Philippine Airlines Allocates $700 Million for New Aircraft
Philippine Airlines will allocate up to $700 million for the acquisition of new aircraft and spare parts in 2016. According to PAL President Jaime Bautista, the national flag carrier estimates that it will spend between $500 to $700 million.
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| Copyright Photo: Angelo Agcamaran/PPSG |
The budget includes a previously announced order for five Airbus A321 aircraft and two Boeing 777 aircraft, which are due to arrive in the coming year. Bautista noted that some of the aircraft would be leased, while others are purchased.
With strong demand for air travel anticipated to continue, Bautista does not foresee the financing of the aircraft to be a problem as Philippine Airlines has achieved profitability. "There are many companies who will be willing to finance us," said Bautista.
An announcement is also expected by the end of this year on the much anticipated replacement of the ageing A340 fleet. Philippine Airlines is planning to replace the fuel-inefficient aircraft with either the Airbus A350 or Boeing 787. However, the carrier has not revealed which aircraft it prefers. "We are waiting for Airbus and Boeing to make their final and best proposals," said Bautista.
The new long-range aircraft will be included under a separate order than the $700 million budget that has been allocated for the coming year. Philippine Airlines is still contemplating financing options for those aircraft including the sale of shares or acquisition of a strategic partner.
PAL has revealed in the past that it is interested in working with an established foreign carrier that could acquire up to 40 percent of the national flag carrier. "We still prefer a strategic partner," said Bautista, noting that the carrier would like to grow its network and possibly enter an alliance.
Rehash. This site bores me.
ReplyDeleteThen go to a different website. Common sense.
ReplyDeletePlease, please order them with PROPER seatback IFE. It's boring sitting on a plane for eight hours from Melbourne or Sydney without IFE.
ReplyDeletePAL keeps on talking about refleeting and the next month comes same tipic again. So old news.
ReplyDeleteWho is this "foreign airline"? Etihad? Delta?
ReplyDeleteThis entire country has been waiting for the airline to grow a network or join an alliance. Take your time - I'm hourly.
ReplyDeleteWho would take PAL for a partner? Star Alliance has its own United, SQ, Asiana, Eva, All Nippon, Thai, Turkish, Air China, Emiraets and Vietnam - all profitable airlines serving Manila from North American and from Europe.
ReplyDelete-One World has its own Cathay Pacific, BA, Etihad, Qatar
-Skyteam has Korean, Delta, AF, KLM, AA, JAL, China Southern, China Eastern, China Airlines
PAL is not an asset for any of these alliances, that's why they are not interested in it.! Wanna bet?
Hmnnnn........ Why you did not include Malaysia airlines in One World? Wanna bet?
DeleteI'm not pro-PAL, but the last time I flew via Malaysia airlines from Los Angeles to Manila using miles was right before its planes vanished. Now, Malaysia Airlines does not have US flights anymore, but they are still one world partner. They still have a lot of flights though within Asia and other countries.
So would you fly Malaysia Airlines or PAL?
Thanks for the info on Malaysian as I know what has been going on with MH unfortunately, but I always make it a point to fly Singapore Airlines' LAX/Tokyo/Singapore/Manila route because I hold a United Airlines mileage benefits program which credits all miles flown with SQ, as they are both Star Alliance partners.
DeleteI do not care much if I am "circling" the Pacific before reaching MNL but SQ's A380 is incomparable with PAL's B777. I have also chances in to fly with Malaysian to Australia later but at this time, I prefer patronizing Cebu Pacific for the sake of the Philippines' local businesses. If PAL lowers its fares to Sydney, I may opt to fly with them as well. LOL...
Speaking of Malaysian Airlines (MH), it was so popular businesswise especially during those decades of Middle Eastern oil and gas booms like 60s, 70s, early 80s when it is the only airline (aside from KE) serving Manila to Jeddah with its DC-10 planes filled with OFWs and pilgrims to Makkah. I could not imagine how unfortunate MH recently, losing lots of routes and fortune from the turn of deadly events that occurred. I was even so proud of MH reaching as far as Buenos Aires and Johannesburg with its B747-400. I vacationed my family of four to Buenos Aires and Uruguay in 1998 and I was so proud to tell my children about the parked 747 at Buenos Aires' Pistarini Airport coming from Kuala Lumpur and Manila (of course) and my children were amazed at the big 747 parked beside our parked LAN Chile 767. I was teasing my son that someday, we will go back again to this place and make connections to South Africa and Asia (particularly Manila and Beijing) as my kids were fond of long-haul travels. Today, they are adults and things do not seem to be the same again: they have significant others and do not want to fly with my wife any longer. Thank God, I have given them all the travel chances when they were growing up, an envy to all my relatives, friends, nephews and nieces.
DeleteFor your info, I am a retired West Coast USA travel counselor or agent (whatever you may call it)........
Watch out PAL and Cebu Pacific - Mighty United Airlines based in Chicago, USA as been fielding 787s from its main U.S.A. hubs to Asia and the Pacific. It means that your planned destinations in Chicago, Houston, Newark, Denver, Los Angeles, San Francisco, etc., are now grappled by UAL...
ReplyDeleteIt may even open a non-stop SFO or LAX to Manila on its new 787s as planned. Be aware, the competition is now real! Example, I just booked a Denver to Tokyo nonstop flight on its 787 connecting to Manila with All Nippon, Japan's biggest airline. Do your moves now because a profit may never be realized sooner or later!
And Jin Air, subsidiary of Korean Air, will fly daily to Honolulu from Seoul starting December 19, 2015. Jin Air flies to Clark and Cebu to date, so if you want to spend less for Clark/Seoul/Honolulu for $300 one way, better take note! Jin Air flies B738 and B777 on this route. Cebu Pac, make your move! PAL, remove your A340 and lower your fares!
DeleteGood luck!
Then come the four Chinese carriers growing like "tumor".
ReplyDeleteThey are very aggressive in marketing, opening destinations here and there! Watch out competition! If one Chinese airline charges me a hundred dollars one way from MNL to LAX, I fill forget Cebu Pacific forever! LOL!
Yes, I bet China Southern Airlines based in Canton (north of Hongkong) will rake the proverbial "anthill" of the airline industry by selling cheap tickets and opening more and more destinations. It now claims to be the sixth or seventh largest airline. I can see, it is fielding A380 jumbo jets now - a significant and positive move - for the sake of competition!
DeleteMing how!
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ReplyDelete