News

Etihad signs agreement with Philippine Airlines

10 Jul 2014 by Clement Huang

Etihad Airways and Philippine Airlines (PAL) have signed a partnership that will see large reciprocal benefits for both airlines.

The agreement encompasses codeshare flights, loyalty programmes, lounge access, joint sales and marketing programmes, coordination of airport operations and the creation of a Philippines domestic air pass.

The two airlines will be placing their respective marketing codes on each other’s Manila-Abu Dhabi flights, making a total of 19 weekly flights between the two cities under the new codeshare agreement.

Etihad will also place its ‘EY’ code on PAL’s flights from Manila to 20 domestic destinations throughout the Philippines in the first phase of the partnership. This is expected to increase to 28 by the end of the year.

In addition, the two carriers are developing a joint air pass scheme that will enable overseas visitors to purchase one international flight to Manila and then add up to three additional sectors on PAL’s domestic network. The air pass is expected to go on sale from September 1.

Members of both carriers’ frequent flyer programs – Etihad Guest and PAL’s Mabuhay Miles – will also be able to enjoy reciprocal loyalty program benefits, such as mileage accrual and redemption, priority check-in and boarding, baggage handling and lounge access.

In light of the news earlier this week that a foreign airline was poised to acquire a stake in PAL, the partnership has led to speculation that Etihad could be the airline in question.

Such a move would be in-keeping with Etihad’s long-standing strategy of using codeshares and equity investments as a means to increase its market share in various airlines.

The airline already holds minority stakes in Air Berlin, Aer Lingus, Virgin Australia and Jet Airways, and is currently in the process of buying a 49 per cent stake in Alitalia.

The Gulf carrier has also recently announced the second quarterly figures of 2014, where it noted that a significant 23 per cent of passenger revenue was derived from its codeshare and equity alliance partnership.

However, according to online news site ANC-CBN, Philippine Airlines president and CEO Ramon S. Ang denied that Etihad was the potential foreign investor. More details are expected to be released soon.

For more information, visit etihad.com and philippineairlines.com

Clement Huang

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