New Air Services Agreement between Philippines and Malaysia

Posted 10/06/2011

The Philippines Civil Aeronautics Board has agreed to open the skies on any routes between the country and Malaysia, with the exception of flights between the two capitals, Manila and Kuala Lumpur.  After these successful negotiations it will now turn its attention to update existing agreements with Hong Kong and Japan before the end of the year.

Under the revised deal airlines from the two countries will be able to offer flights from any two points outside of the capital in a move that will certainly enhance international tourism, boost investment in the regions and foster trade and generate employment.  The new agreement will also make more capacity available between Manila and Kuala Lumpur, increasing the seat threshold from 2,300 per week to 2,520.

Last year an estimated 478,000 O&D passengers travelled between the two countries, a market dominated by AirAsia (44.6 per cent) followed by Cebu Pacific Air (26.7 percent) and Malaysia Airlines (21.3 per cent).  The busiest routes between the two countries are AirAsia’s flights from Diosdado Macapagal International to Kota Kinabalu and Kuala Lumpur (22.2 per cent), followed by the numerous operators flying between Manila Ninoy Aquino International and Kuala Lumpur International Airport.

Last year the Philippine Government completed bilateral bilateral air talks with China, Singapore, Qatar, South Korea, among others and is working with international partners to help boost visitors to the country.  The goal of the government is to meet its target of around $4.6 billion tourism revenues by 2016, contributing 6.35 percent to gross domestic product.

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