Tuesday, March 1, 2016

What's Next in Europe for Philippine Airlines?

After committing to acquire at least six Airbus A350-900 aircraft, Philippine Airlines is now in a position to increase capacity and add new destinations. At the announcement of the order, the national flag carrier revealed that it was targeting new flights to Paris, Rome, and Frankfurt. While it is a strong possibility that a new route may be launched by 2017, it remains unclear what city will be served next. philippine airlines paris Copyright Photo: Angelo Agcamaran/PPSG At present, PAL only operates one European long-haul route to London's Heathrow Airport. That route is presently served by four weekly Airbus A340 flights. However, Philippine Airlines intends to offer daily flights to London beginning in June of this year. Since opening the route to London in 2013, the national flag carrier has been eager to tap into other parts of Europe.  Philippine Airlines President Jaime Bautista recently revealed in an interview with Travel News Asia that he hopes to launch a new route to Europe by 2017. According to Philippine Airlines spokesperson, Cielo Villaluna, PAL is currently evaluating Paris and Rome as candidates for its next European destination.  Unconfirmed reports from the Exciting Centennial for Philippine Aviation blog indicate that Philippine Airlines is currently securing regulatory approvals from both Italy and France to operate flights to both countries. A slot application has been submitted to Rome Fiumicino Airport to begin four weekly flights at the end of 2016 with an Airbus A340-300 aircraft.  Meanwhile, the national flag carrier is also in slot negotiations with Paris. According to David Lim, PAL Commercial Group Senior Vice President, Philippine Airlines intends to begin flights to Paris in 2016 pending the successful acquisition of favourable slots at Charles de Gaulle Airport. However, it is believed that PAL is currently having difficulty obtaining its preferred slots.  It remains unclear whether flights to Paris will be initially operated by an A340-300 or an A330-300 aircraft. The latest unconfirmed reports indicate that the route to Paris may be operated by a 368-seat A330 four times weekly with a stop in Dubai. However, these aircraft would only operate the route temporarily until the arrival of the Airbus A350-900. NEXT DESTINATION: FRANCE VS. ITALY In a report released by anna.aero, it was reported that Milan, Italy is the number one unserved market from Manila, according to data from the OAG Traffic Analyser. Passenger traffic between the two cities grew nearly 27% in 2015 compared to 2014 with approximately 37,630 passengers travelling the route.  Image Source: anna.aero Nearly 24% of the traffic between Manila and Milan is currently travelling via Muscat aboard Oman Air. Meanwhile, traffic between Manila and Rome grew by 7.5% up to 32,513 passengers. That represents a combined total of 70,143 passengers travelling between the Philippines and Italy in 2015. According to the International National Institute of Statistics, Italy is also home to the largest population of Overseas Filipinos in the European Union with more than 170,000 living in the country. Although there is strong demand between the two nations and a large market for religious tourism, Philippine Airlines is faced with a challenge in that it wants to fly to Rome via Dubai. However, the Italian government only granted direct flights between the Philippines and Italy.  Being able to make an intermediary stop in Dubai to pick up passengers bound for Italy would not only help ensure the viability of the route, but it would also give Philippine Airlines the flexibility of operating the route with an Airbus A330-300.  Meanwhile, passenger traffic between Manila and Paris grew by 33.3% in 2015. Approximately, 34,347 passengers travelled between the two capitals last year. Although the numbers are considerably smaller than Italy, Paris may be a more appealing and viable destination if Philippine Airlines is able to obtain its preferred slots and serve the destination via Dubai.  It is also rumoured that Philippine Airlines may be exploring the possibility of flights to Frankfurt and Amsterdam. Both flights could also be routed via Dubai, where the national flag carrier currently holds fifth freedom rights.

However, not all industry experts believe mounting additional flights to Europe is the best strategy for Philippine Airlines. According to the Centre for Asia Pacific Aviation, while the A350 might make potential European routes look more attractive, Philippine Airlines will face intense competition from Gulf carriers and several other Asian carriers in the European market. PAL may generate better returns by using its newly expanded long haul fleet to expand in North America, while establishing partnerships with other airlines to cover Europe. Email This BlogThis! Share to Twitter Share to Facebook
Source: What's Next in Europe for Philippine Airlines?

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