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Philippine Airlines needs more and stronger partnerships. All Nippon Airways tie-up is a small step

Analysis

Philippine Airlines (PAL) has forged a partnership with All Nippon Airways (ANA) in one of the first moves by the Philippine carrier since Lucio Tan's LT Group regained control in Sep-2014. The new codeshare should significantly improve PAL's position in Japan, the airlne's largest international market.

But the deal does not indicate a shift in strategy for PAL, which had been under control of Philippine conglomerate San Miguel since Apr-2012. The codeshare only covers the Philippines-Japan market and domestic connections in each country.

PAL needs stronger partnerships as well a much larger portfolio of codeshares. PAL particularly needs a partner for the US market with ANA a potential suitor.

PAL is instead moving forward with a risky plan to launch service in its own right to New York.

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