PAL to receive 15 new Airbus planes this yr

MANILA, Philippines - National flag carrier Philippine Airlines Inc. (PAL), jointly owned by taipan Lucio Tan and diversified conglomerate San Miguel Corp. (SMC), is scheduled to take the delivery of 15 brand new Airbus aircraft this year as part of its massive refleeting program.

PAL senior vice president Ismael Augusto Gozon said the airline is set to receive seven Airbus A330 as well as eight A321 aircraft this year to beef up its existing fleet of 53 aircraft.

Gozon said PAL already took the delivery of one A330 so far this year.

Based on its website, the airline has an operating fleet of 53 aircraft consisting of six Boeing 777-300ER, four Boeing 747-400, eight Airbus A340-300, 13 A330-300, 12 A320-200, six A321-231, and four A319-100.

Since the entry of SMC in April 2012, PAL embarked on a massive re-fleeting program involving the acquisition of 100 aircraft.

PAL entered into two separate Purchase Agreements with Airbus in August 2012.

The first purchase agreement worth $7 billion is for firm order of 40 44 Airbus A320 aircraft and options for 20 Airbus A320 for delivery in fiscal years 2014 to 2020 while the other Purchase Agreement is for a firm order of 10 Airbus A330-300 aircraft and options for 10 aircraft for delivery in fiscal years 2014 to 2016.

In September of the same year, PAL exercised its right to purchase all of the 10 Airbus A330-300 option aircraft for delivery in fiscal years 2014 to 2016.

PAL president and chief operating officer Ramon S. Ang earlier said the airline is looking at returning to profitability in 2014 with its ongoing fleet renewal program.

Ang, who is also president and chief operating officer of SMC, said PAL hopes to cut by half its losses this year on the back of the acquisition of fuel efficient aircraft as well as the introduction of additional long-haul routes.

“By next year, PAL will earn money,” Ang stressed.

With the new aircraft, PAL hopes to save as much as $400 million or about 20 percent of the average revenues of about $2 billion by reducing the share of fuel and maintenance costs to total revenues down to about 40 percent from the current level ranging between 55 percent and 60 percent.

Last Aug. 1, PAL transferred the bulk of its domestic flights to sister firm PAL Express through an expanded code sharing arrangement to focus on international destinations particularly Europe and the US.

PAL launched direct Manila – London last November as its first foray in European airspace after the European Union lifted a ban last July 12 that prevented the airline from mounting flights to Europe.