Etihad Not in Talks with Philippine Airlines

Etihad Airways reported last week that is not currently in discussions with Philippine Airlines over a possible equity stake in the Philippine flag carrier. Both Lucio Tan and Ramon Ang had previously expressed on behalf of Philippine Airlines a desire to take on a foreign carrier as a strategic equity partner.

etihad manila philippines
Copyright Photo: Angelo Agcamaran/PPSG
But according to James Hogan, President and CEO of Etihad Airways, the carrier currently has no plans of investing in Philippine Airlines. "We're not having any talks with Philippine Airlines," said Hogan at a press conference where Etihad announced a €560 million investment in European carrier, Alitalia. He added that, "If it integrates with our network, has minimal overlap, and we believe we can see synergies, we'll consider it."
Although Philippine Airlines continues to seek an equity investor as it attempts to turn the airline around, the national flag carrier presently has its own internal battle for ownership to resolve as Lucio Tan and Ramon Ang of San Miguel Corporation battle for complete control of the carrier. While an outcome is expected by the end of this month, it is unlikely that any new partnerships with foreign carriers will be revealed until this issue is resolved.
Earlier this year, Etihad Airways and Philippine Airlines signed a strategic partnership that would involve both carriers collaborating in a number of areas including sales and marketing, cargo, frequent flyer programs, passenger lounges, airport operations, and codeshare flights among other initiatives.

"What is particularly significant about the new commercial arrangements is that our millions of customers are the winners," said Hogan. "From a greater choice of passenger and freight codeshare destinations, to reciprocal loyalty program benefits, and more efficient terminal operations -- this is a truly customer-centric proposition."

Given the nature of existing collaboration between Philippine Airlines and Etihad Airways, it would seem that there are sufficient synergies between the two carriers to make PAL an ideal fit for an Etihad investment. If Philippine Airlines wants to expand its presence in Europe, it would be much more practical to codeshare with Etihad rather than attempt to fly its own metal. But whether this partnership will develop further remains to be seen, at least, not until the ownership dispute between San Miguel and Tan are resolved.

Etihad Airways currently operates two daily flights between Manila and Abu Dhabi using a 412-seat Boeing 777-300 aircraft, while Philippine Airlines flies from Manila to Abu Dhabi five times weekly using a 368-seat Airbus A330-300.

6 comments:

  1. Why does PAL name drop just to disappoint the public later. First Ang hinted that ANA might partner then most recently Etihad. Makes PAL management sound like they don't know what they are doing. Don't forget the failed Cambodia Airlines failed joint venture. PAL must focus on the basics, service, service, service then the equity partners will come knocking on their their door. No synergies indeed if PAL can't offer anything to the partner especially with this internal battle going on between Ang and Tan.

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    1. I wonder what happened to that foreign investor that Ang had so confidently said was going to invest in PAL. I have a feeling that both ANA and Etihad backed out.

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  2. When the owners of PAL are squabbling, who would want to deal with them when the work environment is like that. I agree that one should buy the other. And I hope the one with the best idea on how to elevate PAL to the level of at least Royal Thai Airways (4-star) will prevail. Good Luck PAL

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  3. dissapoint the public how?

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    1. I love PAL so when the leader of PAL says that a more successful airline like ANA or Etihad will invest in the PAL then doesn't ...what a big disappointment! Mr. Ang, just shut up and don't say anything about partners or joint ventures until everything is confirmed. Makes PAL look like a jilted bride every time an equity partner doesn't materialize.

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