Airlines In The Philippines II

[JNC03]

The competition in the domestic market is high, Filipinos are known for being kuripot in air travel. That's why Cebu Pacific and AirAsia are recovering faster compared to PAL.

The main market of PAL is the international market that's why they need to have more widebody planes to restore routes. Aside from that improve their cabin product to compete with other international airlines operating in the Philippines.

[XWB_flyer]

JNC03 wrote

The competition in the domestic market is high, Filipinos are known for being kuripot in air travel. That's why Cebu Pacific and AirAsia are recovering faster compared to PAL.

The main market of PAL is the international market that's why they need to have more widebody planes to restore routes. Aside from that improve their cabin product to compete with other international airlines operating in the Philippines.

I know that PAL main market international travelers and domestic to either be the secondary or possibly third priority. But I wonder if PAL considers its domestic network as a feeder for its international network. Would it be better to just have one hub instead of two or three? (This is impossible considering MNL is at capacity and will be some time before NMIA becomes an option). The other hubs that PAL has are CEB and CRK.

From a network perspective Upgauging routes at MNL from A321 to A330 (or its eventual successor?) Is the best approach while using the smallest type for either opening new destination or to other hubs such as CEB which is more centrally located than MNL. However, the Pax from MNL has a stronger purchasing power than most of the other major cities in the country and are more likely to pay more then those from other parts of the country who are more willing to pay less to get from Point-A to Point-B.

[Evodesire]

Air India just placed in the largest aircraft order in history with an order of 470 planes from Airbus and Boeing, mix of widebodies and narrowbodies. Thai, which went into chapter 11, is also switching to new planes in order to run more efficiently. Cebu Pacific is replacing all their old planes with bnew NEOs. AirAsia will resume delivery of A321neos in 2024 with Philippines as a priority.

Hoping PAL learned their lesson of always staying on the 'safe side' with their decisions. While keeping old planes did help in the beginning, everything is now catching up. The only way I see them getting back up is to really get new planes and having a more consistent product. Hoping to see an aircraft order soon. Singapore Air Show, Dubai Air Show, Farnborough, etc.

[seven13]

I think it can’t be helped but push deliveries further back due to cash strapped during the pandemic. I guess there were more pressing matters that needed to be fixed first before aircraft upgrades.

[XWB_flyer]

I think long-haul is a more pressing issue for PAL compared to regional maybe except for the A330 Replacement. I could also see them holding on to their classic A330 for a little longer and could be assigned for domestic used.

[seven13]

Definitely, the longhaulers need a major fix/upgrade. BTW, no more A330 classics since long ago, GE powered engines. All current A330 are RR powered, main difference is the cabin config.

The B777s were affected much because it was the main aircraft used for cargo flights. While the A330s were also used, the 777 were doing almost all cargo flights during the pandemic mainly to the US, Canada and Australia.

[JNC03]

The difference is Air India has a new owner
new owner = fresh funds for refleeting

Cebu Pacific received a $250 million investment from the International Finance Corporation (IFC) via its Emerging Asia Fund and Indigo Partners. While AirAsia PH will receive those A321neo from the parent company.

PAL doesn't have any of those things, they are generating money by themselves. I think the problems they have now, especially with their fleet are inherited from SMC when they own the majority stake in the airline. They have too many A321ceos and some of them are owned making them hard time to let them go, for the A320s the same thing. Some of those planes were acquired during the time of SMC's ownership of PAL.

PAL needs to focus on their market which is the long haul market, they need to be competitive by having nice cabin products and planes obviously (to replace old ones). If their long haul routes are generating money again like before, they can afford to ditch those A320ceo family planes to replace them with newer neos.

[Evodesire]

Speaking of A321neo, is there any news if PAL will renegotiate the delivery of those planes? China has opened and I expect that the travel demand trajectory will suddenly boom up. China makes 20% of PAL's market.

I think PAL no longer operates A320s. I believe that either some are retired and some went to 2P.

[Arianespace]

Hold your horses there. Did you know Aircraft lessors are now equity owners of PAL? Decision on where to take planes comes from them first.

[Arianespace]

PR owned A320 planes, ie 86xx are with 2P, and they are 15 years old or thereabouts. There is no problem for these planes operating domestic. A32N 993x are operating premium regional routes so no problem there either. They are adequately addressed.

[romantic_guy08]

Arianespace wrote

Bus gates are downstairs. Currently, there are two bus gates, 1 international, 1 domestic. When it becomes all domestic transfer desks is converted to 2more bus gates. There are currently 10 remote stands and 12 contacts at T2.

I think there are already 3... 2 in the domestic side, 16A and 12A. And one international...

[chowpau]

all of PAL's 320s are with 2P. The cabin were changed to all economy similar with the 839X series and the first windows besides doors L1 and R1 where added.

[Evodesire]

So all 8 PR A21Ns are back to flying including all 6 LRs and the 2 ACFs?

[seven13]

With the exception of 9935 which is in CEB awaiting engine change as per @crash&burn, the rest are actively flying since 2022

[frequentflier]

I can’t find past flights for 9932. Is it AOG as well?

[XWB_flyer]

Arianespace wrote

PR owned A320 planes, ie 86xx are with 2P, and they are 15 years old or thereabouts. There is no problem for these planes operating domestic. A32N 993x are operating premium regional routes so no problem there either. They are adequately addressed.

Considering aircraft lessors have a controlling stake in PAL I wonder if will some used yet newer A320ceo in the future instead of acquiring factory fresh A320neo?

[AnonBoy]

frequentflier wrote

I can’t find past flights for 9932. Is it AOG as well?

This has been grounded with most of the other planes during the height of covid. Looks like it never flew again until today.

On other news, 2 A330s are going to be reconfigured in the coming month or two. I think this is the removal of the premium ecy in line with what I mentioned last year.

[Evodesire]

Will 9932 ever fly? China has opened and I am sure they will need more planes. Other airlines are fielding their newest and most efficient planes.

[XWB_flyer]

AnonBoy wrote

On other news, 2 A330s are going to be reconfigured in the coming month or two. I think this is the removal of the premium ecy in line with what I mentioned last year.

Will they be the only A330 planned to be reconfigured? Any plans for the remaning Bi-class will they be gradually replaced or keep in the fleet much longer then planned I could also see their seats being swapp around once PAL reconfigured thier Tri-class A333 to save cost!

[crash&burn]

9935 back in service