PHILIPPINE Airlines (PAL) is withdrawing from the domestic sector to develop its longhaul international services, believed to be more profitable and the first step to regaining flag carrier status, beginning with a new Manila-Toronto service in November.
Beginning this winter (October 28), PAL will transfer all domestic flights to sister LCC AirPhil Express, while retaining major domestic routes such as Cebu, Davao and Bohol.
The transferred domestic flights will initially operate as codeshares between the two carriers, meaning PAL is currently selling tickets for flights to be served by AirPhil, which is awaiting official approval for a name change to PAL Express (TTG Asia e-Daily, September 4, 2012).
Rochelle Monteverde, account executive, Global Explorer Travel & Tours, believes exiting the domestic sector is a smart move. Structured as a legacy carrier, PAL cannot compete with rates offered by LCCs, but AirPhil – as an LCC – can be positioned to compete with domestic market leader Cebu Pacific, she explained.
By concentrating on longhaul, PAL can also work on regaining its status as Philippine flag carrier, she added.
On the longhaul front, PAL has successfully applied for more seat allocations for the Middle East, and plans to fly to Europe and the US. With other carriers, it has also been allotted more seats to Asian destinations such as South Korea.
Meanwhile, PAL has also announced the launch of a Manila-Toronto connection beginning November 30, spurring a shakeup in PAL’s Canadian operations.
The daily Manila-Vancouver service will be revised to four times weekly, to alternate with a three times weekly Manila-Toronto flight. On the return leg, Vancouver-Manila will have a dedicated four times weekly service, with a shared service from Toronto three times a week. Toronto-Manila will thus be a one-stop service via Vancouver.
“There has been a big clamour from our customers in Toronto and all along Canada’s eastern seaboard, particularly from the large Filipino community, for a PAL service to their part of the country,” said Ramon Ang, president, PAL.
Minerva de Ocampo, operations manager, Sharp Travel & Tours, said opening new routes and nonstop flights such as Manila-Toronto provides more options for travellers, especially Asians who can now fly direct to Toronto without stopping over in the US, and not have to apply for US visas.
