South Korea and Philippines Expand Air Services Agreement
South Korea and the Philippines have finalized an agreement to expand international air services between the two countries, aiming to enhance connectivity and boost tourism.
Under the memorandum of understanding (MOU) signed on July 4th, capacity between Manila Ninoy Aquino International Airport (MNL) and Seoul Incheon International Airport (ICN) will increase to 30,000 weekly seats, up from the previous limit of 20,000. The agreement also removes restrictions on flights from Manila to other destinations across South Korea.
This updated arrangement includes liberalizations of third and fourth freedoms, facilitating greater passenger traffic and improved connectivity between the capital cities. It is expected to stimulate regional economic growth and benefit local economies in both nations.
South Korea remains a crucial source of international visitors for the Philippines, with Korean tourist arrivals reaching 1.4 million in 2023. By May 2024, more than 680,000 South Korean tourists had already visited the Philippines, accounting for a significant portion of foreign arrivals.
The newly signed MOU supersedes a previous agreement from 2017 and sets the stage for further discussions on aviation policy. The Philippine government has proposed amendments to allow designated local carriers to operate based on their principal place of business in the country, subject to future negotiations.
Additionally, discussions are ongoing regarding South Korea’s proposal to permit third-country codesharing arrangements, highlighting efforts to deepen aviation ties between the two nations.
According to OAG Schedules Analyser, Jeju Air currently leads the capacity provision between South Korea and the Philippines with a 20.4% share of all seats, followed by Korean Air (14.9%), Philippine Airlines (13.9%), Asiana Airlines (12.5%), and Jin Air (9.7%).
The market analysis reveals that there are currently 11 nonstop routes operating between South Korea and the Philippines, including destinations like Cebu, Clark, Kalibo, Manila, and Tagbilaran from Seoul Incheon International Airport. Manila Ninoy Aquino International Airport is also connected to other points in South Korea through services from Busan and Cheongju.
These recent steps to liberalize air services are expected to contribute to the recovery of air travel between South Korea and the Philippines, which has yet to reach pre-pandemic levels. As of July 2024, there are 452,517 available seats between the two countries, showing progress towards reinstating previous levels of connectivity seen in 2019.