News
PAL set to order the A350 as Star Alliance says it is interested in Philippines LCCs
November 27th 2015
Philippine Airlines (PAL) is "close" to committing to at least six A350-900s, including an undisclosed number of High Gross Weight (HGW) variants, to replace its outgoing fleet of six A340-300s, CAPA has reported. Read More » The flag carrier was evaluating both the A350 and the B787 to launch non-stop flights to the Eastern U.S. particularly New York’s JFK and Chicago’s O'Hare. PAL chief, Jaime Bautista, told Reuters on Monday the airline would place firm orders for six aircraft, worth approximately $1 billion, for delivery in 2017 and 2018, with the option to buy six more with deliveries in 2019 and 2020. A formal announcement is expected by year-end.
In other PAL news, Star Alliance chief operating officer, Jeffrey Goh, has said his alliance could see an opportunity to expand its network in the Philippines through budget carriers. "Our members are constantly looking at ways to expand the network whenever possible. The Philippines has shown that there is a market here, especially in the budget air sector," said Goh. He added Star was aware it might have to rely on low-cost carriers to further penetrate the island nation. Goh indicated the alliance was planning to work with budget carriers in Brazil and India under its "connecting partner model", which will assist it in boosting coverage in markets existing members do not operate.
In Manila, the city’s notoriously congested Ninoy Aquino International Airport (NAIA) has reported it lost an estimated $2 billion because it had to cancel more than 1,000 flights while the recent geopolitical summit of Asia Pacific Economic Cooperation (APEC) leaders was held in the city. The VIPs’ visit required the airport to seal off a runway and close multiple support facilities.
The APEC summit also resulted in losses of more than $18 million for PAL because it had to cancel some 700 international and domestic services while the gathering took place. Budget carrier, Cebu Pacific, which this week announced its first service into U.S. territory with a four-weekly flight to Guam from March, said its losses could around $8.5 million.
