Etihad Airways (EY) and Philippine Airlines (PR) have announced a strategic partnership agreement, building on the foundation of an earlier codeshare agreement. The deal covers loyalty programs, airport lounges, joint sales and marketing programs, a Philippines domestic air pass, cargo, and the coordination of airport operations in Abu Dhabi and Manila.

Initially, the partners will place their respective PR and EY codes on each other’s Manila-Abu Dhabi flights to operate 19 weekly flights between the two capitals. Etihad will also place its code on PR flights from Manila to 20 destinations throughout the Philippines in the first phase, increasing to 28 by the end of this year.

Frequent flyer members will have reciprocal loyalty program benefits, including priority check-in and boarding, baggage handling and lounge access across both networks.

The agreement also extends the use of Etihad’s premium lounges in Abu Dhabi (from Aug. 1) and London Heathrow (from Nov. 1) to PR’s business class guests and certain members of its frequent flyer program when traveling on PR’s Manila-Abu Dhabi and Manila-London Heathrow flights.

On the cargo front, the airlines have signed a letter of intent for an extensive capacity agreement based on the belly-hold of all passenger services between Abu Dhabi and Manila, as well as connecting air freight into Africa, Australia, the Middle East and Southeast Asia.

They are also developing a joint air pass scheme, which will enable overseas visitors to purchase an international flight to Manila and up to three additional sectors on Philippine Airlines’ domestic network.

Etihad operates 2X-daily flights between Abu Dhabi and Manila using a Boeing 777-300. Philippine Airlines’ 5X-weekly flights use utilize an Airbus A330-300 aircraft.