Airline News
PAL delays deliveries, plans Papua New Guinea service
February 10th 2015
A report in the Malaya Business Insight, quoting Philippine Airlines (PAL) president, Jaime Bautista, said PAL was delaying the delivery of new aircraft as part of its cost-saving programme. Read More » Bautista said PAL and the Airbus Group have agreed in principle to defer the delivery of a total 38 A320-family and A330 aircraft from 2020 to 2024 without penalty or interest.
Although profitable in the last reported quarters, PAL is still ailing from significant financial losses incurred previously. The Manila-based flag carrier has admitted that it was overambitious when it placed a $9.5 billion order for 64 new Airbus planes in 2012 when it was majority-controlled by the San Miguel Corporation. PAL, now back in the hands of Lucio Tan, its former majority-owner, has since also drastically reduced its presence in Australia and shelved plans for network expansion in Europe, where it currently operates a five-weekly Heathrow A340-300 service only.
Meanwhile, Papua New Guinea’s The National surprised last week when it reported that PAL would “start operating direct flights to Papua New Guinea”, based on a statement from the country’s Trade, Commerce and Industry Minister, Richard Maru. The official said flights would be twice-weekly from April 3 and “a blessing to [its] people”, many of which seek educational and medical opportunities in the Philippines. No carrier other than the country’s flag carrier, Air Niugini, and Qantas currently operate scheduled services to Papua, a nation notorious for charging exorbitant landing and service fees.
