It's More Fun In The Philippines

[Thomas]

More fun in the Philippines ?...Why does everyone want to leave ?

Many Filipins want to leave of economical reasons :th_unfair:

but them I know get home sick... :)

[Markham]

Remember that this is the year that saw one major international airline, KLM, stop its direct service to and from Europe even though its daily flights were always fully-booked. The reason KLM gave is exactly the same that British Airways and Lufthansa gave several years ago when they too pulled-out - the iniquitous so-called "Common Carrier" tax. There's nothing "common" about it at all - that infers it's a tax levied on all airlines - as it is only levied on foreign airlines.

Is that extra fee still there?

When I checked flight prices around a year ago, it was a BIG difference in price if I SWITCH to a Philippine flight in e g HongKong,

but when I checked recently I didn't got that difference in same website making searches.

Yes it is. However the Hong Kong routes are very competitive with Cathay Pacific, Dragonair, PAL and Cebu Pacific being the principal carriers. In order to compete with Philippine carriers (exempted from CCT), Cathay and its regional offshoot Dragonair have had to adjust their fares - but they still pay CCT.

KLM still flies between Amsterdam and Manila but with 90 minute stops both ways at Taipei. Since CCT is levied on revenue earned for flights between the Philippines and the first international destination, the airline now pays at a much reduced rate. But from the Philippine point of view, the loss is somewhat greater because KLM has moved its base from Manila to Taipei where all aircraft servicing and crew changes are now performed. No longer are Manila hoteliers benefiting from the two night layover for some 20+ crew; no longer is Lufthansa Micro-Asia maintaining the aircraft; no longer are there KLM employees in Manila and gone are all catering requirements.

[Thomas]

KLM still flies between Amsterdam and Manila but with 90 minute stops both ways at Taipei. Since CCT is levied on revenue earned for flights between the Philippines and the first international destination, the airline now pays at a much reduced rate.

I see. That explains why the huge price difference is gone.