MANILA, Philippines–Philippine Airlines and Japan’s All Nippon Airways (ANA) sealed a so-called code-share deal that would allow them to fend off threats from budget airlines.
It was PAL’s second such agreement this year after expanding a code-share partnership with Etihad Airways.
The move, which aviation consultancy CAPA-Center for Aviation said would give PAL and ANA a combined 67 percent of the Philippine-Japan market, comes amid stiff competition provided by budget carriers like Cebu Pacific Air, which entered the Japan market last March. The Philippine units of Malaysia’s AirAsia Bhd said they would start flights from Manila to Japan this year.
ANA said in a statement that its partnership with PAL, which included reciprocal frequent flyer programs starting Oct. 26, would give their respective passengers more choice and flexibility.
Under the code-share, ANA will add its “NH” designator code to Philippine Airlines-operated flights not only between Japan and Philippine but also domestic flights within the Philippines.
Philippine Airlines will also add its “PR” designator code to flights between Japan and the Philippines and domestic flights within Japan operated by ANA.
The total number of flights between Japan and Philippines operated by ANA and Philippine airlines will be 74 a week, ANA said. A spokesman for PAL did not immediately respond to a request for comment.
“Competition between the Philippines and Japan has intensified significantly over the past year, driven primarily by expansion of PAL rival Cebu Pacific Air. Forging a partnership with ANA is a sensible strategic response by PAL as it will help PAL maintain and leverage its leading position in the Philippines-Japan market,” CAPA yesterday said in a report.
CAPA said that, with the alliance between PAL and ANA, the remaining 33 percent of the Philippines-Japan market would be split between Japan Airlines (12 percent), Cebu Pacific (10 percent), Delta Airlines ( 9 percent) and Jetstar Asia (3 percent).
The think tank added that PAL’s partnership with ANA was consistent with the airline’s strategy to grow its presence through code-share deals, adding that PAL needed to secure similar agreements to expand in the United States and Europe.