Philippine Airlines Plans to Restore Its Youth

When Philippine Airlines completes its fleet renewal program, it estimates that it will own one of the youngest airline fleets in all of Asia with the average age of aircraft pegged at just 3.5 years old. According to a statement released by the airline earlier this week, the fleet modernization program is designed to help the airline become Asia's airline of choice through network expansion and service innovation.

Copyright Photo: Angelo Agcamaran/PPSG

Under the fleet modernization program, Philippine Airlines is planning to retire and replace twenty ageing aircraft with modern, fuel efficient airplanes that will help the carrier to reduce costs and restore profitability. The airline recently reported a comprehensive loss of $229.7 million for the first nine months of 2013. 

Philippine Airlines executives remain confident that 2014 will show a healthier financial performance as the airline's recent loss was attributed to a $261 million expense for the write-off of its ageing Boeing 747 fleet, which it will retire very soon. With this sizeable one-off expense out of the way, PAL believes that its outlook is far more positive moving forward with a more efficient fleet and expanded network.

“2013 was a clean-up year for PAL as we go through the costly yet necessary fleet renewal process but we are on track with our goals," said Ramon Ang, President of Philippine Airlines. "We remain committed to improving your airline’s financial and operational performance.” Ang cited the promising opportunities of expanding its network in the United States while deploying its fuel-efficient fleet of Boeing 777 aircraft. The deployment of the 777 fleet will generate substantial savings in maintenance and fuel costs. He added that the carrier plans to seek partnerships with other airlines. 

Meanwhile, Philippine Airlines has not ruled out the possibility of acquiring additional long-haul aircraft. According to Ang, with the retirement of their four Boeing 747 aircraft, the airline's six Boeing 777 aircraft will be "enough, for now" to replace the older jumbo jets acquired in the 1990's. The four jumbo jets form part of a batch of 20 aircraft in the PAL fleet that the airline plans to retire as they are too expensive to operate and maintain. Although no buyers have been identified, Ang revealed that the carrier's 747 fleet has been "already sold."