As Philippine Airlines ramps up service to Guam, United Airlines is asking U.S. regulators to proceed with caution.
Philippine Airlines (PAL) wants to offer PAL Express codeshare flights to Guam, effective March 5, 2020. Although PAL Express is owned by PAL, it operates as separate low-cost subsidiary, serving primarily domestic and shorthaul destinations. The codeshare would not result in more flights, but would make it easier for connecting passengers in the region to book PAL over United, which services Manila from its Guam hub nonstop and via Koror, Palau.
But this is not a simple story of United wanting to protect its own backyard. United is not even opposed to the new codeshare relationship…or so it says. Per Flight Global, what United is perturbed about is that it has been unable to expand in Manila by being denied “slots and other airport infrastructure necessary for its additional flight plans.”
While United is not opposed in principle to APC’s requested authority, United objects to the application to the extent it seeks benefits that are currently being denied to United and its customer base…
While United has been unable to execute its Manila growth plans, Philippine carriers have increased capacity to the US.
Given these facts, United believes that the slot and airport access challenges it has experienced at Manila must be rectified before the Department approves the APC application.
PAL has increased US-Manila flights by 25%, pushing seats up by 30% and available seat miles by 35%. This has been accomplished via PAL’s new A350 service to New York it began last year as well as increased capacity to Los Angeles and Manila.
Meanwhile, PAL says:
Approval will…enhance competition and improve the options available to travelers and shippers seeking service between the Philippines and Guam.
There’s no doubt that’s true. And now that United has moved to Terminal 3 at Ninoy Aquino International Airport, it can no longer complain that its airport facilities are dilapidated (compared to Terminal 1).
Furthermore, MNL is already a highly-congested airport with slot restrictions. Guam, on the other hand, has plenty of room for growth. So maybe this is just about competition after all…
CONCLUSION
I’d love to see more United service to Manila. With increased service from United and better terminal facilities, Guam customers will receive better pricing and encounter a better overall travel experience. However, I’m not sure United’s argument stands up to the facts.
Am I missing anything?
image: lasta29 / Wikimedia Commons
United should invest a little money in Philippine Airlines like fellow Star Alliance airline ANA has. ANA codeshares with Philippine Airlines on flights. This way United can execute their Manila plan. Getting access to flights outside of Manila on Philippine Airlines would be key for United growth plan.
Would love to see PAL under Star Alliance
So would I.
Flying a United in literally the back yard of worlds best airlines is lunatic, I wouldn’t.
Philippine Airlines is better than United? No way.
PAL has much better service than United. Ask United why they discontinued their morning GUM-MNL-GUM service….at one point it was several times per week. Guam based fleet size have anything to do with it?
My question would be is PA planning to reallocate slots to increase service to Guam or are these new flights entirely?
Because if PA is being awarded new slots and United is being ignored United would I think have a valid complaint.
My question is why hasn’t anyone taken in consideration that Clark Int’l Airport he’s only 50 miles north of manila and its wide open for air traffic slots? Start looking at the asian airlines that are flying from southeast Asia to Clark. It’s time for airlines from the USA to start non-stop service to Clark.
PAL service is way better United. In fact any Asian Airline is better than the big US 3..United, Delta and American.
How about initiating new direct air service between Guam and Cebu? The demand is there so why isn’t it being serviced?
Guam to Cebu would be a highly desireable route, one that would serve many and cut travel costs.
I remember flying to Philippines with united. One of their female flight stewardess was rude and racist for a first timer like me flying long flight. Never fly with united after that. Ive been in and out of the country for 3 years now but will never choose united again.
Yes Guam to Cebu yes yes
What is so hard for PAL or any major airlines not having to offer direct flights from US to Clark? And why does flights to Clark do expensive compared to NAIA! Why can’t PAL offer direct flights to Clark since most of the travelers are going home to North! Having Clark as a home destination will help curb traffic on the metro! Is there collusion going on!
And it means, United Airlines is not as competitive as compared to Philippine Airlines in terms of Service and network.
Fly to Clark