Airlines' Atlantic pact guards against budget rivals, Brexit

Philippine Airlines (PAL) Chairman Lucio C. Tan is granting special privileges for the men and women of the Armed Forces of the Philippines and the Philippine National Police in recognition of their sacrifices for the country.

Dr. Tan is granting 40 kilos free baggage allowance to AFP and PNP personnel in active service traveling on all PAL domestic routes on official or personal capacity.

Military personnel are required to present their valid identification card upon check-in at the airport. Baggage in excess of the free baggage allowance of 40 kilos shall be assessed the applicable excess baggage rates.

This grant, which is applicable across all fare brands, shall be valid only for travel until 31 December 2017.

“My heart goes out to our country's heroes and heroines who have sacrificed their lives in the battlefield and to all those who continue fighting to save Marawi and other critical areas. You deserve the country's highest honor,” said Tan.

In addition, a 20 percent discount on all regular domestic fare brands (except

BERLIN/NEW YORK (Reuters) – A transatlantic alliance between three global airlines will shore up their position in the lucrative UK-US market, shielding them from low-cost rivals and the uncertainties of Britain's exit from the European Union (EU).

Delta Air Lines, Air France-KLM, and Virgin Atlantic have announced plans for a 15-year partnership on routes between Europe and the United States and equity deals which will see them take stakes in each other.

The joint venture, announced on Thursday, will see the three carriers share their profits on transatlantic routes. It will give Air France-KLM greater access to the Britain-US market – among the most profitable – while the Franco-Dutch group's short-haul European flights could bring more customers to Virgin's US-bound flights from London.

The ability to offer customers a host of extra flights could give US carrier Delta an edge against domestic rivals including American Airlines and United Airlines.

The new alliance also provides the partners with a hedge against Brexit in the business travellers market, should Britain's EU departure lead to companies moving to the continent, and a consequent drop in air traffic from London.

Global banks have already said they could move thousands of jobs out budget economy fare brands) is also being provided to all active members of the Armed Forces of the Philippines and the Philippine National Police for any type of travel – official or personal. AFP and PNP personnel must present a valid ID card upon ticketing.

On July 25, 2017, President Rodrigo Duterte honored the fallen soldiers of Marawi in Malacañang Palace with the family members of deceased soldiers as special guests.

PAL is extending two free domestic tickets to Manila for each family who attended the said event called “Salamat Magigiting na Mandirigma, Go Negosyo Kapatid from Marawi Financial Assistance to the Families of Fallen Heroes.”

Earlier, the flag carrier donated two million pesos to the AFP for the soldiers who are fighting or have fought in Marawi.

The Tan Yan Kee Foundation – the corporate social responsibility arm of the LT Group as well as the PAL foundation are carrying out donation drives and humanitarian cargo grants, respectively, for those affected by the Marawi situation. of Britain to prepare for Brexit, while two major EU regulators are seeking new homes.

"This is a play on Delta's part to protect itself as Brexit unwinds should London lose traffic," said Atmosphere Research Group analyst Henry Harteveldt.

The partnership, expected to come into effect in 2018, will also strengthen the three big players' positions, at a time when low-cost entrants Norwegian Air Shuttle and Wow Air are shaking up the US-Europe market – though their share of flights remains small.

It will also allow for better use of the airlines' London Heathrow slots, analysts said, allowing them to free up extra short-haul capacity and move it to long-haul routes.

'SKIN IN THE GAME' The partnership, which is subject to regulatory approval, would combine two existing and overlapping transatlantic joint-ventures, supported by equity deals worth $1 billion.

Willie Walsh, CEO of rival airline group IAG, said Air France-KLM's investment in Virgin Atlantic – it plans to take a 31 percent stake – could give it a bigger say in how Britain's aviation landscape looks post-Brexit.

"It probably represents a positive in terms of the Air France position in what the rules should be after Brexit... they have skin in the game," he told analysts on Friday.

Billionaire Richard Branson says he’s ceding control of Virgin Atlantic Airways Ltd. so that the carrier can join what it claims will be “the most significant joint venture in aviation.” For Virgin, the deal may be as much about gaining a lifeline after years struggling to keep up with British Airways.

Branson, 67, said in an open letter when Air France-KLM Group announced the purchase of 31 percent of Virgin Atlantic on Thursday that the deal, tied to an expansive trans-Atlantic alliance, will allow the UK carrier to “prosper and grow” in coming decades “as I get a little older.”

The entrepreneur will pay a price for that reassurance, surrendering ownership to the French company and Delta Air Lines Inc., which holds a 49 percent stake, leaving him with just 20 percent of a company launched with cash from his original record label and which he has described as “truly a labor of love.”

Branson acknowledged the forces that have seen Virgin Atlantic lose ground to BA, which he said has a “stranglehold” on slots at London’s Heathrow airport. He added that the biggest UK airline is also more dominant after forming IAG SA with Spain’s Iberia and buying up rivals BMI, Aer Lingus, and Vueling.

What Branson didn’t say is that Crawley, England-based Virgin Atlantic had an opportunity to make many of the same purchases, but neglected to do so as he spread his energies between Virgin-branded businesses spanning trains, gyms, cola, banking, mobile phones and most recently space travel.

The 220 million pounds ($288 million) that Air France-KLM will pay for its Virgin Atlantic stake hints at the UK carrier’s lack of global standing, indicating a valuation of 709 million pounds for the whole of company. IAG is worth 12.4 billion pounds, Air France-KLM 3.5 billion euros ($4 billion) and Delta, which bought its Virgin holding after a deal in 2012, some $36 billion.