PAL Secures Code-Share Deals to Dubai

Emirates Airlines commences Third daily flight

January 5, 2013
Flag carrier Philippine Airlines (PAL) and Emirates Airlines (UAE) has amended its PAL-UAE Confidential Memorandum Of Understanding (CMOU), more known as code sharing agreements, as it decides to continue the joint venture adding third daily flight between Manila and Dubai starting next week after both airlines found common terms.

The third daily flight will be staged in the morning and code-shared with Philippine airlines also using Boeing 777-300ER as equipment.

EK337 leaves Manila at 0845 arriving Dubai at 1350 while EK336 leaves Dubai at 1830 and arrives Manila 0630 the following day.

CAB executive director Carmelo Arcilla, said the deal was approved  last week paving the way for additional 7 weekly flights from both Emirates Airlines and Philippine Airlines under code-share bringing its total to 21 this year.

Previously, Abu Dhabi has 7 entitlements being used by flag carrier Etihad Airways, and Dubai has 7 entitlements used by flag carrier Emirates to Manila, while the other 14 entitlements was solely held by flag carrier Philippine Airlines (PAL). Both airlines have code-share relationship with PAL since 1998 allowing them to fly a total of 28 flights a week to Manila using Boeing 777-300ER planes.

The amended PAL-UAE Confidential Memorandum Of Understanding (CMOU) provides for a maximum entitlement of 21 weekly frequencies for UAE as the exclusive designated UAE carrier under Category 1 Route 1 to Dubai, while Category 1 Route 2 covering Abu Dhabi-Manila sector is also granted 21 weekly frequencies between PAL and Etihad Airways.

Negotiations between the two airlines almost failed after Emirates refused to code-share the third flight saying that it doesn't owned the additional frequencies granted to the Philippines. PAL owns seven frequencies to Dubai while UAE owns seven frequencies to Manila which they jointly served using Emirates Aircraft effective until 2014.

Controversy arose when the Civil Aeronautics Board (CAB) concluded new Air Service Agreement (ASA) with the United Arab Emirates providing additional 14 flights to the Emirate Kingdom. It granted additional seven rights to Dubai and seven more to Abu Dhabi for points in Manila.

CAB awarded last week the 14 new flight entitlements to United Arab Emirates (UAE) equally between Cebu Pacific and Airphil Express both of which have pending Airbus 330-300 orders. Airphil Express is a low cost subsidiary of PAL. None was awarded to Zest Air while PAL held on to 14 entitlements for Dubai and Abu Dhabi. PAL codeshared the routes to Dubai and Abu Dhabi via airline partners UAE and Etihad Airways (ETD) for a total of 28 flights between the two countries.

The grant of rights to Cebu Pacific also dissolves anti-trust concerns which PAL had with the Board requiring it to service the routes to the UAE.

Earlier, Cebu Pacific (CEB) filed a complaint against PAL for forfeiture of its rights  to fly the United Arab Emirates arising from non-use of bilateral air traffic rights. CEB wants to fly to the middle east starting winter season next year but their plans to expand to the region was hampered by lack or inadequate flight entitlements which were all taken by PAL and its codeshare partners. CAB rules that PAL was actively flying the route. Consequently, the government of the Philippines and the Arab Emirates expanded their Air Treaty to cover 28 weekly frequencies between Dubai, Abu Dhabi and Manila.

Previously, PAL in its Opposition letter to Emirates contend that the airline 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.”

PAL codeshared the routes to Dubai and Abu Dhabi via partners Emirates and Etihad Airways (ETD) for a total of 28 flights between the two countries.

CAB Executive Director Carmelo Arcilla said Abu Dhabi has 7 entitlements being used by flag carrier Etihad and Dubai has 7 entitlements used by flag carrier Emirates to Manila, while the other 14 entitlements was solely held by flag carrier Philippine Airlines (PAL). Both airlines have code-share relationship with PAL allowing them to fly a total of 28 flights a week to Manila using Boeing 777-300ERequipments.

1 comment:

  1. Can't wait for PH LCCs to fly to the Mideast.

    ReplyDelete