The Landmark Of The Etihad Deal

PAL's Middle East Connection

3 July 2014

Etihad Airways (ETD) and Philippine Airlines (PAL) signed an enhanced cooperation agreement in April through a classified Memorandum of Understanding (MoU) which could potentially open doors to PAL having access to the Middle East market including Beirut in Lebanon and Amman, Jordan while providing Etihad access to connection flights in the Philippines.

Commercial benefits to both airlines and their customers includes code sharing, frequent flyer reciprocity, airport lounge access, special pro rate and air pass agreements, cargo cooperation, among others.

Etihad said the Memorandum of Understanding (MoU) could lead to increased flights from Abu Dhabi to Manila, as well as the possibility of expanding code-share agreements to the 20 regional airports within the Philippines.

Currently, Air Services between the two countries cap capacity at 28 flights daily to Manila, 14 flights to Clark and 14 flights to Cebu. Twenty one daily flights are serviced by Emirates Airlines, seven by PAL Express and Cebu Pacific while the remaining fourteen entitlements went to Etihad and the last seven by Philippine Airlines.

In 2006, Etihad Airways launched services between Abu Dhabi and Manila with four weekly Airbus A330-200 flights. The two airlines entered into a code-share agreement in 2007 where Etihad flew both entitlements with Boeing 777-300ER. 

The agreement expired in October last year and PAL flew from Manila to Abu Dhabi initially at five times a week in 2 October 2013 before increasing it to daily flight using Airbus 330-300 after new agreement was reached in April 27, 2014.

Etihad’s President and CEO James Hogan said the agreement was an “important milestone” in the long-standing relationship between the two carriers.

PAL President Ramon Ang said the partnership “will go a long way in providing our combined customer base a much more enhanced set of travel options.”

“This also comes at an opportune time for PAL which is in the thick of a fleet modernization and expansion program that will see the flag carrier pushing further not only into the Middle East but also on other parts of the globe using a modern fleet of aircraft,” Ang added in a statement.

He noted that closer collaboration in the local and global market arena will “enhance the competitiveness and appeal of our offering and deliver an unrivaled customer proposition in the UAE, in the Philippines and abroad."

PAL President Ramon Ang and Etihad Airways president and chief executive James Hogan said the partnership seeks to make the two brands the first choice for the more than 700,000 UAE-based Filipinos who account for much of the traffic on the Abu Dhabi-Manila route each year.

Last year, the Abu Dhabi-Manila route was Etihad’s second busiest destination next to Bangkok with 547,68 passengers. The MoU added PAL flights to make it thrice-daily flights between the capitals.


  1. Good for pal customers, the etihad logo looks luxury and quality, and looking at pals gives me a feeling of outdated and cheap.. lets hope this helps pal to gain more profits.

    1. You want luxury and quality? Make your own airline or buy your own plane. Please comment wisely about the topic and not soley on the airline itself. Pinoys tlga.

  2. Etihad Airways and Philippine Airlines (PAL) officially launched today the "strategic partnership agreement" that marks a new era of cooperation between the flag carriers.

    Under the Initial agreement, the airline partners will place their respective ‘PR’ and ‘EY’ codes on each other’s Manila-Abu Dhabi flights to operate a combined total of 19 weekly flights between the two capitals. Etihad Airways will also place its ‘EY’ code on Philippine Airlines flights from Manila to 20 destinations throughout the Philippines in the first phase, increasing to 28 during 2014.The second phase will cover Philippine Airlines placing 'PR' code on Etihad Airways flight from Abu Dhabi to the middle east.

    Members of Philippine Airlines Mabuhay Miles Frequent Flyer Program and Etihad Airways Etihad Guest will enjoy reciprocal loyalty program benefits including miles earn and redemption, priority check-in and boarding, baggage handling and lounge access across both networks.

    During September and October, double miles will be awarded to Etihad Guest members travelling on any Philippine Airlines flight and to Philippine Airlines Mabuhay Miles members travelling on Etihad Airways flights.

    The agreement also extends the use of Etihad Airways premium lounges in Abu Dhabi and London Heathrow to Philippine Airlines Business Class guests and Mabuhay Miles Million Miler, Premier Elite and Elite members when traveling on Philippine Airlines’ Manila-Abu Dhabi and Manila-London Heathrow flights. This comes into effect from 1 August for the Abu Dhabi lounges and 1 November for London Heathrow.

    On the cargo front, the airlines have signed a letter of intent for an extensive capacity agreement based on the bellyhold of all passenger services between Abu Dhabi and Manila, as well as connecting airfreight into Africa, Australia, the Middle East and South East Asia. The airlines will work on the joint development of value-added cargo products such as priority and pharmaceuticals across their combined networks.

    They are also developing a joint air pass scheme which will enable overseas visitors to purchase an international flight to Manila and up to three additional sectors on Philippine Airlines’ domestic network. This will enable travellers to visit more of the Philippines and provide a significant boost to the local tourism industry. The air pass is expected to go on sale by 1 September 2014.

  3. Etihad Airways and Philippine Airlines code share services:

    ETIHAD operated by Philippine Airlines
    Manila – Abu Dhabi
    Manila – Bacolod
    Manila – Butuan
    Manila – Cagayan de Oro
    Manila – Cebu
    Manila – Cotabato
    Manila – Davao
    Manila – Dipolog
    Manila – Dumaguete
    Manila – General Santos
    Manila – Iloilo
    Manila – Kalibo
    Manila – Laoag
    Manila – Legaspi
    Manila – Ozamiz
    Manila – Puerto Princesa
    Manila – Roxas
    Manila – Tacloban
    Manila – Tagbilaran

    Philippine Airlines operated by ETIHAD
    Manila – Abu Dhabi