Loading

Philippines-Middle East market: Philippine Airlines resumes expansion as Cebu Pacific Air retreats

Philippine Airlines (PAL) is resuming expansion to the Middle East after adjusting its strategy for competing in the intensely competitive Philippines-Middle East market. The flag carrier is introducing business class on all Middle East routes after serving the market for nearly four years with all-economy aircraft.

PAL will be operating 33 weekly nonstop flights to seven destinations in the Middle East in Dec-2017, compared to 24 weekly nonstop flights to four destinations in Dec-2016. Seat capacity will be up 22%.

PAL will need to overcome intensifying competition from Middle East airlines, which will be operating 101 weekly flights to the Philippines in Dec-2017, compared to 76 frequencies in Dec-2015. PAL has benefited from Cebu Pacific’s recent suspension of three Middle East routes but the LCC’s decision to cut capacity to the region highlights how difficult it is for a Philippine carrier to be profitable in the Middle East market.  

This CAPA Premium Analysis article is 3,188 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com