DoTC to ask KLM to reconsider move to stop Manila-Amsterdam flights The government will try to dissuade Air France-KLM from halting its Manila-Amsterdam route—the country’s last direct service to Europe. The airline decision to stop direct flights between the two cities, announced over the weekend, was prompted by the government’s insistence on charging a 3-percent common carriers tax and a 2.5-percent gross Philippine billings tax on cargo and passenger revenues originating from the country. The same taxes, together with increasing competition from heavily subsidized Middle Eastern competitors, have forced other European airlines out of the Philippine market over the last decade. Transportation and Communications Secretary Manuel “Mar” Roxas II said he would discuss the matter with the foreign carrier. “We will talk to them,” Roxas said, when asked about the matter. Air France-KLM currently flies daily between Manila and Amsterdam. By the end of the month, the company said it would reduce flights to six a week. By April 2012, flights going directly to Amsterdam will cease, and instead have a Hong Kong detour. Having a stopover in Hong Kong means less tax because the duty is only charged for revenues earned for flights directly from the Philippines. The government said it would push for a “change of heart” on the part of the Air France-KLM officials in the Philippines. “This is a sad turn of events if it ever pushes through,” Civil Aeronautics Board (CAB) executive director Carmelo Arcilla said in an interview. “We need direct flights to support our tourism sector.” Arcilla said tourist arrivals from Europe have not grown significantly over the past decade, settling at around 300,000, or 10 percent of the total, at the end of 2010. He said increased air services to Europe would help the government attain its goal of doubling tourist arrivals to six million by the end of President Aquino’s term in 2016. Data released by the CAB on Monday showed international air passenger traffic into and out of the Philippines grew by 10 percent in the first half of 2011 over the same period in 2010. The total number of incoming and outgoing passengers grew to 8.035 million from 7.269 million in the first six months of 2010. Flag carrier Philippine Airlines (PAL) remained the top carrier with 2.044 million passengers for the period, up 4.7 percent year on year. This was followed by Cebu Pacific, which carried 1.3 million passengers, or 28 percent up from last year. Occupying the 13th slot was Air France-KLM, which carried 129,056 passengers in the six-month period, down 9.6 percent from the year before. Arcilla said the approval of House Bill 3928 filed by Batangas Representative Hermilando Mandanas, seeking to exempt foreign airlines from the carriers tax, could help in resolving the situation. The House ways and means committee has given its approval for the bill, but the proposal has yet to progress in Congress. Source:- http://business.inquirer.net/25285/...onsider-move-to-stop-manila-amsterdam-flights
F*** Well we knew it was coming, that's me stuffed just as well I did not buy extra Flying Blue miles, I might as well burn the ones I have.
You have to admit that the Philippines Government has a history of shooting its own foot........... And it is done with flair and aplomb.......... I wish I could afford to fly SIA again.......... Top notch airline.... Just cannot beat it..........
Do they mean that the existing 777's will fly to Hong Kong, stop for no reason other than saving money, then take off again and resume the journey to Manila on the same Aircraft? This would incur extra landing charges for KLM at Hong Kong, money that probably would offset the savings but would spite the Philippine authorities. Or do they mean a transfer to Philippine Airlines or some other carrier at Hong Kong? That would be a pain in the ar*e as the main reason I love that flight is that it is direct and it also creates baggage problems as the weight limits will be lower on the second segment. My best hope for the next couple of years was to use accrue some new miles with a paid flight every year and to try to get promo flights at 50% miles every now and then, to stretch the remaining miles I had.
Good article. http://www.manilastandardtoday.com/....com/newreply.php?p=15379&noquote=1october/19 Another good one :- http://www.abs-cbnnews.com/business/10/18/11/klm-absolutely-not-happy-ph They get taxed on the value of the ticket so a really long haul flight like AMS-MNL will be coming in at 20 to 30 quid in revenue per pax. Interesting echo, the line in that second article about how much KLM had helped the Phils over the years. Also an important reminder to them that they are kicking their own OFW's in the teeth as the majority of passengers on KLM flights are Filipino.
Incredible how the Philippines government have this problem "Arcilla said tourist arrivals from Europe have not grown significantly over the past decade, settling at around 300,000, or 10 percent of the total, at the end of 2010.", yet they wont do sod all to encourage tourism by reducing the fees. I'd say if anything, the enforced HK stopover is a good thing as there is so much choice available on the direct UK-HK route (BA, CX, Qantas, NZ), but not much good if like me you prefer KLM as they serve most regional airports in the UK - Cardiff for example. The extra expense of driving and parking at Heathrow or Manc is going to cost more than the savings on that direct UK-HK route. The only other option we've got where I live is Emirates by Birmingham-Dubai-Manila, ideal as the Aberystwyth train goes right into the airport at Brum.
I fly back on March 26th.. So I just about make it. Though had I flew back a day later I would have had a 12 hour wait in Hong Kong.
They are still selling direct flights well into May next year? And the alternative routes booked direct with KLM via Hong Kong or Guangzhou are double the price
