Tuesday, November 12, 2024

Philippine airlines cut back direct flights to China as demand dips and tensions grow


MANILA – Three main Philippine airlines have reduced direct flights between the country and China and are planning further cutbacks by year end amid sluggish demand from Chinese tourists, driven by heightened geopolitical tensions between the two countries and a ban on mostly Chinese-run online casinos.

AirAsia Philippines, the local unit of Malaysia’s AirAsia owner Capital A, has suspended all its flights from Manila to China.

Before the Covid-19 pandemic, AirAsia Philippines had flights from Manila to seven Chinese cities in 2019. In 2023, the carrier had flights to four cities in China, two by mid-2024, and none by end-August.

Mr Steve Dailisan, AirAsia Philippines’ head of communications and public affairs, said the temporary suspension was “to optimise the fleet and prioritise other routes with stronger load factors”.

Passengers from Manila can still travel to China through other AirAsia hubs in Malaysia, Thailand, Indonesia and Cambodia, he noted.

“China is an important route for AirAsia Philippines and we look forward to serving it again,” said Mr Dailisan.

In the meantime, local budget carrier Cebu Pacific has shelved plans to resume its Manila-Beijing flights in 2024. That route was suspended in 2020 due to pandemic-related travel restrictions.

In addition, Cebu Pacific’s president and chief executive Alexander Lao told reporters on Oct 3 that the carrier would reduce its flights from Manila to Guangzhou, Shanghai, Shenzhen and Xiamen by the end of 2024 due to low demand.

By then, “we will be down from maybe anywhere between five and seven flights a week, to just two destinations. And it’s probably because of softening demand in China”, said Mr Lao.

Chinese travellers are more focused on domestic tourism for now due to China’s slowing economy, and Cebu Pacific needs to adjust its plans accordingly, he added.

Meanwhile, Philippine Airlines has reduced its flight frequencies from Manila to China, according to global flight statistics provider OAG Aviation.

Mr Mayur Patel, OAG Aviation’s regional sales director, told ST that the airline has retained “only a few routes, including Shanghai, Xiamen and Quanzhou”.

While the carriers cited only weak travel demand as the reason for slashing their direct Philippines-China routes, Mr Patel said geopolitical tensions between the two countries have primarily influenced the changes.

“Geopolitical tensions between the two countries have led to stricter visa requirements (for Chinese nationals), and this has led to changes in flight capacity,” Mr Patel said.

His view was echoed by the Philippines’ Department of Tourism (DOT), which told ST in a written statement on Oct 3 that the local carriers had to reassess their Philippines-China routes due to the “overall weakening demand in international travel from China that has been exacerbated by the slowdown of its economy and the persisting geopolitical tensions between the two countries”.

Like its South-east Asian neighbours, the Philippines has long relied on China to bolster its tourism industry.

Before the onset of the Covid-19 pandemic that led to strict travel restrictions worldwide, more than 1.7 million Chinese tourists visited the Philippines in 2019. Tourist arrivals from China numbered 263,000 in 2023, and amounted to 130,574 as at late April 2024.

Tensions between Manila and Beijing over the disputed South China Sea have been rising since President Ferdinand Marcos Jr adopted a more assertive position in the maritime dispute when he took office in 2022.

In recent months, Beijing has been blocking and firing water cannon at Philippine ships sending supplies to troops stationed on an ageing warship grounded at Second Thomas Shoal, which serves as Manila’s remote military outpost.



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