Darwin Airport: Darwin-Manila service had highest yields of Philippines-Australia services

    Darwin International Airport stated (06-Feb-2018) it was “sorry” to learn of the public advice of Philippine Airlines (PAL) intention to suspend air services to Darwin from 24-Mar-2018. Darwin International Airport noted that after nearly five years of continued service to the Northern Territory capital, the “travelling public and all stakeholders concerned were surprised to learn that PAL could no longer sustain the route, even though data available through Airport IS indicated the DRW-MNL service achieved the highest yields of all services connecting the Philippines and Australia“. Together with other partners such as the Northern Territory Government, the airport is making a “concerted effort to encourage a new carrier to serve the Manila market; a market which is in easy reach of Darwin by a narrowbody jet”. The airport stated it is “committed to improving the economic viability of a service, to serve one of the largest Filipino community catchment areas in Northern Australia, with an estimated ex-pat community of 15,000”. Darwin Airport also commented that NT’s significant gas reserves and other business aspects adds to the higher yielding market aspects, with the large presence of Japanese and other Asian interests in the top end, that provided high yielding traffic volumes. These higher yield business traffic volumes from near-to Asian markets, coupled with strong VFR frequencies and recent lift in capacity by SilkAir is at odds with what is a high yield market that Darwin is. Darwin Airport expects a new entrant will fill the PAL void, due to these and other significant revenue opportunities PAL’s suspension offers.