Philippine Airlines is expecting a further recovery in business and plans to have all of its aircraft in active service by the end of this year. The airline will spend more on capital expenditure this year, and a lot of it is expected to go towards making its entire fleet serviceable again.
Restoring fleet
Philippine Airlines (PAL) recently held a media event where its top executives gave an optimistic forecast for the year ahead. Apart from expecting profits in the coming months, the airline could also see all of its planes back in active service by the time 2023 comes to an end. PAL chairman Lucio Tan was quoted as saying,
“We are expecting a continuing strong market recovery so there are plans in place to enhance and upgrade our fleet.”
Photo: Airbus
As per ch-aviation, three of PAL’s airplanes are currently in storage. These include an Airbus A320-200, A320neo, and an A321neo. The airline’s vice president for network planning, Christoph Gaertner, noted that PAL has 68 airplanes in its fleet, and the reactivated fleet would be deployed on international routes.
The airline could have up to 40% increase in flight volume by year-end and see strong growth in passenger traffic as people return to the skies in what many call revenge travel.
For China
Gaertner said most aircraft returning to service would be used for its China routes. Indeed, as noted by Simple Flying last month, Philippine Airlines is working hard to rebuild its network in China.
Before the pandemic, mainland China was the second-largest source of tourists to the Philippines, with 1.74 million Chinese residents arriving in 2019. PAL currently flies to popular mainland Chinese destinations such as Shanghai, Beijing, Xiamen, and Guangzhou and plans to increase frequencies, given the growing demand from travelers.
Photo: Airbus
But making further inroads into the Chinese market later this year depends on the parked planes coming back, which themselves are dependent on a smooth global supply chain. Philippine Airlines CEO Stanley Ng highlighted that a lot relies on the availability of parts, as the planes will need to be refurbished before they can be re-introduced. He added,
“Supply chain is one of the biggest challenges as well. So, if we wanted to activate our aircraft, we are also dependent on the suppliers of engines as well as other spare part. We are open to every supplier. Currently, we are actually in the process of negotiating with them.”
Profits
Ng added that based on the business done so far this year, the airline hopes to end the year in profit. This would, indeed, be a turnaround for the airline as not too long ago, PAL filed for Chapter 11 bankruptcy protection in a New York court when it was saddled with billions in outstanding debt.
But things are looking up now. The airline also recently reacquired an Airbus A330 aircraft offering 18 business class seats, 24 premium economy seats, and 267 economy seats, and will travel to long-haul destinations in Asia and Australia. Hopefully, PAL will continue recovering in the coming months and end the year with good revenues, as projected.
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