Airlines In The Philippines II

[Arianespace]

Some are operated to grow hold. Leased ones however are meant to be return.

[XWB_flyer]

The way I interpret this is there limited to ordering existing types such as follow-on order for A350 like thier option for 6 more and new lease agreement for A330neo and B777X which are considered new variant of their existing A330-300 and B777-300ER. Alternatively this could also mean a delayed in new aircraft orders to possibly next year though I guess will need to wait and see what happens?

[Arianespace]

What is most interesting to look at is the four secured aircraft lessor creditors which holds PAL equity has this jet on the order books.



I'm not saying this is all cast in stone. What I do say however is I remember the CEO talking last year about its newfound interest in cargo, which, if you know reading between the lines, spell an aircraft capable of carrying more cargo than the other. And that points to this aircraft.

If PAL wants to get these lessors out of its neck and getting a say at key decision making, it must pay them out by redeeming their shares. This is what they are doing now, first with the unsecured ones followed by secured creditors. The first one is already reported. The other is still in the oven. Board meeting is coming. So this must be it.

[Evodesire]

I hope someone can explain how Cebu Pacific manages to keep a young and efficient fleet and why PAL cannot do the same.

[chowpau]

Evodesire wrote

I hope someone can explain how Cebu Pacific manages to keep a young and efficient fleet and why PAL cannot do the same.

They have different business model

[Evodesire]

In this case, how does Cebu Pacific do it? Its like they order planes then after 10 years or so, they acquire new planes and replace the old ones and then the cycle keeps going. How are they able to work things around with manufacturers, lessors, and financial institutions?

[XWB_flyer]

LH just made an order for 22 New long-haul aircraft the most noteworthy development is 10 A350-1000 which is not an exciting in service the remainder 5 A350-900 and 7 B787-9 are in service with LH and possibly transfer to there other subsidiary namely Swiss and Austrian. Although its possible the 5 A359 are mean to eventually replace those currently on lease (Ex-PAL frame) with so many on order AB will surely be busy with their line.

https://www.google.com/amp/s/www.aerotime.aero/articles/lufthansa-orders-22-long-haul-aircraft-including-a350-1000s/amp

Also I wonder if PAL will take a more LH approach when it comes to their fleet development and is slow moving away from the CX style fleet planning?

[Arianespace]

You forgot CEB being rescued by a firm called INDIGO PARTNERS. They owned most of the new A22N plane coming. That is one reason why Lance step down as CEO. Szucs took his place.

PAL on the other hand is still controlled by PAL Holdings of the LT Group. While aircraft lessors own less than 20% of PAL, they have right of first refusal, ie acquisition of new aircraft. Its an albatross on their neck, so to speak.

Unsecured creditors, which include domestic banking giants and international aircraft leasing companies, now own 20.5 percent of Philippine Airlines after they agreed to convert loans into equity, giving them a stake in the flag carrier.

Read more: https://business.inquirer.net/342271/banks-to-gain-equity-in-pal-holdings-with-debt-

 

And this is where part of aircraft deposit financing comes in. One element of low finance charges is paying all your creditors what is due them, and this they are trying to address now.

The holding company also disclosed that Philippine Airlines was in negotiations with international lenders to borrow another $100 million via a three-year term loan deal.

 

[JNC03]

So PAL will have a deal with Boeing? I mean they will have 787-9 Dreamliner soon when things are fixed already?

[Arianespace]

Let this be the answer to your question,




And possibly, this too, without stopping in the middle.



No brainier, really

[meronbopis]

I wonder if anyone lost their job after Mr Stanley explaining to the group he has no intentions of operating all cargo flights to Austria.   :)  (see screenshot)

Is there a realm of possibility of making use of ANAs grounded fleet (777, 788, 789) as temporary uplift

But heres the radical one- 3 388 that ANA is now using for Hawaii to be wet leased for PR transpacific.  Just block off the First Cabin.  I believe the cabin is dense for the JP-HI traffic.

[JNC03]

That's why China Airlines will replace their A330s with 787s, deliveries will start on 2025

[JNC03]

Simpleflying mentioned 32 planes on order in their article about PAL

https://simpleflying.com/philippine-airlines-foundation-anniversary

[XWB_flyer]

I ckeck the site couldn't find any mention of 32 aircraft on order, I think it was a typo error and has since been corrected (13 A321neo on order)

[JNC03]

Yes I think its a typo and corrected already

[XWB_flyer]

Emirates and PAL announced interline parthnership:
 https://www.emirates.com/media-centre/emirates-and-philippine-airlines-announce-interline-partnership/

[Arianespace]

meronbopis wrote

Is there a realm of possibility of making use of ANAs grounded fleet (777, 788, 789) as temporary uplift

The realm is possible. They still have 4 789s on the order books. The grounded fleet, I don't think so. Their passenger configuration are too generous.

Perhaps, you could also missed this strategy, ANA might buy the interest of aircraft lessors and increase their participation to 20%. Its 10% interest has been diluted by Chapter 11 Reorganization. PHI and ANA interest in PAL combines for 78% now, with 20.1% belonging to creditors.

Under the reorganization plan, PAL offered the impaired creditors a mechanism to swap their PAL shares into shares of PHI “so that they would have the ability to trade them on the PSE.”
https://www.bworldonline.com/corporate/2023/02/28/507280/pal-approves-exchange-ratio-of-15-571-for-share-swap/

This strategy is not even denied by management officials themselves. ANA did not also deny or confirm their intent to do so. The corporate trick however is not lost, as creditors may swap their shares at PAL for PHI so ANA could buy them in bulk. Anyone could actually buy them. Its creditors however is not in the business of running an airline. ANA is.

Now, if you look at PAL booking website. ANA is already there.

[JNC03]

Four 789s for PAL?

[JNC03]

IndiGo is interested on operating widebody aircraft sparking battle between Boeing 787 and Airbus A330neo

www.reuters.com/business/aerospace-defense/indigo-pits-boeing-against-airbus-record-jet-order-talks-2023-03-03/

Looks like PAL is not the only airline interested in 787 right now

[JNC03]

Cebu Pacific will be leasing five aircraft this year as it aims to address growing capacity and passenger demand.

“Cebu Pacific confirms an additional five aircraft will be entering its fleet in 2023 on operating leases. These fleet are in addition to the orders that will be delivered from its Airbus Contract,” Cebu Pacific President and Chief Commercial Officer Alexander G. Lao said

https://www.bworldonline.com/corporate/2023/03/02/507924/cebu-pacific-readies-entry-of-five-more-aircraft-in-2023/?amp