Airlines In The Philippines II

[Evodesire]

Is 2P looking into an A321 - Q400 fleet in the future? I think their A320s are getting older with an average age of 11.7 years the A321s at 6 years.

I remember having a chat with JJB in one seminar where he was guest speaker. I remember him saying that if it was only him (referring to a personal thought), he would choose to maintain a fleet of Airbus all the way, particularly A350, A330, and A321neo.

Though I think you really need a Boeing if you want to fly to US mainland. Can't discount politics.

What PAL needs to address immediately though is there marketing. Walang kwenta! Especially at this time when PAL really needs more and more passengers. We can never just rely on that "PAL is PAL" mindset. Either step up their game and adapt to change, or become another Nokia story.

[XWB_flyer]

Arianespace wrote

GAP is dependent to its parent PAL. It is actually using PAL planes. Not leased but owned. GAP doesn't owned planes now. Unlike before when they actually owned one. the B732s and B733s. If PAL is deferring  orders, so are there fleet.

Personally though, you don't need Neo planes on domestic run. It do wonders for 4-8 hours flight. The longest our country have is 2 hours between Laoag and Gensan. CEB meanwhile operate their neos overseas. It do well on that sector. Not so on short rotations.

Yeah for short flights I guess the NEO is not really needed. Which got me thinking maybe acquiring 2nd hand late built A320ceo similar approach to Delta could be a cheaper alternative to leasing newbuilt A320neo. Another option would be acquired clean-sheet design like the A220-300 or larger A220-500 if Airbus decide to introduce it in the next decade

[Arianespace]

2P already has the future fleet, the next gen Q400s to the A321neos.The transition is not complete however considering their order deferrals from Airbus. Make no mistake it will be complete soon. And so are that of its parent. If deliveries are completed that would be it for the narrow-bodies.

And when its completed, it would be the widebodies turn for upgrade. First to go is B77w's with reg. 77 followed by 76. If you wondered why this plane is still flying considering their age, it is because PAL sold them to Gecas and castlelake under a leaseback deal that ends on 2025/26. They receive substantial amount of money to buy the A350s. They cannot simply dropped its leases because whether they are flown or not they will still have to pay because that is a guaranteed contract. What do you do? Fly them. IF you also noticed, those lessors name can be found on the bankruptcy petition in New York as secured creditors.

Meanwhile, PAL still has 2 owned 77w's sitting down. So the long haul is pretty much covered until 2030.

[Arianespace]

KLM celebrates its 70th anniversary to the Philippines yesterday. It is the sole European carrier operating to MNL today. It has also became a de facto Philippine carrier doing " balikbayan flights", transporting mostly maritime crews from Europe.

The airline launched services to MNL on December 5th, 1951, when MNL became an en-route stop on its Lockheed Constellation service from AMS to Tokyo's old TYO airport.


KLM and PAL has long history together. Remember the story I told you about the dispute between BOAC and PAL, when the latter was still a world airline? And why its Kangaroo network died?

It is because of this airline flight to Tokyo that our government awarded, that makes BOAC crazy and prevented PAL from doing the same thing westward, picking passengers to London. Certainly, the Brits did not practiced fairness that time around.

Well, the old KLM route is finally revealed now

[Evodesire]

Is PAL considering to exercise their 6 more options for A35K in place of the old 777s?

Sorry, I'm trying to grasp that of the NEO.

PAL has 13 remaining 321NEOs to be delivered. Will they be sharing these with PAL Express? Or will PAL Express have its own narrowbody orders on top of the PAL NEOs?

[Arianespace]

Consider, yes. The decision to exercise order was expected to be made in 2020, as they intend to introduce 3x SEA, double SFO and fly third LAX flight. IIRC, they already started doing 10x a week to SFO and 17x a week to LAX before the pandemic. And then there was CEB-LAX in the pipeline. Their summer timetable last year was the most they got in its history. Had it materialized they won't have enough planes to service all routes without additional planes. And then covid came.

As to 2P, like what I said, all their planes comes from PAL. So definitely some of the 2012 orders are destined to GAP. Pre-pandemic they already have a new fleet of 199 seater A321s. They got 5.

In 2016, PAL amended its order in 2012 to add more neo, that is, 23 A321ceo, and 21 A321neo four of which are going to be LRs, while the rest are SRs. To date, 8 SRs and 2 LRs are delivered.

Note, there are only 10 neo's delivered so far. The 13 others are deferred. It remains to be seen whether PAL will convert some of it to XLR which enter service in 2023. It also remains to be seen whether it can actually fly 4700nm profitably to Auckland.

According to JJB in 2018, Neo were meant to replace PAL A320 and A321 for international routes as they are going to be equipped with IFEs. Which make all A321ceos, all 23 of them head to GAP as up-gauging of fleet at congested NAIA.

There was even this plan to transfer 6 A330 cattle class to GAP to service all of the middle east. In fact, GAP indeed made it to DXB until it was taken back by PAL.

[XWB_flyer]

Out of 8 A321neo 5 are now back in service

RP-C9933
RP-C9935
RP-C9936
RP-C9937
RP-C9938

Meanwhile 9930, 9932 and 9934 continue to be in active.

[XWB_flyer]

Happy New Year Everyone and Welcome to 2022!

PAL Announced they Emerges from Chapter 11 gonna be curious how things will go this year for the Airline industry in the Philippines

https://www.businesswire.com/news/home/20211231005067/en/Philippine-Airlines-Emerges-from-Chapter-11-Reinvigorated-for-the-Future

[Arianespace]

One positive thing about C11 exit is the intent to grow cargo business. It helped them alot during pandemic. In fact, 77w do rotation daily to CAN without pax.  This never happened (exclusive cargo) in 2001.

Most surprising of all is they keep TLV.

Another surprise which is still in wraps is the net profit reported in the 4Q.

[Evodesire]

Which aircraft are they planning to convert to preighters? GSM did say that they are planning to convert some aircraft into freighters. A321 and A330 now have P2F programs.

[Arianespace]

No idea. Perhaps none. I know them to carry it only on their belly, both A330 and 77w. No Pax.

Domestic wise, they still have their old Q4s flying around. Maybe, just maybe follow the footstep of SRQ. Speculative but possible. Who would have thought Q4s flying trunkline between MNL and CEB? It is now. So they are adjusting to what fits.

[Evodesire]

Read from Simple Flying that PAL is keeping 4 A350s and 7 777s. Nice!

[cabinpressure]

If PAL does keep the 4 A350s, that should bode well for their LHR service, which was absent from their rehab press release.

[XWB_flyer]

That could mean 3504 is staying and 3507 could be returned to service soon unsure about 3503 and 3506 faith though will have to wait and in a couple of years

[Arianespace]

All the widebody fleet will come back in 5 years time. If all goes well, 1 more 77w from voyager will come back this year. As to RP-C7782, here is the corresponding report on Avation from wall street journal:

By Michael Susin

Avation PLC said Tuesday that its customer Philippine Airlines has exited bankruptcy, has received court approval for its restructuring plan, and is up to date with its payments.

The aircraft leasing company said the plan was effective Dec. 31 and that it has been collecting monthly rent on the aircraft leased to Philippine Airlines based on hourly rates of use in the period from September.

The lease will follow the original scheduled termination date, the company said. From March 1, the payments will revert to a fixed market rate rent together with cash maintenance reserves, it said.

The company said in September that it has agreed to retain the use of a Boeing 777-300ER on lease after Philippine Airlines filed for U.S. bankruptcy.

"The restructuring of Philippine Airlines Ltd. is a [significant] recovery and positive development for our investment in a Boeing 777-300ER aircraft", Executive Chairman Jeff Chatfield said.

Write to Michael Susin at [e-mail]

As I mentioned the unannounced positive cash flow earlier, another source picked it so probably not my fault anymore for sharing it here.

The airline expects to generate operating income of $220m in 2022 and $364m in 2023. Based on the projections and available data, earnings before interest, taxes, depreciation, amortization and restructuring/rent costs (EBITDAR) margins are expected to improve from 2% in 2020 to 7% in 2021 and by as much as 27% in 2025.

[Evodesire]

Sadly, 3507 is heading to its new operator tomorrow.

[Arianespace]

It left quietly this morning to Malta. 3507 belongs to Goshawk. another goshawk is still flying for PAL. 3508

[XWB_flyer]

That leaves 3504 when will it leave? Also I'm curious those PAL received some kind payment for sub-leasing them or they will go to the lessor until end of the 10 year agreement?

[Evodesire]

Is 3504 leaving? Airfleets show that it is active. On the active fleet as of today are:

7x B77W
3x A359
8x A330
12x A321 - I believe some of these are with PAL Express. They have been increasing domestic flights prior to Omicron surge.
5x A21N
3x A320

Will these still be reduced or added?

[XWB_flyer]

Posted this previously it already has registry D-AIVB

https://m.planespotters.net/airframe/airbus-a350-900-rp-c3504-philippine-airlines/3wvm55

It seems none of the Boeing 777 are going anytime soon the earliest possible date will be 7777 and 7776 though it seem PAL is planning to hold them until 2025 and 2026 respectively delivery to LH will resume in 2027 for there A350-900 from Airbus which is also after the 5 years time Arianspace mentioned about all widebody should returned.