Philippine Airlines Set to Land in Brazil via Los Angeles

Philippine Airlines announced today that it is in the process of making preparations to launch flights to Sao Paulo, Brazil via Los Angeles. The President of Philippine Airlines, Ramon Ang, said that the airline is already processing regulatory approvals and that they are awaiting clearance to launch the route.

philippine airlines brazil
Photo Copyright: Juan Natividad/PPSG
 The flight to Sao Paolo will be an extension of one of Philippine Airlines' existing flights to Los Angeles. While no formal announcements or schedules have been drafted, it is expected that one of the morning departures aboard the Airbus A340-300 will be used to service Brazil. However, there are also rumours circulating that Philippine Airlines may be partnering with a South American carrier on a code-share basis and passengers will transfer to the South American carrier at LAX.

Philippine Airlines had originally indicated that it was contemplating transiting via the Middle East or Africa enroute to Brazil. But it is likely that the airline discovered that the economics simply wouldn't work. Los Angeles is a natural fit as the airline's routes to North America are the most profitable and given the significant population of Filipinos in California and the freedom to travel to Brazil without a visa, this is a route that might see success with minimal risk to the airline. This is in addition to the other United States-Brazil traffic that the airline may be able to capture from other airlines. At present, the only operator offering a direct service from Los Angeles to Sao Paulo is Korean Airlines. However, American Airlines is set to launch its own direct Sao Paulo route from Los Angeles on November 21, 2013.
Philippine Airlines aims to launch service to Brazil by 2014. Meanwhile, the airline is focused on saving $400 million in fuel and maintenance costs upon completion of its re-fleeting program.
With the modern, fuel efficient aircraft in place, Ramon Ang is hoping to reduce fuel and maintenance costs down to 40% of operating revenues. Current levels range from 55% to 60%. This would effectively amount to a savings of $400 million or 20% of the airline's average annual revenues.

 As part of its refleeting program, Philippine Airlines will be receiving brand new Airbus A321ceos, A321neos, and A330-300 aircraft. The total number of aircraft acquired will be approximately 72 over a three year period. Philippine Airlines is still contemplating an order for long-range aircraft of which the Boeing 777X is a contender.
Following the successful reduction of losses by nearly 50% in 2013, Philippine Airlines is hoping to return to profit in 2014. The airline reduced its losses by 24% in the first 9 months of its fiscal year. Revenue climbed by 2.4% from its passenger and cargo business. The anticipated delivery of new aircraft and re-opening of European and American skies to Philippine Airlines is expected to help boost revenue next year. 

 Philippine Airlines will be launching service to three new destinations in Australia this June along with Guangzhou in China.

1 comment:

  1. There are rumors in Brazil that the they will fly via Johannesburg.


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