PAL, Lufthansa mull tieup

PAL, Lufthansa mull tieup

MANILA (AFP): Philippine Airlines (PAL) and Deutsche Lufthansa AG are discussing a joint cargo service agreement from November 1, the Filipino carrier said Monday.

The proposed "block space agreement" will enable the ailing Philippine flag-carrier to regain a foothold in the European market which it abandoned in June 1998 due to the Asian financial crisis, PAL said in a statement.

Under the proposed accord PAL would buy space on Lufthansa's thrice-weekly cargo flights from Manila to Frankfurt, the statement said.

PAL expects to take a market share in the shipment of products assembled in the Philippines by European firms such as Siemens of Germany, Alcatel of France, Asea Brown Boveri of Sweden and Cable and Wireless of Britain, the statement said.