New Philippine-Macau Air Agreement Signed

A Memorandum of Understanding was signed last month between the Philippines and Macau enabling the two countries to develop an air service agreement that would increase the number of passengers travelling between the two countries.

macau philippines
Photo Source: Wikimedia
According to Carmelo Arcilla, Executive Director of the Civil Aeronautics Board, the new agreement increases the number of seat entitlements between Manila and Macau from the current 3,500 to 4,500 per week. In addition, an unlimited number of seat entitlements will be provided between Macau and all other international airports in the Philippines. 
The new agreement was in response to the requests of budget carriers Zest Air and Southeast Asian Airlines for more entitlements between the two destinations. Zest Air has been applying for a new direct flight to Macau since 2012 but has been plagued by scheduling issues. Following the strategic alliance between Air Asia and Zest Air, the airline announced that it would be launching a new direct flight from Manila to Macau in the near future. Air Asia briefly operated direct flights between Clark and Macau but was forced to cancel them due to poor demand.

Both Philippine Airlines and Cebu Pacific currently operate flights between Manila and Macau. Cebu Pacific currently holds 1,253 seat entitlements while Philippine Airlines holds 1,092 seats entitlements per week. Candace Iyog, Cebu Pacific's Vice President of Marketing & Distribution, indicated that the airline would be seeking additional entitlements following the signing of the new agreement.

Macau is the largest gambling hub in the entire world with revenues reaching $38 billion in 2012 alone. "Macau is a small but key and important market for the Philippines, being a gateway to Hong Kong and China. There are about 17,000 Filipinos working in Macau," said Arcilla. "Aviation is the lifeline of commerce and tourism, so when you expand aviation and flights, you expand trade, we expand tourism."

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