Local airlines turn back home

The country's airlines are turning to domestic routes in the face of tight competition in foreign destinations and high jet-fuel costs. Last week, Philippine Airlines (PAL) unveiled its new low-cost unit, PAL Express, which will fly mainly to the country's smaller islands, routes that it had previously abandoned when it entered into corporate rehabilitation. PAL Express will operate a fleet of nine small aircraft from Cebu, including 50-seater Bombardier Q300s and six 76-seater Q400s, which PAL will acquire this year at a cost of $100 million. Data from the Civil Aeronautics Board shows that that the number of domestic passengers in 2007 rose 22.7 percent to 10.38 million from 8.46 million passengers in 2006. In 2007 the other major local airline, Cebu Pacific, announced its domestic expansion by acquiring 14 ATR72-500 aircraft worth more than $250 million. Meanwhile, two other smaller airlines, Asian Spirit and Seair, are consolidating their operations to become stronger and survive competition.

in Manila Times by Darwin G. Amojelar
Aprial 21, 2008
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