks and open spaces that feature water conservation by harvesting storm and rainwater. This water will be stored in a reservoir for use during the dry season. Additionally, we have signed an agreement to build a solar farm generating 30-40 megawatts of solar energy and we are exploring solar rooftops. We are also tendering the design of our new sustainable headquarters. Sustainability is integral to our projects, ensuring we use resources efficiently to preserve them for future generations.

What social impact will the new Clark City project have and how can experts from the US contribute to this impact?

The new Clark City, part of our master plan, aims to generate 600,000 to 800,000 jobs. Currently, there are 123,000 workers in Clark and we plan to multiply this by four or five with upcoming industries. One significant project is the National Food Hub, which will greatly impact farmers by reducing middleman interference and increasing their profits. The food hub will aggregate farmers into cooperatives, supported by the government to ensure higher yields and standards. Central Luzon is a prime location for this, being the food basket of the Philippines. By centralizing trading in Clark, we reduce costs and create a strategic location for supplying Asia and North America. We are supported by USAID for logistics feasibility studies and are working with the United States Trade and Development Agency on airport expansion, including a new terminal and runway.

Clark Airport is crucial, especially for overseas Filipino workers, with many flights to the Middle East and plans for North American routes. When visiting a country, the airport is the first impression and it significantly impacts tourism. Our flagship projects support the growth of Clark, positioning it as a premier logistics and civil aviation hub. While Manila serves as the main gateway for passengers, Clark aims to be the primary hub for freight and cargo. We are developing a food hub to generate cargo traffic and attracting MROs (Maintenance, Repair and Overhaul) to support the aerospace industry, which is in high demand.

The pandemic caused a shortage of aerospace workers and we plan to establish an international aviation campus to train new professionals and export highly skilled workers. We are looking to partner with Boeing to ensure our graduates receive certifications and immediate job placements. Our talented, English-proficient Filipino workforce can quickly learn and excel in these technical fields, making this a win-win situation for Clark and the aviation industry.

Do you have a final message for the millions of readers of USA Today about choosing the Philippines as their next business, tourism or investment destination?

Clark International Airport is on track to become a major economic growth driver in the Philippines. However, we need support from partners, investors and financial institutions to secure funding, financing and technical expertise to bring our plans to fruition.