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.