Dubai: Etihad Airways has formed closer ties with Philippine Airline (PAL) in a move that will give it greater access to the Filipino market.

The agreement, an expansion on a Memorandum of Understanding (MoU) signed earlier this year, covers codeshare flights, loyalty programmes, airport lounges, joint sales and marketing programmes, a Philippines domestic air pass, cargo, and the coordination of airport operations.

“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,” said Etihad Airways President and Chief Executive Officer James Hogan.

Initially, 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 have also signed a letter of intent covering belly hold cargo on all passenger services between Abu Dhabi and Manila, as well as connecting airfreight into Africa, Australia, the Middle East and South East Asia.