Philippine Airlines to Shut Down, Impacting US-Manila Nonstop Flights
Passengers traveling between the United States and Manila will be affected as Philippine Airlines, Asia's oldest scheduled carrier, prepares to shut down operations on March 31. The airline's nonstop flights between Los Angeles, San Francisco, and Manila will no longer be available, forcing travelers to book connecting flights through Tokyo or other Asian hubs. This move is attributed to the airline's struggles due to strikes, the Asian financial crisis, and excessive debt.
Key Takeaways:
- Philippine Airlines will cease operations on March 31, affecting nonstop flights between the US and Manila.
- Passengers will need to book connecting flights through Tokyo or other Asian carriers.
- Northwest Airlines offers daily flights to Manila from nine US cities but connects through Tokyo.
- United Airlines, American Airlines, and Delta Air Lines also require passengers to connect in Tokyo.
- Continental Airlines offers nonstop flights to Honolulu from Newark, Houston, and Los Angeles, then connects in Guam.
- The airline's shutdown is attributed to strikes, the Asian financial crisis, and $2 billion in debt.
- The Asian market is expected to rebound in the year 2000, although with possibly reduced airline capacity.
- Business travelers can expect higher prices, with preliminary estimates suggesting a 5-6% increase in business travel costs next year.
Statistics:
- Philippine Airlines' debt: $2 billion
- Expected increase in business travel costs: 5-6%
- Expected increase in air fares: 4-5%
- Expected increase in hotel room prices: 7-10%
- Number of US cities with Northwest Airlines' daily flights to Manila: 9
- Number of US cities with United Airlines' daily flights to Manila (before shutdown): 1
- Capacity of the Grand Princess cruise ship: 109,000 tons
- Cost of the Grand Princess: $450 million
Sources:
- The New York Times
- Rosenbluth International
- American Express
- Peninsular and Oriental Steam Navigation Company