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Wednesday, November 28, 2012

PAL truly back to normal

Manila Bulletin
November 28, 2011

Philippine Airlines (PAL)'s operations are truly back to normal, just as they were before the flag carrier implemented its outsourcing program almost two months ago.

On, October 1, PAL's spin-off led to the separation of more than 2,300 workers, forcing the airline to reduce domestic flights by 30 percent while international flights were down 12 percent.

PAL used to mount 45-50 domestic and 80 international flights daily. Starting last Thursday, Nov. 24, PAL's daily domestic flights averaged 50 to 60 while international flights remained at 80, for average daily flights of 140.

As before, all PAL flights are now departing from and arriving at its exclusive hub at the Ninoy Aquino International Airport Terminal 2.

Prior to October 1, the effectivity date of PAL's outsourcing program, some flights were temporarily housed at NAIA Terminal 3 to decongest the Centennial Terminal.

PAL also resumed full in-flight meal service after a brief interruption caused by the transition to third party service providers and the protest camp of former PAL workers at the airline's Inflight Center in Pasay City.

PAL's cargo operations on both domestic and international flights have also returned to former levels.

PAL has also intensified its tourism promotion campaign immediately after the restoration of its flights and frequencies to pre-outsourcing levels.

So far, cebu remains on top of the priority list of 26 destinations which the flag carrier promotes in international roadshows to boost tourist arrivals in the Philippines.

PAL flies eight times a day between Manila and Cebu using mostly wide-body jets like the Boeing 777ER, B747-400 and the Airbus A330.

The flag carrier also flies directly from Cebu to Narita, Japan six times weekly and thrice a week to Incheon, South Korea. Effective December 2, flights to Incheon will double to six times weekly.

"cebu continues to enjoy positive load factors despite the recent tsunami in Japan and other natural calamities," confirmed Glenn Vallecera, PAL AVP-visayas Sales.

"Even during the height of PAL's spin-off/outsourcing program, flights to Cebu were largely unaffected with load factors of more than 80 percent." (EVA)

Cebu remains on top of PAL's int'l tourism promotion efforts

Manila Bulletin
November 28, 2011

Philippine Airlines (PAL) said that Cebu remains on top of its list of local destinations that the flag carrier is prioritizing in its international roadshows to boost tourist arrivals in the country.

In a press briefing, PAL spokesperson Cielo Villaluna said the airline is "100 percent committed" to sell Cebu in its 26 international destinations including selected points in its domestic network.

To jumpstart its intensified tourist promotion campaign, PAL flew in eight candidates of the Miss Earth Pageant to visit and document some of Cebu's best tourist attractions. The group's photos and videos will be featured in PAL's promo materials for distribution abroad, particularly the United States, Canada and Asia.

PAL flies eight times a day between Manila and Cebu using mostly wide-body jets like the Boeing 777ER, B747-400 and the Airbus A330. The flag carrier also flies directly from Cebu to Narita, Japan six times weekly and thrice a week to Incheon, South Korea. Effective December 2, flights to Incheon will double to six times weekly.

"Cebu continues to enjoy positive load factors despite the recent tsunami in Japan and other natural calamities. In fact, even during the height of PAL's spin off/outsourcing program, flights to Cebu were largely unaffected with load factors of more than 80 percent," said Glenn Vallecera, PAL AVP-Visayas Sales.

In coordination with the Department of Tourism, PAL's intensified tourism promotion campaign comes on the heels of PAL's restoration of flights and frequencies to pre-outsourcing levels.

Starting November 24, all PAL flights depart from and arrive at its exclusive hub at the Ninoy Aquino International Airport Terminal 2. Prior to October 1, the effectivity date of PAL's outsourcing program, some flights were temporarily housed at NAIA Terminal 3 to decongest the Centennial Terminal.

Two days ago, PAL also resumed full in-flight meal service after a brief interruption caused by the transition to third party service providers and the protest camp of former PAL workers at the airline's Inflight Center in Pasay City.

PAL's cargo operations on both domestic and international flights also returned to former levels.

Sunday, November 25, 2012

200 Dream Destinations come true with PAL, AirPhil Express and MasterCard

Manila Bulletin
November 25, 2012

Filipinos love to travel. Travelling not only provides us with a much needed respite from our daily routine, it also allows us to create memories that we can share with our family and friends.

According to results of a recent survey, Filipinos are now travelling more, locally and internationally, both for business and leisure. In addition, a greater majority of Filipinos who travel by air still prefer to fly with the national carrier. This is not surprising as Philippine Airlines and AirPhil Express have made it easier for more Filipinos to travel by offering full-service convenience and more destinations to choose from, with 28 international and 32 local destinations currently available. The list is expected to grow soon, so there's really more reasons for Filipinos to travel.

From November 15 to December 4, 2012, MasterCard gives you the chance to fly to your dream destination through another joint promotion with the Philippines' only national flag carrier, Philippine Airlines, AirPhil Express and Mabuhay Miles, where 200 MasterCard cardholders will win free flights to their destinations of choice!

Planning that trip for the holidays or next year's summer break? Purchase your Philippine Airlines and AirPhil Express tickets from PAL and AirPhil ticketing offices, travel agencies or websites using your MasterCard credit, debit or prepaid card issued in the Philippines. Every P500 or US$12 spent to purchase a Philippine Airlines or AirPhil Express ticket entitles you to one electronic raffle entry. Register at facebook.com/MabuhayMiles to earn raffle entries and choose your dream destination from among 28 international and 32 local destinations of PAL and AirPhil Express.

Ten daily winners will be drawn within the promo period for a total of 200 winners who will get a Mabuhay Miles certificate for a free round-trip ticket to their chosen destination.

Check out philippineairlines.com, airphilexpress.com or the Mabuhay Miles Facebook page for more details.

Thursday, November 15, 2012

PAL, Cayman Airways Talks 'Preliminary'

Manila Bulletin
November 15, 2012
By Edu Lopez

The Philippine Airlines (PAL) and one of its major shareholders, San Miguel corporation, has proposed a multi-million-dollar investment in Cayman Airways, according to Alan Markoff of cayCompass.com, an online news service based in Cayman Islands.

Markoff reported that Premier Mckeeva Bush spoke about it in a statement in the Legislative Assembly and was received by the Cayman Islands Government and passed on to the Cayman Airways Board of Directors to explore.

"Cayman Airways is currently in discussions with Philippine Airlines to ascertain if there are ways for the two airlines to work together. The exploration of this potential collaboration is covering a variety of areas, but includes reviewing the ability to code share, provide aircraft operations and includes other strategic areas."

Mr. Bush stressed that the investment talks were ongoing and "very preliminary" and that nothing had been decided yet.

Cayman Airways had been exploring the concept of selling preference shares - a type of equity security for a debt - to local investors and others.

"This non-voting class of shares allows holders a guaranteed return, but generally does not allow for any involvement in operational or administrative functions," the statement said. "This special class of shares would allow the airline to raise needed capital while allowing the Cayman Islands Government to maintain complete control. Should this concept become a reality, it is envisioned that many Cayman residents and Cayman companies may be able to participate."

The statement said San Miguel Corporation had expressed interest in purchasing preference shares in Cayman Airways and had provided a term sheet with their requests.

"The subject term sheet is merely a starting point and currently being reviewed to determine acceptance or non-acceptance. With respect to the proposed terms, there are many items which could be changed, eliminated or deemed unacceptable to the airline or the Government."

The investment would involve San Miguel acquiring 50 percent of the shares in Cayman Airways.

In his statement to the House, Premier Bush said that the ability for the airline to issue preference shares would require approval not only from Cabinet and the Legislative Assembly, but also from the United Kingdom.

In January 2008, the United States Federal Aviation Administration downgraded the rating for commercial air travel for all of the Philippines because its air transportation regulatory body did not fully satisfy international safety standards. That downgrade from Category 1 to Category 2 prevented Philippines Airlines from increasing its flights to the United States from 33 times per week or from switching its aging fleet to newer aircraft.

Philippines Airlines has recently purchased six new long-haul Boeing 777-300ER aircraft, but because of the FAA downgrade, it can't currently fly them to the United States.

One possible way around that problem is if the airline undertakes a wet-lease agreement - a leasing arrangement where one airline provides and aircraft, complete crew, maintenance, and insurance to an airline - with a carrier from a country with a Category 1 rating. The Cayman Islands has a Category 1 rating.

Cayman Airways CEO Fabian Whorms indicated that a possible wet lease was part of the discussions with San Miguel Corporation and Philippines Airlines.

"This Boeing 777 matter, if possible, is going to be subject to a myriad of regulatory approvals," he said. "We are still in the early stages of exploring what is possible with the authorities and also still assessing what is compatible with our operations and feasible for Cayman Airways."

Tuesday, November 13, 2012

Emirates disputes PAL’s claim

Manila Standard Today
November 13, 2012
By Lailany P. Gomez

Emirates Air denied the Philippine Airlines’ claim that the seven flight frequencies between Dubai and Manila the Middle Eastern carrier wants to add is counterproductive and unjustified.

Emirate’s Philippine manager Gigie Baroa said in a letter to Civil Aeronautics Board executive director Carmelo Arcilla the airline’s winter schedule would not undermine the confidential memorandum of understanding signed by both governments in September this year. The new schedule would take effect on Jan. 1, 2013.

“Contrary to PR’s [Philippine Airlines] assertion that it was the intention of the two governments that no more than 28 weekly frequencies were to be offered by each side on the agreed routes between UAE and Manila, it was in the fact the agreement of the aeronautical authorities of the two governments that the pre-existing borrowing of unused entitlements could continue alongside the additional daily services granted under the new confidential memorandum of understanding of Sept. 6,” Baroa said.

“This must be since neither government raised the possibility that the new CMOU would alter the pre-existing situation. Had they intended otherwise the two governments would have recorded that decision in the document, which they did not and for very good reason,” Baroa added.

Emirates said it was the intention of the two governments that the total capacity on the Dubai-Manila route be increased, including via Emirates’ third daily service, in response to the extraordinary size and growth of the market demand on the route.

Monday, November 12, 2012

Traffic rights for PAL, Cebu Pacific

Traffic rights for PAL, Cebu Pacific

BusinessWorld
November 12, 2012

THE COUNTRY’S two biggest carriers -- Philippine Airlines (PAL) and Cebu Pacific -- are poised to get additional traffic rights, Civil Aeronautics Board (CAB) officials said on Friday.

Gokongwei-led Cebu Pacific is set to be awarded 14 frequencies per week to the United Arab Emirates (UAE), CAB Executive Director Carmelo A. Arcilla said, allowing the company to pursue long-haul operations planned for the third quarter next year.

"We assigned all 14 frequencies to Cebu Pacific since they have the clearest plans to buy wide-body aircraft," Mr. Arcilla said following a CAB meeting last Friday.

He qualified, however, that the approval was still "in principle," with a formal resolution signed by all members likely to be issued within a month.

Cebu Pacific had asked for the 14 frequencies, which were the result of air talks last Sept. 5-6 that doubled traffic rights to the Arab nation to 28 frequencies per week.

Mr. Arcilla said the original 14 frequencies will remain with PAL, which utilizes its air rights through code-sharing agreements with Middle Eastern carriers Etihad Airways and Emirates.

Cebu Pacific wants to mount daily flights for the Manila-Dubai route and Manila-Abu Dhabi route starting next year. It expects delivery of its first wide-body Airbus A330 by June 2013.

CAB division chief Ma. Elben S. L. Moro, meanwhile, said the board had also approved PAL’s petition for an additional 604 seats per week to Australia on top of an existing 3,194.

The flag carrier told the CAB last month that it would use the additional entitlements for flights to "Darwin, Sydney, and Melbourne" starting Dec. 10.

PAL, the only Philippine carrier operating in Australia, currently flies a Manila-Melbourne route three times a week and a Manila-Sydney route four times a week.

PAL bucks Emirates' expansion to Manila

Manila Standard Today
November 12, 2012
By Lailany P. Gomez

Flag carrier Philippine Airlines asked the Civil Aeronautics Board to reject the petition of Emirates Air to add several additional flight frequencies between Dubai and Manila.

PAL said in letter to CAB executive director Carmelo Arcilla the Middle Eastern airline's winter 2012 schedule involving flights to Manila was counterproductive and unjustified.

Emirates wanted to increase weekly flights between Manila and Dubai from 14 to 21 effective Jan. 1, 2013.

PAL plans to introduce its own-operated flights to the United Arab Emirates by 2012 and 2014, "given the assurance that no more than 28 weekly frequencies are to be operated by each side on the agreed routes between the UAE and Manila".

"We believe that it would be difficult, perhaps, impossible, for Philippine carriers to viably sustain our own operations over the long term in the face of such a commanding undue advantage on the part of our top competitor. The envisioned new era could be very well be stillborn," PAL said.

PAL said while it had no objection to the opration by EK of 14 weekly frequencies between Dubai and Manila under the continuing code sharing arrangement, the later's petition for seven additional frequencies was unjustified.

"As code share partner, PAL honors its existing code share arrangement which remains in effect until 2014. Our objection is to the proposed unjustified and counterproductive excess of seven frequencies, or for that matter any formulation that results in an EK operation [code share or not] in excess of 14 frequencies per week on the Dubai-Manila route," PAL said in the letter.

PAL said the new PAL-United Arab Emirates confidential memorandum of understanding already provided for a maximum of entitlement of 14 weekly frequencies for EK as the exclusive designated UAE carrier under Category 1 Route.

It said EK's proposed schedule of 21 weekly frequencies would exceed that limit.

PAL also said EK's proposed petition would undermine the earlier negotiation of a new CMOU in September that was intended to usher in a new development era where the airlines of both the Philippines and the UAE would offer their own self-operated services in an environment of fair and healthy competition.

"As the board will noted, EK's proposed 21 times weekly service will result in a total UAE carrier operation of 36 weekly frequencies when added to the existing 14 times weekly Abu Dhabi-Manila services of Etihad Airways, the UAE's designated carrier for Category 1 Route 2 under the CMOU," PAL said.

Monday, November 5, 2012

PAL asks for additional seat allocation to Australia

Business World
November 5, 2012
By C. H. C. Venzon

FLAG CARRIER Philippine Airlines (PAL) has asked for more seat allocations to Australia, according to a letter the company sent the Civil Aeronautics Board (CAB) early last month.

“We respectfully refer to our letter petition dated 06 July 2012, requesting for an additional seat allocation of 604 seats on the trunk route to/from Australia,” PAL said in its letter, dated Oct. 3.

PAL said the additional entitlements will be used particularly for flights to “Darwin, Sydney, and Melbourne” starting Dec. 10.

CAB Hearing Examiners Division Chief Ma. Elben S. L. Moro said in an interview on Tuesday last week that the regulator has yet to set a hearing date for PAL’s request.

If granted, the 604 additional seats will be added to current 3,194 seats presently allocated to PAL, bringing the airline’s total seats to Australia to 3,798.

PAL currently flies the Manila-Melbourne route three times a week, while it operates the Manila-Sydney route four times a week.

The regulator has so far allocated a total of 4,454 seats to Australia, consisting of 3,194 for PAL and 1,260 for Cebu Pacific, CAB records show. PAL, however, is the only local carrier presently flying to Australia.

PAL’s petition forms part of expansion announced by San Miguel after it assumed in April the management of the airline following its $500-million acquisition of a 49% stake in the flag carrier and its low-cost sister carrier Airphil Express.

PAL will also be expanding routes to Canada starting Nov. 30 with flights to Toronto besides Vancouver. PAL announced last month it will be flying the Manila-Toronto route three times a week, besides Manila to Vancouver four times a week, to take advantage of Toronto’s “diverse population and booming economy,” the company said in a statement last month.

PAL received its third Boeing 777-300ER in July, with another one coming before yearend and another two arriving next year, as part of a deal with the US plane maker involving the acquisition of six units of this make.

The company had also ordered a total of 64 aircraft from European plane-maker Airbus in August and September in deal worth $9.5 billion. These aircraft will be delivered from next year to 2015.

PAL Holdings, Inc., the parent of PAL, posted a comprehensive income of P489.25 million for its first quarter ending in June, a turnaround from the P475.14-million loss in the same period last year. Shares of PAL settled at P5.36 apiece when they were last traded on Wednesday last week, down 11 centavos or 2.01% from P5.47 on Tuesday. -- C. H. C. Venzon