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.