PAL to return to Middle East

By Paolo Montecillo
Philippine Daily Inquirer
First Posted 21:17:00 12/17/2009

PHILIPPINE Airlines may soon mount flights to the Middle East again to meet the growing demand for the flag carrier to return to the region, which millions of overseas Filipino workers (OFW) call home.

PAL expands Australian operations
Last week, local air transport officials reached a deal with their foreign counterparts for additional air rights between Oman and the Philippines.

The agreement will allow both Oman and local airlines to mount flights between the two countries.

The new deal allotted additional flights to Oman from Manila and Cebu. Carriers may now also fly to Oman from Clark and Davao as a result of the new deal.

“That country is a significant market because there are about 50,000 OFWs in Oman,” Arcilla said.

“Right now, it’s very difficult to get there because most flights pass through Abu Dhabi, Qatar or Hong Kong. [With] this deal, we can have direct flights,” he said.

A PAL official confirmed the airline’s planned return to the Middle East. The company earlier stopped flying to the region due to stiff competition from Arab airlines, which are able to offer cheaper tickets given their access to cheaper oil.

Jet fuel makes up nearly 40 percent of PAL’s expenses.

“There were initial plans a couple of months ago to have flights to Abu Dhabi [starting] this December,” the airline executive said in an interview. However, he said the plan fizzled out due to space restrictions in Abu Dhabi.

“Now, the Oman flights can be a real alternative to Abu Dhabi,” he said.