Etihad Airways (EY, Abu Dhabi International) and Philippine Airlines (PR, Manila Ninoy Aquino International) have signed a strategic partnership agreement following the signing of a Memorandum of Understanding earlier this year. The agreement covers codeshare flights, loyalty programs, airport lounges, joint sales and marketing programs, a Philippines domestic air pass, cargo, and the coordination of airport operations to provide a better guest experience at their Abu Dhabi International and Manila Ninoy Aquino International hubs.

Among the more critical aspects of the deal are codesharing in which the airlines will place their respective "PR" and "EY" codes on each other's Manila-Abu Dhabi flights to operate a combined total of 19 weekly flights between the two capitals. Etihad Airways will also place its ‘EY’ code on Philippine Airlines flights from Manila to 20 destinations throughout the Philippines in the first phase, increasing to 28 during 2014.

The airlines are also developing a joint air pass scheme which will enable overseas visitors to purchase an international flight to Manila and up to three additional sectors on Philippine Airlines’ domestic network.

"This will enable travellers to visit more of the Philippines and provide a significant boost to the local tourism industry. The air pass is expected to go on sale by 1 September 2014," a joint statement read.

Etihad operates a double-daily service between Abu Dhabi and Manila using a B777-300(ER) while Philippine Airlines five weekly flights utilise an A330-300.

On the cargo front, the airlines have signed a Letter of Intent (LoI) for an extensive capacity agreement based on the belly hold capacity of all passenger services between Abu Dhabi and Manila, as well as connecting airfreight into Africa, Australia, the Middle East and South East Asia. The airlines will work on the joint development of value-added cargo products such as priority and pharmaceuticals across their combined networks.

“This new partnership builds on the success of our original codeshare agreement and reflects the mutual respect, trust and goodwill that have built up over time – not only between the airlines but also between our governments," Etihad Airways’ President and CEO James Hogan said.