KLM to cancel Manilla?

[sn26567]

"KLM to cancel services to Manilla" says the Philippine newspaper 'Manilla Standard' based on words from the local KLM manager.

Any more news?

[RoMax]

A speaksperson of KLM in the Netherlands "couldn't confirm the cancelation of the route"... Based on that and the news in that newspaper I'm relativily sure this is correct. If this wouldn't be correct at all, KLM would be fast enough to say this news is not true.

[globetrotter]

Wasnt there some increased airport or aviation tax issue at MNL that prompted KL to decide to route via Hong Kong doing away with nonstop or maybe it meant they were leaving MNL.

[earthman]

That would be just splendid, a friend of mine uses that connection a number of times per year.

[Ozzie1969]

I've been on this flight a number of times, and the plane was always full. What on earth could move KLM to cancel this flight? Are they losing money on it even if the plane is sold out?

[LJ]

"KLM to cancel services to Manilla" says the Philippine newspaper 'Manilla Standard' based on words from the local KLM manager.

Any more news?

That's incorrect. From the article you can conclude that Manila will be served as a 1-stop instead of nonstop. The exact title "KLM stops direct flight to Manila"is somewhat misleading as they also mention that "d by April 2012 it will instead use Manila as transit or tail-end operations from Hong Kong."which means that the flight will make a stop at HKG. Therfore one can conclude that the title of the article should have been "KLM stops nonstop flight to Manila".

I've been on this flight a number of times, and the plane was always full. What on earth could move KLM to cancel this flight? Are they losing money on it even if the plane is sold out?

High load factors doe no mean high profits (or profits at all). MNL is reported to be very low yield, thus though the flight may be full, they aren't making much profit.

[earthman]

An Y-class return ticket MNL-AMS costs 1000 euro if you manage to find a cheap one. This seems silly. Then again, it might be that KLM has to pay an arm and a leg for fuel @MNL, so it would be much cheaper to refuel at HKG on the way back?

[regi]

it might be that KLM has to pay an arm and a leg for fuel @MNL, so it would be much cheaper to refuel at HKG on the way back?

Interesting thought. Could somebody with knowledge in that field make a comparaison between flights to the Phillippines and Indonesia from Europe ?

[LJ]

An Y-class return ticket MNL-AMS costs 1000 euro if you manage to find a cheap one. This seems silly. Then again, it might be that KLM has to pay an arm and a leg for fuel @MNL, so it would be much cheaper to refuel at HKG on the way back?

Yes, but the majority of pax isn't flying MNL-AMS but MNL-AMS-XXX (or XXX-AMS-MNL). Moreover C-class fares start very low at EUR 2,500 (and can be as low as USD 1,500 during fare sales). Not really a good yield of filling your aircraft.

[BigJets]

YES, KLM will stop all daily non-stop Boeing 777 (-200 and -300) flights from Amsterdam to Manila. Well, at least KLM is threatening to do so, not as dramatic as Ryanair would when they threaten to close an entire base to get what they want, but just the same.
KLM would begin by operating all flights VIA Hong Kong and eventually stop all flights to Manila altogether.
KLM is the only remaining European carrier to serve the Philippines and the only airline with non-stop flights to and from Europe.
To make a long story short, the problem began with the government of the Philippines. The high taxes and excessive fees that the Philippine government is charging foreign carriers is why KLM is threatening to stop flights. In addition to all the taxes that are charged when buying a ticket, the Phil. government is charging an additional 2.5% commoners tax (CCT) and another 3% gross Philippine billings (GBP) for each ticket purchased, billed directly to the airline. Also, when leaving the country, an additional 750 Pesos is to be paid, in cash, by each passenger, before passing security. This has become totally unacceptable for KLM and even discriminatory because (except for the 750php), the Philippines’ own airlines do not pay such taxes and fees.
On one hand there are parts of the government (The Philippines Department of Tourism, amongst others) who are doing everything to try to attract more tourists and on the other hand there are other departments who’s only task is to collect as much taxes as possible, without looking at the consequences. The problem is that one department does not consult the other. You can compare the Philippines with most of Africa. For those of you who have been to Africa you will know what I’m talking about. It is disorganized, poor infrastructure and corrupt. It also takes you 10 times longer to get something done than anywhere else in the world. In other words it is one big mess.
KLM flights to Manila are quite full but, as LJ said, they have a relatively low yield. Add to that the competition from highly subsidized Arab Gulf State airlines and the rising fuel prices that make the profits for KLM very low and very fragile.
The result will be one less carrier to Manila with less tourists and thus less revenue from hotels, restaurants, shops… meaning less money for the country. Congratulations Philippines, you have managed to be even more isolated from the rest of the world on your 7,107 islands!

[regi]

that explains a lot. Did the national airline not have big troubles before? It reads as the Garuda saga in Indonesia .