PAL set to intensify presence in Gulf region

The Philippine Airlines (PAL) is set to strengthen its presence in the Gulf region by expanding code-share agreements with partner carriers in the Middle East, the Khaleej Times reported Saturday. The 1997 Asian financial crises forced PAL, considered Asia’s oldest existing airline, to suspend flights to the Middle East in 1998. In a bid to recoup losses from the economic slump, PAL entered into a 10-year code-share agreement with Emirates Airline in September 1999, getting seat allocation for Dubai-Manila route. Under the code-sharing arrangement, the Philippine flag carrier can sell tickets using the codes (i.e. flight designator or flight number) of partner airlines to certain destinations in the Middle East where PAL does not fly to, but which are being served by the partner. Citing rising fuel prices and competition as reasons, PAL stopped in March 2006 Middle East operations. It suspended flights to and from Riyadh, Saudi Arabia, where most of the more than 2 million overseas Filipino workers in the region are residing, the report said. PAL might increase flight destinations in the Gulf region soon as its rehabilitation program is nearing completion. Speaking from Manila, Jose E.L. Perez de Tagle, assistant vice-president government affairs of PAL, said, “Although we’ve lost heavily in the past, we have managed to gain some grounds. We’ve ordered a new fleet of Airbus A320 aircraft for our regional and domestic flights and Boeing 777-300 ER planes our long-haul flights." He added that the code-share agreement with Emirates had been successful and on going for the past eight years. The report also quoted De Tagle as saying, “The code-share agreement has always been flexible. Seat allocation may increase or decrease depending on market demand. But so far it has been doing well and we’re considering expanding the agreement." On average, Emirates allot 25 seats per flight in all its 10-weekly flights to Manila for PAL, accounting 250 seats in a week. - GMANews.TV