Philippine Airlines Prepares for Return to European Skies

Philippine Airlines is set to launch flights to at least five European cities as it seeks to quickly resume flights following the lifting of a three-year-old European Union ban that restricted the carrier from serving the continent. A ruling that oversight improvements by the Southeast Asian nation’s aviation authorities meant it was now able to ensure compliance with safety regulations could see new long-haul links introduced between Manila and Amsterdam, Frankfurt, London, Madrid Paris, and Rome within the next six months.

The lifting by the European Union of the ban on Philippine Airlines (PAL) to fly to Europe is another testimony to PAL’s reputation as a safe airline,” said Ramon S Ang, President and Chief Operating Officer, Philippine Airlines. “This welcome development also signals the westward expansion of our international route network. Credit goes to the Philippine government for all its effort and hard work in successfully addressing this significant concern hounding our aviation industry for years.”

Although the ban has only been in force for three years, it is 15 years since Philippine Airlines last provided regular scheduled services to Europe. Speaking to The HUB this week, a senior PAL official said the carrier was in a much stronger position to be able to serve the European market and the significant ethnic and leisure demand thanks to its recent fleet evolution. The routes are likely to be served using a mix of Airbus A330-300 and Boeing 777-300 equipment.

PAL currently has a fleet of eight A330-300s and five 777-300s, the latter presently being used on routes to Sydney, Tokyo Narita, Toronto and Vancouver. The PAL official suggests the European services could resume as early as the beginning of the winter schedule in late October this year although final negotiations with airports to secure slots mean no date has yet been formally communicated.

According to local media reports, the Philippines’ Tourism Secretary, Ramon Jiminez has suggested the new flights will help boost European visitors to the country to around 600,000 a year, up around 50 per cent on last year’s figure and a big step towards its stated goal of attracting 5.5 million total tourists on an annual basis. “More than providing Filipinos living and working in Europe with the most direct link to Manila, we hope to bring the best of the Philippines to Europe and the best of Europe to the Philippines,” added Ang.

In the table below we highlight the largest O&D markets in Europe from/to the Philippines last year. Unsurprisingly, the six city markets proposed by PAL are all within the stop seven European destinations by demand, the only addition being a second city in Italy, Milan. Cathay Pacific is the dominant airline between the two countries with a 20.0% share of the 2012 traffic, followed by Emirates Airline (15.2%), KLM (12.5%), Etihad Airways (12.3%) and Qatar Airways (10.6%).

London Heathrow currently accounts for over one fifth of all passengers flying between Europe and the Philippines but is unlikely to be the destination in the UK capital to be served by PAL when it returns to Europe, due to its capacity constraints. It is understood that PAL has instead agreed a tentative deal to serve London Gatwick, although it remains its ambition to serve Heathrow should it be able to gain slots in the future.

The European Commission updated today the European list of airlines subject to an operating ban or operational restrictions within the European Union, better known as ‘the EU air safety list’ for the 21st time in July 2013. Following improvements in the safety situation in the Philippines, Philippine Airlines is the first airline from this country allowed back into European skies since 2010, although restrictions remain in force for all other operators.

Elsewhere, the Venezuelan airline Conviasa, which was banned in 2012 has also been permitted to resume its own flights to Europe, while progress was also noted in Libya, although the Libyan authorities agreed that Libyan Airlines would not be allowed to operate in Europe until they are fully recertified to the satisfaction of the European Union.

"The EU air safety list was created for the protection of European skies and citizens, but it can also serve as a wake-up call to countries and airlines in need to get their safety house back in order,” said Siim Kallas, Commission Vice-President responsible for transport. “Here we confirmed our willingness to remove countries and airlines from the list if they show real commitment and capacity to implement international safety standards in a sustainable manner. Beside Philippines, Venezuela and Mauritania, good signs of progress are also coming from a number of other African countries."