Philippines Expands ASA with South Korea

Adds 10,000 seat entitlements between ICN and MNL

9 July 2024

The Philippines and South Korea have agreed to expand international air services between the two countries on July 4 allowing 10,000 seats more per week.

In a statement Monday, the Department of Transportation (DOTr) said the new memorandum of understanding (MOU) allowed an increase in capacity between Manila Ninoy Aquino International Airport (MNL) and Seoul Incheon International Airport (ICN) to 30,000 weekly seats. Previously, airlines between the two countries could operate up to 20,000 weekly seats on routes from Manila to South Korea.

After the two day consultation, limits on flights from Manila to other points in South Korea was removed. 

“The new agreement further liberalizes the third and fourth [freedoms of the air], without imposing limits on flights from Manila to all other points in South Korea,” the DOTr said.

South Korea is the Philippines’ main source of international visitors, with incoming Korean tourists reaching 1.4 million in 2023. 

According to the Philippine Department of Tourism, there had already been more than 680,000 arrivals from South Korea this year by May 2024, accounting for around one in four foreign tourists arriving to the Philippines.

DOTr said traffic between ICN and MNL has exceeded 25,000 per week, while traffic from South Korea has broken 28,333 passengers per week, and likely surpass the agreed seats before the end of the year.

The updated arrangement further liberalizes third and fourth freedoms, allowing more passenger traffic between the capital cities and increasing overall connectivity. Additionally, flights from points outside Manila to all points in South Korea remaining unrestricted should enhance regional connectivity and benefit local economies in both countries.

The Philippine delegation also proposed an amendment to the two countries’ air transport agreement that would allow the Philippines to designate its airlines based on the airline’s principal place of business and place of incorporation in the Philippines, which refers to AirAsia operations in the Philippines. They also plan to discuss South Korea’s proposal to permit third-country code-sharing arrangements, to accommodate Delta airlines request.

“Though an agreement on the matter was not reached, the two delegations agreed to further discuss the same, along with Korea’s proposal to allow third country code-sharing arrangements, in the next round of consultations,” the DOTr said.

Jeju Air is the largest provider of capacity between South Korea and the Philippines at present, accounting for a 20.4% share of all seats. Korean Air has a 14.9% share, followed by Philippine Airlines on 13.9%. Asiana Airlines (12.5%) and Jin Air (9.7%) complete the top five.

There are 11 nonstop routes currently operating in the market—five of which are from ICN to Cebu, Clark, Kalibo, and Tagbilaran under unrestricted flights, all flown by Jeju Air. While Asiana and Korean air flies Manila and Cebu.

On the other hand MNL is connected to two other points in South Korea through services from Busan and Cheongju which according to the latest bilateral is also unrestricted, being flown by Jin and Jeju Air.

Currently, there are 452,517 available seats between the two nations capital for July 2024, compared with 553,300 at the same time in 2019. More flights are recorded in secondary gateways by both countries.

The latest MOU replaces the previous agreement signed in 2017.