PAL sees no demand to serve new markets

Despite pleas from the Cebu tourism industry urging airlines to open up direct flights to Europe, Russia, China, and other emerging markets, the country's flag carrier Philippine Airlines (PAL) sees no need to mount direct flights to these destinations.

PAL president and chief executive officer (CEO) Jaime Bautista said that the airline has not seen a considerable demand yet from these markets.

Bautista said Cebu’s need to connect with the European continent is now being served by Middle Eastern airlines like Qatar Airways, and opening a direct flight from Cebu to Europe at this time may not be as profitable.

He added that in Manila, there are about 60 direct flights by Middle Eastern airlines servicing the European countries, including Lufthansa, Air France, and British Airways, among others.

Russians, who are now deemed as one of the fast growing markets for the Philippines, specifically Cebu, is also being served by airlines that are offering direct flights to Hong Kong.

Bautista, however said, although it is tempting for PAL to consider opening direct flight from Cebu to Russia, the number of Russian tourists now discovering the Philippines as one of their favorite destinations is still not enough for the airline to invest on a Cebu-Russia direct flight.

"The problem is there are still a few Russians who regularly visit the Philippines and Cebu," he said.

 Russian travelers may travel through Hong Kong to get to Cebu and as of the moment, Cebu-Hong Kong direct flight routes can accommodate the growing Russian tourists going to Cebu, he said.

On the other hand, in an interview with the Ambassador of the Russian Federation Vitaly Y. Vorobiev, he said the Philippines could take advantage of the growing interest of Russians to travel in the Asian shores but it has to improve its accessibility and promotion to the wealthy Russian tourists.

Last year, a total of 20 million Russians took vacations in top favorite destinations such as Turkey, Egypt, Thailand, Malaysia and Vietnam. Vorobiev said the Philippines has great potential to increase its attractiveness to the Russian tourists if aggressive marketing campaign and air accessibility will be further developed.

As of 2007, an average of only 12,000 Russians visited the Philippines, compared to 150,000 Russians who go to Thailand for vacation and leisure escapades.

Also, while China is being eyed as the next biggest tourism market for the Philippines, Bautista said PAL still has to develop a good Manila-China traffic, before opening up a Cebu-China direct flight.

Instead, PAL is considering to open up a Cebu-Singapore direct flight noting a demand in this particular route.

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