MANILA, Aug. 27 (PNA) — Flag carrier Philippine Airlines (PAL) on Thursday expressed apprehension anew over ongoing air talks between the Philippines and the United Arab Emirates (UAE).
In a statement, PAL stressed that these talks have consequences on its investments in launching new routes to the Middle East, Europe and the US east coast if the Philippine panel grants the UAE additional entitlements.
“Any additional entitlements to UAE carriers would create a distortion in the market and could possibly lead to PAL pulling out of these new routes,” PAL said.
To recall, PAL re-connected Manila to four destinations in the Middle East, to London and New York within the last two years.
PAL meanwhile reiterated its appeal on the Philippine panel of the air talks to resist any pressure to grant additional entitlements to UAE carriers and instead challenge them to mount direct flights to airports outside Manila.
Aside from PAL, Delta Air Lines, United Airlines and American Airlines earlier formed an alliance (Partnership for Open & Fair Skies) to compel the US government to investigate the multi-billion dollar subsidies enjoyed by Gulf carriers.
Furthermore, US-based Air Line Pilots Association (ALPA), which represents more than 52,000 pilots in the US and Canada, earlier stated that Middle East carriers’ subsidies are undermining Open Skies principles.
ALPA president Capt. Tim Canoll in a statement said that the subsidies help Qatar Airways, Etihad Airways, and Emirates Airline purchase aircraft in numbers far beyond what is needed to serve current passenger demand.
“It’s obvious that the subsidized aircraft are being purchased to siphon off existing passengers rather than creating new ones—meaning U.S. airlines will lose business and that U.S. jobs are threatened,” Capt. Canoll said.
A number of European countries including Netherlands, France, and Germany have also expressed similar concerns at the undue advantage by Gulf carriers. (PNA)