Thursday, September 21, 2017, 8:55 am

PAL may terminate alliance with Etihad; Will it sign up with Emirates?

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Philippine Airlines (PAL) could reduce its Middle East flights and terminate alliance with the UAE carrier Etihad Airways while increase frequency to other destinations around the world.

According to a respected think-tank CAPA, the carrier “is considering reducing capacity to the Middle East in 2017 while expanding in several other international markets, including Australia, China and the US. Yields in all seven of the group’s Middle East markets – all of which have been launched over the last three years – have been impacted by intensifying competition and weaker outbound demand.”

CAPA reported that the national carrier of the Philippines can suspected Abu Dhabi service and also end tie-up with Etihad Airways – which is headquartered in the UAE capital.

“The airline group has not benefitted significantly from its Etihad codeshare, and may be better off partnering with another airline,” it noted.

Among the other markets PAL is looking at over the next couple of years are Australia, China, US, Europe.

“Nonstops for Brisbane and more capacity for Sydney are in the pipeline for Australia, while in the Chinese market PAL is looking to launch Chengdu,” CAPA added.

On December 1, PAL announced a direct flight from Cebu to Singapore from December 16, which will bring holiday seekers straight to the Lion City without having to connect in Manila.

 

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