Airlines In The Philippines II

[Arianespace]

To have that leases in perspective, PAL owes LTP US$80.8 million. LT and LH owns LTP. LH demands PAL pays this MRO debt. Under the various restructuring support agreements (RSAs) PAL entered during C11, one of them was the sublet of widebody jets with nowhere to fly to LH. PAL continues to pay the bank that finance the acquisitions from the OEMs, through the $505 million in DIP financing supported by Buona Sorte Holdings (BSHI) and BDO which also now is its stockholder thru equity swap. Now you remember that of course! LH leases goes to pay the $80 million that PAL owes to LTP. Both LH and LT wins. Is that not a brilliant idea? PAL continuing to pay OEM bank after C11 is clear manifestation of financial lease transaction, where PAL ultimately would become its owner. Which of course is consistent with Stan's declaration that the A359 is gone because PAL doesn't have control over it. You don't even see LTP on this list because they are unsecured ones. But you can see who owns the other two 359s flying and they are equity owners of PAL now. They are PAL and so does the two other.

JNC03 wrote

LIST OF CREDITORS OF PHILIPPINE AIRLINES, INC. WHO PARTICIPATED IN THE SHARE SWAP TRANSACTION WITH PAL HOLDINGS, INC

[Evodesire]

Now clearer! And speaking of A350s, PAL just announced that they are adding one more frequency between Manila and Toronto utilizing A359s beginning April. Can only 2 A359s cover YYZ and JFK flights all in all given the additional frequency?

[Arianespace]

Evodesire wrote

Can only 2 A359s cover YYZ and JFK flights all in all given the additional frequency?

No. You obviously forget they are reducing JFK frequency at the same time YYZ increases

Manila – New York JFK eff 31MAR24 Reduce from 4 to 3 weekly, A350-900XWB
PR126 MNL1940 – 2315JFK 350 246
PR127 JFK0140 – 0645+1MNL 350 357

Manila – Toronto eff 31MAR24 Increase from 2 to 3 weekly, A350-900XWB
PR118 MNL1635 – 2000YYZ 350 357
PR119 YYZ2330 – 0345+2MNL 350 357

[romantic_guy08]

Saw this vid and this might work for PAL... a tie-up with a bus company that provides seamless connection to several points in Luzon that are not served by airlines like maybe Batangas, Cavite, Quezon... or all the way to Pampanga, NE, NV... passengers can book it through the PAL website, bagged are checked through and they board through some bus gates... it could actually work... might be higher chance of working than that failed Mabuhay Express attempt and maybe a lower CO... this is literally... an airBUS...

[JNC03]

Will PAL somehow futureproof their orders like 5J will do next year?

Reserving their slots to aircraft manufacturers ahead of time to avoid long lines when they need planes to expand like other airlines are doing now.

Expanding or ordering more for 2030 onwards for the opening of NMIA and developing new networks and hubs like Cebu and Davao. Having 10+ planes each type will also prevent them from facing problems when one or two of them is in maintenance or having some issues. It will not delay their flights which cost $$$$.

Is the future of PAL A321neo order looks well amid P&W issues or will they not put all the eggs in one basket like 5J?

[Arianespace]

This was thought of by CEB sometime in 2012 if i recall it right. CAAP and AVSECOM shot down the idea as security nightmare. What we have now is the hybrid version.

This one

International-domestic-province. Done this service number of times.

As for the rest, this is what you get



Figure what security?

This one

[JNC03]

PAL, the country’s premier flag carrier, and major American carrier United Airlines (United) are exploring  possible code sharing arrangement to further boost direct air travel between the Philippines and US.

According to Ng, a code sharing with United is still under study to “offer flexibility for our customers.” While healthy competition is good, he stressed that partnership would a lot better for the two airlines.

The idea is rather than fight for market, Ng said it would be better to promote the country to attract more tourists and benefit in the big pie. Ng, however, said that the recent foray of United for a direct non-stop US-Philippine flights have not affected their passenger volume in the third quarter because of the high-volume demand.

For its presence in Europe, the 44-year-old PAL leader hinted they may likely consider Paris for its direct connection to Europe because of the visa issue. He said it will take between eight to 10 months of preparation to mount a new direct flight to Europe.

PAL used to fly Manila-London-Manila direct, but UK has a separate visa compared to the Schengen visa which applies to all other EU countries. PAL used to fly Manila-London-Manila direct, but UK has a separate visa compared to the Schengen visa which applies to all other EU countries.  

Individually though, he said, the UK still has the biggest volume but as a whole, the entire Schengen visa countries would account for the biggest. Aside from France, PAL is also looking at other potential countries for direct flights, such as Italy, Belgium, and Spain.

But, the US will remain its biggest revenue generator because it is closer than Europe. “Geographically, we have an advantage,” he said.

https://mb.com.ph/2023/11/28/pal-united-explore-code-sharing-arrangement

[JNC03]

The country’s biggest carriers Cebu Pacific and Philippine Airlines will raise their capital expenditures next year to fund some of the largest fleet expansions to date in Philippine aviation.

Cebu Pacific will hike its capex guidance by almost a fifth to P50 billion in 2024 from P42 billion this year, mainly for the addition of 16 aircraft to its fleet.

Likewise, Cebu Pacific will place a firm order next year for the acquisition of up to 150 jets from either Airbus or Boeing in a transaction that could possibly reach $18 billion at list prices.

Flag carrier PAL, for its part, is in the process of drawing up its spending guidance for 2024 but also projects an increase to pay for aircraft deliveries and to upgrade amenities and services. The airline is working with Airbus on two orders: 13 narrow-body and nine wide-body jets.

Stanley Ng said the aircraft orders would be funded by a combination of debt, equity, and leases as part of efforts to balance PAL’s finances.

“We will have about 79 aircraft by the end of this year, and we are in discussions with aircraft leasing companies and financial institutions to help us finance the purchase of new aircraft,” Ng told The STAR.

https://www.philstar.com/business/2023/11/30/2315193/philippines-carriers-increase-2024-capex

[Arianespace]

Perhaps you missed this one. Another Q400 is coming back to its fleet. Previously, PAL said it is gone for good. Yet here it is again in MNL flown from Ontario YYB on 24 Nov eastward. This is the newest plane designated for CEB hub as they reopen new routes beginning 14 December. The Q4 fleet ordered in 2016 is restored pre C11.

RP-C5912

[chowpau]

Arianespace wrote

Perhaps you missed this one. Another Q400 is coming back to its fleet. Previously, PAL said it is gone for good. Yet here it is again in MNL flown from Ontario YYB on 24 Nov eastward. This is the newest plane designated for CEB hub as they reopen new routes beginning 14 December. The Q4 fleet ordered in 2016 is restored pre C11.

RP-C5912

saw it last Nov 25 at the hangar

[Arianespace]

A domestic airline seems to be interested to operate this plane. The rumor was first broken by Richard in 2017 to be operated by SMC until it was buried. Another one was broken by JNC03 when Stan visited the Embraer stand at the 2023 PAS. A PH certification is being worked out at the CAAP for this bird. No announcement was given by airlines about it. Strange. It is usually done prior to introduction.

What gives? Could it be associated with the impending jet shortages or just another sub-fleet? After all it can carry 100-146 pax, in between the props and the 320s.

If this interest you more, Q4 lessor is also offering the E2s. The ATR operator was offered the 220 which I think was also offered to the flag carrier. No further information was provided.

For comparison purposes, the 220 cost $30 million more than the E2 at $51 million.

[JNC03]

Time to utilize the Embraer's advantage in the Philippines

AirSWIFT is the highly rumored airline to operate Embraer jets but nothing happened. CebGo checked out A220s before when AirBaltic A220 landed in MNL.

PALExpress is sometimes utilizing Q400s to routes where A320 should be operated like ILO-MNL flights

Meanwhile our neighbour country Singapore certified the aircraft type as Scoot will start the E2 jet operations next year

Air Astana is letting go of their E190 E2s next year in favor of A321s, their fleet of E2s are under five years old

[Arianespace]

Embraer E190-E2 certified by Singapore, first Scoot delivery in March 2024
https://embraer.com/global/en/news?slug=1207308-embraer-e190-e2-and-e195-e2-attains-civil-aviation-authority-of-singapore-type-certification
https://mainlymiles.com/2023/11/30/embraer-e190-e2-certified-by-singapore-first-scoot-delivery-in-march-2024/

Correct. I suspect this to be part of the narrow body jet renewals for GAP. Don't have the confirmation just yet.

[JNC03]

IATA welcomes PAL Express as their newest member today

[Evodesire]

JNC03 wrote

The country’s biggest carriers Cebu Pacific and Philippine Airlines will raise their capital expenditures next year to fund some of the largest fleet expansions to date in Philippine aviation.

Cebu Pacific will hike its capex guidance by almost a fifth to P50 billion in 2024 from P42 billion this year, mainly for the addition of 16 aircraft to its fleet.

Likewise, Cebu Pacific will place a firm order next year for the acquisition of up to 150 jets from either Airbus or Boeing in a transaction that could possibly reach $18 billion at list prices.

Flag carrier PAL, for its part, is in the process of drawing up its spending guidance for 2024 but also projects an increase to pay for aircraft deliveries and to upgrade amenities and services. The airline is working with Airbus on two orders: 13 narrow-body and nine wide-body jets.

Stanley Ng said the aircraft orders would be funded by a combination of debt, equity, and leases as part of efforts to balance PAL’s finances.

“We will have about 79 aircraft by the end of this year, and we are in discussions with aircraft leasing companies and financial institutions to help us finance the purchase of new aircraft,” Ng told The STAR.

https://www.philstar.com/business/2023/11/30/2315193/philippines-carriers-increase-2024-capex

Any news about the new Boeings, or perhaps the possible 787s? Singapore Air Show is happening this Feb 2024, hence, are we expecting any announcements from PAL by then? I think they better hurry up in putting in more orders. Thai is expected to put in a huge widebody order too.

[JNC03]

Yikes

[JNC03]

PAL might copy Qantas A330 replacement

Qantas moves to replace its workhorse Airbus A330s with a fresh tranche of two dozen Airbus A350 and Boeing 787 orders from 2027-2028.

Yes, you read that right: there won’t be a straight 1:1 swap where the 28 A330s make way for 28 of another single type of jet.

Instead, Qantas will share post-A330 duties between 12 Airbus A350-1000s and 12 Boeing 787s. Those A350s will be separate to their Project Sunrise siblings.

Meanwhile, the Boeing 787 order will be split between four Boeing 787-9s, of which Qantas already has 14 in its hangars, and eight of the ‘stretched’ 787-10 version, which can carry more passengers but over a slightly reduced range.

https://www.executivetraveller.com/news/qantas-a330-replacement


On PAL's case A359 instead of A35K
For the 787 -9 and -10

[JNC03]

Welcome back to the fleet

[Arianespace]

Another plane PAL said is not coming back. And yet here she is. See... Told ya

[chowpau]

surprised also RP-C3348 is also back to CEB