Wednesday, October 19, 2011

KLM 'absolutely not happy' in PH

KLM 'absolutely not happy' in PH | ABS-CBN News | Latest Philippine Headlines, Breaking News, Video, Analysis, Features

This is a good case study on 'doing business in the Philippines'. I hope it will end on a reassuring note for KLM. It's grievance on the tax burden of maintaining EU-PH direct flights seems to be well-founded. And until the rules are changed, the tax authorities will have no choice but implement the law in its present form.

Daily KLM flights (Ams-Mla) are always full, with the majority of passengers consisting of OFWs, particulary seafarers. But evidently, KLM's maximum capacity operations do not translate to optimal returns. Of course, the Philippine government, nor KLM, has any influence on the subsidized carriers from the middle east, which KLM sees as the source of unfair competition.