NEWSFLASH

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PAL LINKS WITH GARUDA, VIETNAM AIRLINES

Manila, May 11, 1998 - Philippine Airlines has begun joint services with two neighboring regional carriers, Garuda of Indonesia and Vietnam Airlines.

PAL's arrangement with Garuda involves code-sharing arrangements on flights between Manila and Jakarta, while the agreement with Vietnam Airlines covers code-sharing on flights between Manila and Ho Chi Minh City.

Under code-sharing, an airline can sell tickets under its own name on flights operated by another carrier. The scheme has become popular in recent years and increases convenience for customers while giving airlines access to destinations where they might otherwise not operate.

The Manila-Jakarta and Manila-Ho Chi Minh City flights will be marketed and sold in the Philippines, Indonesia and Vietnam as joint PAL/Garuda and PAL/Vietnam Airlines flights, but they will actually be operated using PAL aircraft and crew.

In the past, Garuda and Vietnam Air operated their own scheduled services too Manila, but were forces to suspend these because of the regional currency crisis and the resulting slump in their travel market.

The joint services will rationalize the capacity offered on the market, with load factor projected to increase because two airlines will be working jointly to develop the route.

The joint flight are for four times weekly to Jakarta and four times weekly to Ho Chi Minh City.

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