PAL president and chief operating officer Capt. Stanley Ng said the flag carrier is mulling an order for 60-70 aircraft. Including existing orders, this could add up to almost 100 new planes. The plan was initally reported by ABS-CBN.
Big picture
PAL continues to rebuild its fleet amid cutbacks during its brief Chapter 11 bankruptcy process three years ago.
The airline has pending orders for 13 narrowbody Airbus A321neos and nine long-range A350-1000s. They also plan to exercise an option to purchase three more A350s, Ng told InsiderPH.
“It’s a no-brainer. Planes are difficult to get,” he said on Tuesday.
PAL, whose listed parent firm PAL Holdings is readying its balance sheet by doubling capital to P30 billion, ended the first quarter of the year with 86 aircraft.
Competition
Airlines are locked in fierce competition to acquire planes as manufacturers like Airbus and Boeing struggle to keep up with demand, driven by the red-hot revenge travel trend.
Last month, Gokongwei-led Cebu Pacific said it will order up to 152 narrowbody Airbus planes worth a record-breaking $24 billion (P1.4 trillion) at list prices.
Europe flight plan
Ng said PAL is on track to launch its 8th US destination—flights between Manila and Seattle—in October, and for next year, the flag carrier is studying new routes in Europe.
Ng said their priority locations are Italy, Spain, and France. “Those are the top three, I would say,” he said.
What’s next?
Ng said PAL is closely monitoring developments at Manila’s Ninoy Aquino International Airport (Naia), which will soon be privatized with the San Miguel Corp. consortium taking over in September.
He remains optimistic about improvements in Naia and their growth moving forward.
“For the moment, Manila is really congested. You can’t even add flights,” Ng said. "But this is good [for expansion]. Overall, it's good for the economy".
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
