Airline News
PAL considers Airbus deferment, to re-focus on NA instead of Europe
October 14th 2014
Philippine Airlines (PAL) has decided to indefinitely defer its European expansion plans less than a year after starting flights into London. Read More »
General manager (GM) Jaime Bautista told Reuters that PAL intends to focus on more profitable North American routes. It could also be the result of Lucio Tan’s return to PAL a few weeks ago.
PAL decided to return to Europe in November last year after an absence of 15 years caused by financial problems and an EU blacklist.
After London, PAL had intended to expand over the course of 2014. Amsterdam, Frankfurt, Paris and Rome were all cited as future destinations by the carrier's then president Ramon Ang.
Bautista also said he was in negotiations with Airbus over the deferment of planes PAL has on order as part of a $7 billion deal for 44 new A320 and 20 A330 aircraft signed in 2012.
"We have to discuss with Airbus," the GM explained. "It can be deferred, but of course that entails cost if you defer delivery."
In August, PAL decided not to exercise the purchase rights for eight A321neo aircraft.
PAL is working on a plan to return to profitability after two consecutive years in the red, with a view to potentially attracting a “strategic investor”, Bautista said.
Japan’s All Nippon Airways (ANA) – with whom PAL forged a close-knit codeshare agreement covering 37 domestic and regional routes last week – has been rumoured for some time now to be interested in acquiring an equity stake in PAL.
