oneworld recently invited Philippine Airlines to become the 16th member of the global airline alliance. This video takes a look at what it means for theairline, customers in the Asia-Pacific, and the Philippine aviation industry.
For years Philippine Airlines was the “odd man out” among the major airlines in Southeast Asia when it came to being part of a major global airline alliance. The prospect and merits of Philippine Airlines joining either Star Alliance, oneworld, or SkyTeam had been a topic of discussion in the global aviation community. While Philippine Airlines continued to build its network, it witnessed the growth of flights operated by prominent alliance members to or from the Philippines. Things have now changed as the Philippine flag carrier recently received an official invitation to become a part of the oneworld alliance. Philippine Airlines’ entry into oneworld is expected to open up new opportunities for the airline, oneworld, and customers traveling to or from the Philippines.
Invitation Received, Invitation Accepted
oneworld’s official invitation for Philippine Airlines to join the airline alliance was announced during the recent International Air Transport Association (IATA) 82nd Annual General Meeting in Rio de Janeiro, Brazil. The Philippine flag carrier was invited as a member-designate by the oneworld Governing Board which is comprised of the chief executives of all the current member airlines. When it joins the alliance as a full member sometime in 2027, it will be the 16th member and the second from Southeast Asia after Malaysia Airlines.
Image: oneworld alliance network map. Credit: oneworld
According to oneworld and Philippine Airlines, the addition Philippine Airlines will add 31 unique destinations into oneworld’s network within the Philippines and beyond. It also helps grow the alliance’s network to support customer demand across Asia, North America, Europe, the Middle East, and Australia, complimenting existing services currently offered by oneworld members. For passengers, it will unlock smoother, connected travel experiences enhanced by efficient transfers, ideal schedules, and oneworld priority privileges including lounge access and dedicated check-in counters at major hubs. Philippine Airlines’ customers will have access to oneworld’s global network covering nearly 1000 destinations across 170 countries and territories worldwide.
During the announcement ceremony, PAL Holdings, Inc. President Lucio C. Tan III was quoted saying: “This is a defining and transformative moment for Philippine Airlines.”
“Becoming a member of the oneworld Alliance and strengthening Southeast Asia’s representation within the group significantly brings the Philippines and the region closer to the world like never before. Together with our partners, we will deliver greater choice, consistent journeys, and a world-class travel experience that reflects the warmth of Filipino hospitality.”
oneworld’s Future Philippine Hub
While access to Philippine domestic destinations will be pleasant addition to the oneworld network, the biggest gains for the alliance is Philippine Airlines’ routes to the US and Canada. Currently operating flights to 2 cities in Canada, 4 cities in the US Mainland, along with Hawaii and Guam in the Pacific, Philippine Airlines has the most routes crossing the Pacific to North America by an ASEAN-based airline.
With the addition of Philippine Airlines and its hubs at Manila and Cebu, oneworld gains a major hub at a country that happens to be one of the fastest growing economies in ASEAN. Leading up to the announcement, Philippine Airlines had been forming partnerships with oneworld members such as Alaska Airlines, American Airlines, and Qatar Airways. Currently limited to cover select routes, or frequent flier transactions such as points redemption, a full membership in oneworld covers more aspects of airline partnerships which will benefit customers traveling to/from the Philippines as well as those making connections at Manila or Cebu. oneworld will have two airlines representing the alliance in ASEAN where Star Alliance is represented by the Singapore Airlines/THAI Airways duo and Garuda Indonesia/Vietnam Airlines for SkyTeam.
Excluding Philippine Airlines, Star Alliance is currently the dominant player among the airline alliances in the Philippines with 12 airlines operating 21 routes from Manila, Clark, and Cebu. SkyTeam is behind with 7 airlines operating 18 routes from Manila and Cebu. oneworld currently has the smallest presence in the Philippines with 6 airlines operating 11 routes. However, with Qatar Airways’ flights to Clark and round-robin flight connecting Doha to both Cebu and Davao it serves the most hubs in the Philippines with four. Note that Star Alliance’s presence in the Philippines will go down to 11 airlines when Asiana Airlines becomes fully integrated into Korean Air before year’s end.
The current group of oneworld airlines in the Philippines don’t significantly add new routes to those already served by Philippine Airlines, but oneworld will be the dominant airline in the country. It opens up new connecting options not just in Manila but also in Cebu, Clark, and Davao. Travelers visiting the Philippines who are members of oneworld members’ frequent flier programs can enjoy the same benefits and seamless connections when island hopping throughout the Philippines to destinations such as Caticlan (Boracay), Siargao, and Bohol. The same benefits will also be extended to those making connections between international flights operated by Philippine Airlines and oneworld members operating in Manila which includes Malaysia Airlines, Oman Air, Cathay Pacific, Qatar Airways, Qantas, and Japan Airlines (JAL).
While access to Philippine domestic destinations will be pleasant addition to the oneworld network, the biggest gains for the alliance is Philippine Airlines’ routes to the US and Canada. Currently operating flights to 2 cities in Canada, 4 cities in the US Mainland, along with Hawaii and Guam in the Pacific, Philippine Airlines has the most routes crossing the Pacific to North America by an ASEAN-based airline. It exceeds Singapore Airlines services to 5 points in the US which also includes two Fifth-Freedom routes operated on the Tokyo Narita-Los Angeles and Frankfurt New York-JFK routes, and Vietnam Airlines’ Ho Chi Minh City-San Francisco route. It is a contrast to Malaysia Airlines which does not have any routes to North America. This network is expected to be strengthened further with the resumption of flights to Saipan and the launch of a new route to Chicago later this year.
Among the oneworld members, trans-Pacific connections to Southeast Asia can be made at Tokyo with American/Japan Airlines (JAL) or Hong Kong with Cathay Pacific. Though the Philippines opens up more opportunities to make connections between North America and Southeast Asian cities such as Kuala Lumpur, Singapore, and Bangkok via Manila. oneworld will have three trans-Pacific hubs in Manila, Hong Kong, and Tokyo. While Singapore Airlines has its non-stop flights between the US and Singapore, Star Alliance’s primary trans-Pacific hubs are at Tokyo (Haneda/Narita) served by the United/ANA joint venture along with EVA Air at Taipei. SkyTeam heavily relies on the Korean Air/Delta joint venture via Seoul Incheon plus China Airlines at Taipei.
Note: Not including current Star Alliance member Asiana Airlines in South Korea as it will be phased out and integrated into Korean Air by year's end.
Benefits for Philippine Airlines’ Customers
I believe the New Manila International Airport project opening hopefully before the end of the decade will allow for oneworld to expands its presence and offer special facilities such as a world class airport lounge for premium fliers.
The future oneworld hub of the Philippines is expected to bring new benefits to oneworld and Philippine Airlines. Philippine Airlines can offer connections beyond their current operations throughout the world, which would help in return to boost passenger traffic on its own operations including new routes that will be launched. Beyond Manila, connections can be made at other oneworld hubs such as Kuala Lumpur, Tokyo, Hong Kong, Los Angeles, Seattle, and Doha. This is expected to grow with new routes such as the upcoming Manila-Chicago service by Philippine Airlines. oneworld carriers can align their flights to/from the Philippines with their future Philippine-based counterpart to better compete with Star Alliance and SkyTeam.
Members of Philippine Airlines’ frequent flier program Mabuhay Miles are expected to greatly benefit from the airline joining oneworld. Services will eventually be aligned for Mabuhay Miles members across the world to access airport lounges of partner airlines, earning and award redemption, and other airport services. Not only will the airline’s current frequent fliers benefit, but it also provides the airline a new selling point to promote new member sign-ups. An increase in Mabuhay Miles sign-ups can open new opportunities for the program across the world.
As Philippines Airlines celebrates its invite into oneworld, the airline must now work to ensure its systems are aligned with the airline alliance. Booking systems should enable customers to create itineraries that includes connections on other partner airlines. The website should also enable ease of booking award redemption across the global network. Facilities and services at Manila and Cebu need to be updated to better serve passengers making connections. These updates both at the airport and online will need to meet oneworld’s standards.
While Philippine Airlines works to meet oneworld’s standards leading up to its integration in the alliance next year, the Philippine aviation industry will need to make continued upgrades at airport facilities in the country. To the credit of the Philippine government and airport operators, facilities have been upgraded at airports such as at Manila and Cebu. I believe the New Manila International Airport project opening hopefully before the end of the decade will allow for oneworld to expands its presence and offer special facilities such as a world class airport lounge for premium fliers. Philippine Airlines does not have much control in development the New Manila Airport, but it would allow for the rapid expansion of its flights as it welcomes more new aircraft in the future. It would also further boost Manila’s standing as a major hub not just for oneworld but also for the Asia-Pacific.
Realignment of Partnerships
It is not uncommon for airline alliance members to have partnerships outside their own alliance, but we can expect JAL will take over as Philippine Airlines’ main partner in Japan.
Image Credit: All Nippon Airways (ANA)
Philippine Airlines joining oneworld made major headlines, though left out of the discussion has been another major player with a stake in the airline: Japan’s All Nippon Airways (ANA). ANA currently has a 4.5% stake in Philippine Airline’s parent company PAL Holdings and maintains a strategic partnership which includes codeshare flights, frequent flier benefits, and coordination in airport operations. As Philippine Airlines joins oneworld, it is expected that there will be expanded coordination with ANA’s main rival and oneworld member Japan Airlines (JAL).
ANA has two options to address the situation: sell its stake and exit from PAL Holdings, or maintain the relationship. The first option is the most likely to play out as the Japan-based carrier has seen its stake in PAL Holdings decrease after Philippine Airlines’ Chapter 11 reorganization during the pandemic years from 9.5%. Already well represented in Japan, Taiwan, Thailand, and Singapore, there was not much room and reasons for Star Alliance to give an invite to Philippine Airlines. As Philippine Airlines and JAL open their partnership and coordination, there may still be a chance of ANA maintaining a relationship but reducing its involvement with the Philippine flag carrier. It is not uncommon for airline alliance members to have partnerships outside their own alliance, but we can expect JAL will take over as Philippine Airlines’ main partner in Japan.
As ANA and Philippine Airlines address their relationship, oneworld membership is just a part of Philippine Airlines’ overall strategy when it comes to its global partnerships. The airline will also continue to maintain various interline and codeshare partnerships with Singapore Airlines, as well as SkyTeam members Saudia, China Airlines, and Garuda Indonesia. Philippine Airlines will make partnerships covered by oneworld a priority, but we can continue to see the company update and maintain partnerships with airlines outside of the alliance.
The Work Ahead
Before oneworld officially invited Philippine Airlines to join the alliance, the prospect of the Philippine flag carrier joining one of the big 3 airline alliances was a major discussion topic. Among the talking points that could have been made in the past was Star Alliance was already well represented in Southeast Asia with Singapore Airlines and THAI Airways. Cathay Pacific would object to Philippine Airlines joining oneworld due to proximity to Hong Kong. I’ve also often referred to Philippine Airlines as the odd man out when it comes to a membership in an airline alliance in Asia. Now those discussions and talking points are now a part of the past as Philippine Airlines now starts the work to align its operations and services with oneworld’s standards.
The Philippines will become a major hub for oneworld, and Philippine Airlines’ future membership in the alliance will open up new opportunities for connections and collaboration within the Philippines and the rest of the world which will benefit customers. Philippine Airlines and the Philippine aviation industry will need other outside help to maximize the benefits of the flag carrier joining oneworld. Among them is the development and opening of the New Manila International Airport. It would provide a better platform to expand its services and offer world-class facilities for the airline’s customers and those flying with partner airlines.
Being a part of oneworld is just one part of Philippine Airlines’ overall strategy when it comes to global partnerships. There will be a realignment to provide the best value for its customers traveling to/from the Philippines, and to enhance the Philippines as a major aviation hub in Asia.