PAL to resume flights to Europe

The Manila Times
July 27, 2009

PHILIPPINE Airlines (PAL) is mulling over the resumption of flights to Europe after the Philippine air panel completed an air service agreement (ASA) with the United Kingdom, a high-ranking official of the Civil Aeronautics Board (CAB) said.

Carmelo Arcilla, CAB executive director told reporters that the flag carrier expressed interest to fly to the UK. “We cannot discount the possibility that PAL [would be] resuming its flights to Europe,” he said.

The Philippine and UK governments have agreed to 14 weekly flights to Manila and or Clark and to other points in the country.

Since the start of the year, the CAB had completed air talks with Singapore, Brunei, Australia, Kuwait, Bahrain, Qatar and United Arab Emirates.

He said that about 300,000 Filipinos are working in the UK, adding that “there’s really a huge demand.”

PAL’s flight to Europe was discontinued in 1998 after the Asian financial crisis nearly sent the flag carrier into bankruptcy.

At end-March, PAL’s network covered 29 points in the Philippines and 31 international destinations.

It carried an average of 24,508 passengers (14,699 domestic and 9,809 international) and 297 tons of cargo (166 tons domestic and 131 tons international) per day.

The airline held a 45.2-percent share in the domestic market in the fiscal year-ending March, while it cornered 36.6 percent of the trans-Pacific market and 31.6 percent for Asia and Australia.

The airline has 47 operating aircraft, including Airbus 320 and 319, Boeing 747-400, and Bombardiers.

By end 2009, PAL expects the arrival of its two, brand-new and fuel-efficient B777-300ER aircraft from Boeing Co.

PAL earlier reported a net loss of $301 million in the fiscal year ending March from a net profit of $30.6 million in the same period last year.

It said revenues rose by almost 10 percent to $1.6 billion during the period.
-- Darwin G. Amojelar