Plan to change non-stop route to counter impact of taxes
KLM Royal Dutch Airlines is planning to change its Amsterdam-Manila service from a non-stop route to a one-stop service via Taiwan or Hong Kong. Since capacity would be shared by both stops, the move, planned for April, will cut the number of seats available between Europe and Manila. KLM is currently the only European carrier still operating direct flights to the Philippine capital. The move is designed to counter the impact of the 3% Common Carrier Tax and 2.5% Gross Philippine Billings tax being charged by the Philippines.
Cees Ursem, KLM general manager for the South China Sea region: “These taxes are a heavy burden for all foreign carriers, but especially for European carriers. That’s why all the European carriers have left the Philippines in the last decade.”