Darwin was only ever a fuel stop over point for Manila - Brisbane and also the short lived Manila - Perth services that Philippine Airlines operated using A320 aircraft. These shorter range aircraft were incapable of travelling the full distance with a full load. Passengers were taken on and off in Darwin but prices were never attractive with fares on the Manila - Darwin route generally around the same price as the twice as long Manila - Brisbane route. This was in recognition of the fact that due to the lack of cabotage on the route, Philippines Airlines were unable to sell seats on the Darwin - Brisbane leg and hence any seats sold to Darwin passengers were at the expense of more lucrative Brisbane passenger.
To add insult to injury, in the month of March, Philippine Airlines are offering one-way flights from Darwin to Manila for $1,701.10 while Brisbane passengers can travel Brisbane - Darwin - Manila for only $764.89. Clearly Philippine Airlines has given up on Darwin!
The larger and longer range A321neo (new engine option) simply make a stop over in Darwin unnecessary for Philippine Airlines. If the Australian Government allowed foreign airlines to carry domestic passengers then Darwin might be a viable stop over.
NT News | 28 December 2017
IT’S a case of half a step forward and three steps back with today’s news that yet another international airline is planning to withdraw its services from Darwin.
This is the third international airline this year to say Darwin is an unsustainable market. Philippine Airlines’ reasons for planning to leave are no different to Malaysia Airlines and Air Asia.
The low yields are unprofitable, and business demands that their focus should be on higher yield destinations Sydney, Melbourne and Brisbane.
While the Philippines is not a major tourist highway for Darwin, it is a country we want as a trade partner.
So when Philippines Airline ceases its service on March 24 next year it will become a lot more difficult and time consuming to get in and out to do business.
It will mean lengthy delays of up to six hours in Singapore waiting for connecting flights.
At the same time the decision does nothing to help the confidence of a local tourism industry crying out for more international tourists.
Whether or not the Territory Government can convince Philippine Airlines to change its mind is a fight to be had.
The silver lining, if there is one, is that Darwin’s Singapore partners will pick up more customers and strengthen their economic position on the Darwin route.
SilkAir, which has chosen Darwin to be the first Australian airport to be serviced by its newest aircraft, the Boeing 737 MAX 8, and Jetstar will most likely be the big winners.
Just as Jetstar will be with Air Asia’s decision to scrap its Darwin-Bali service.
What is important now is the Territory Government continues its good work to get direct China air links to Darwin.
International newcomer Donghai Airlines has said it wants to come.
Hopefully the deal can be done and we can convince Chinese travellers to make Darwin and the Territory a destination of choice.