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Philippines working on code-share deals to expand US services

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THE PHILIPPINES is working on code-sharing agreements with South Korean and Japanese carriers to expand connectivity between Manila and the US, the Civil Aeronautics Board (CAB) said.

“We just completed air talks with Korea maybe three weeks ago. And then, we are asking for talks with Japan… Some do not have immediate prospects yet,” CAB Executive Director Carmelo L. Arcilla told reporters on the sidelines of an event last week. 

Mr. Arcilla said CAB is in discussion with South Korea for the possibility of a third-country code-sharing agreement to facilitate flights between the US and Philippines.

A third-country code-sharing agreement involves carriers in two countries selling flights on a third country’s airline.

“More than what is necessary, we have a liberal amount of traffic in South Korea. What is being discussed right now is not about the traffic rights but commercial opportunities like third-country code sharing,” Mr. Arcilla said. 

Mr. Arcilla said the Philippine agreement with South Korea will allow seamless travel between the US and the Philippines.

“They were given the right to cooperate with US carriers because… geographically Korea is a very good place for US carriers to stop,” Mr. Arcilla said, adding that South Korean carriers can then carry passengers to Manila. 

“The US market has a very big potential; that agreement with South Korea will enhance the commercial capability of US carriers operating in the Philippines,” Mr. Arcilla said.

Last year, airlines here said they are planning to leverage the increased weekly capacity between the Philippines and South Korea by introducing new routes and possibly expanding services.

In 2024, the Philippines and South Korea signed a bilateral air service agreement which allows an increase in seat capacity for flights between the two countries.

Under the new agreement, the Philippines and South Korea will have an additional 10,000 seats per week to 30,000.

The CAB is working to secure a similar third-country code-sharing agreement with Japan to make it possible for US airlines to operate in the Philippines, Mr. Arcilla said.

Further, the CAB is also in the early stages of negotiating air service agreements with Australia, India and Argentina, Mr. Arcilla said, noting that nothing has been finalized yet at the moment.

Last week, Air India announced the launch of direct flights between Delhi and Manila by October. — Ashley Erika O. Jose

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