Philippine Airlines, Inc.

OST-2008-0015 - Exemption - Manila-Vancouver-San Diego

January 10, 2008

Application for an Exemption

PAL has received authorization from the Government of the Philippines to commence service to San Diego as an additional point in the U.S. This application requests an exemption allowing PAL to conduct scheduled flights to San Diego. PAL plans to launch service to San Diego in the fourth quarter of 2008 with three (3) weekly flights using A340‑300 aircraft. PAL proposes to serve San Diego as a U.S. gateway with an intermediate traffic stop in Vancouver, Canada. PAL requests full local traffic rights between Vancouver and San Diego.

PAL's proposed service would provide the only direct flights between the Philippines and San Diego. By opening a direct air link from Manila, PAL's proposed service would facilitate greater tourism and trade in the U.S.-Philippines market and provide an economic boost to the San Diego metropolitan area. PAL intends to commence service to San Diego in the fourth quarter of this year.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660, mlbenge@zsrlaw.com

January 16, 2008

Re: Support of San Diego County Regional Airport Authority

January 25, 2008

Answer of Hawaiian Airlines

Although PAL objected to Hawaiian's recent application with the Philippine Civil Aviation Board for an operating certificate for its new route between Honolulu and Manila, Hawaiian believes in extending the opportunity for fair competition here in the US to all who qualify and play by the rules just the same as it hopes to enjoy in the foreign skies in which it flies. Hawaiian therefore takes no position on either the substance of PAL's application or, to the extent PAL is permitted to do so while in Category 2 status under the International Aviation Assessment Program, its expansion or change in service.

Counsel: Dow Lohnes, Jonathan Hill, 202-776-2000, jhill@dowlohnes.com

May 21, 2008

Letter of Ledford Enterprises in Support

I am writing to add my support for the application by Philippine Airlines for an exemption to operate direct air service between San Diego International Airport and Manila Ninoy Aquino International via Vancouver, British Columbia. I appreciate PAL's newest proposed route because it will provide San Diegans the first direct flight to Asia, which is also a key priority not only for international businessmen such as myself, but to the over 100,000 Filipino-American population residing in San Diego County and to the San Diego Regional Airport Authority.

By: Richard Ledford, 619-696-1552