What now?
July 16, 2012
Low cost Carriers Cebu Pacific and Zest Airways wants to fly to Papua New Guinea (PNG) and are requesting the Civil Aviation Board (CAB) to cancel the unused entitlements granted to flag carrier Philippine Airlines (PAL).
CAB is set to hear the consolidated application of service for designation as
official Philippine carrier and allocation of entitlements to Papua New
Guinea under Route I on July 24.
Carmelo Arcilla, CAB executive director, said the two countries agreed
to amend their Air Services Agreement (ASA) last year in August by increasing entitlements to 600
seats per week from the current 150 for route I covering both capital cities.
The increase is equivalent to thrice a week service of Boeing 767 or four times a week service by Airbus 319. The sector is currently being served by Air Niugini thrice a week on a Boeing 767 plane.
Arcilla said a new route was also agreed in 2011 for all airports outside Manila at 1,500 seats per week under route II. Air Niugini is also flying Port Moresby twice a week to Cebu effective this Tuesday.
Arcilla said a new route was also agreed in 2011 for all airports outside Manila at 1,500 seats per week under route II. Air Niugini is also flying Port Moresby twice a week to Cebu effective this Tuesday.
Cebu Pacific and Zest Airways are both asking for 540 seat entitlements equivalent to thrice a week service on an Airbus 320 plane.
Arcilla adds that only one of the competing applicant airline may be given the frequency as it is uneconomical to grant one weekly flight for each of them.
CAB may also consider cancelling Philippine Airlines (PAL) rights for non-use, unless it flies Port Moresby or enters into a code share arrangement with Air Niugini.
The latter proposal was previously denied by PNG's Independent Consumer and Competition Commission (ICCC) for being anti-competitive.
The Philippines has a
total of 600 seat entitlements per week between Manila and Port Moresby, 300 of which have already been
allocated to PAL.
ICCC reported in 2010 that Port Moresby - Manila route was estimated to have an annual average growth rate around 14%. For the period 2003 to 2010, the growth rate was 193%, with traffic composition predominantly of Government and business travel, followed by holiday travel, those visiting friends and relatives (VFR) and other categories.
Good luck Zest & Cebu Pacific Air to get a service into Port Moresby.
ReplyDeleteI think it won't happen due to the monopoly that Air Niugini (ANG) has on its International routes except to /from Australia. I'm sure ANG would like to maintain this monopoly also on the Philippine routes too.
There is no other airline operating into Port Moresby except for the Australian operators Qantas & Virgin and the other local PNG operator, Airlines of PNG.
Cebu Pacific was awarded flight entitlements to Papua New Guinea equivalent to twice a week service, says CAB.
ReplyDelete“300 new seat entitlements has been allocated to Cebu Pacific,” said Civil Aeronautics Board (CAB) Executive Director Carmelo Arcilla.
Both Cebu Pacific and Zest Airways were seeking 540 seat entitlements equivalent to thrice (3X)a week schedule on Airbus A320-200 plane, but only 300 seats were granted by Papua New Guinea.
Zest Airways application was denied by CAB saying entitlements granted were not enough to be divided between the two airlines, and since it was Cebu Pacific that first applied to fly the route, the privilege was given to them ahead of Zest Air which filed application afterwards.
The remaining 300 seats are held by Philippine Airlines (PAL) which it said will be flown by PAL next year. Currently, only Air Niugini services Manila - Port Moresby flights thrice a week, and twice a week services for Cebu - Port Moresby route.