Airlines In The Philippines III

[Arianespace]

romantic_guy08 wrote

I wonder if the CAB/DOTR will have the political will to implement something similar... ?

On Tuesday (April 30), Philippine Airlines President and COO Capt. Stanley Ng said it is tightening its flight schedules and maintenance program in the wake of the new US DOT rule.

“[The new ruling] is going to affect us in a way now,” Ng said. “But of course, that's not what we want. We don’t want disruptions as well. So we’ll try to be more reliable to avoid that; these [cash refunds] are for exceptional cases naman.”

Canada had actually imposed a similar ruling for carriers flying to destinations within its borders. PAL also flies to Vancouver and Toronto.

“If it’s force majeure, I don’t think we have to pay,” Ng said. “If the [flight] delay or cancellation is caused by the airline then that’s the time you have to pay…so we just have to be more disciplined in terms of scheduling flights [and] scheduled maintenance programs.”

https://www.esquiremag.ph/money/industry/philippine-airlines-new-us-cash-refund-rule-a3005-20240501

[Arianespace]

Evodesire wrote

I somehow feel that PAL is regretting its decision to return too much A350s. But then again, that was a decision made by the GSM admin. I am not sure if it would be the same decision if the group of Capt. Stan were the executives during that time. Or they would have exerted everything to keep the A350s and to properly forecast the resurgence of demand.

I'm pretty sure they are not. GSM or otherwise. It would still be the same decision. They don't have a choice.

[romantic_guy08]

Arianespace wrote

romantic_guy08 wrote

I wonder if the CAB/DOTR will have the political will to implement something similar... ?

On Tuesday (April 30), Philippine Airlines President and COO Capt. Stanley Ng said it is tightening its flight schedules and maintenance program in the wake of the new US DOT rule.

“[The new ruling] is going to affect us in a way now,” Ng said. “But of course, that's not what we want. We don’t want disruptions as well. So we’ll try to be more reliable to avoid that; these [cash refunds] are for exceptional cases naman.”

Canada had actually imposed a similar ruling for carriers flying to destinations within its borders. PAL also flies to Vancouver and Toronto.

“If it’s force majeure, I don’t think we have to pay,” Ng said. “If the [flight] delay or cancellation is caused by the airline then that’s the time you have to pay…so we just have to be more disciplined in terms of scheduling flights [and] scheduled maintenance programs.”

https://www.esquiremag.ph/money/industry/philippine-airlines-new-us-cash-refund-rule-a3005-20240501

yeah... but only for flights to the US since PAL has to comply with the new US DOT regulations...

Now, if only the CAB/DOTR will also apply the same here in the country so all flights departing or arriving the PH is covered..

That will be good for the passengers...

[Arianespace]

Based on experience PAL readily refunded me for a cancelled flight. Not immediately though. As I have to go to their ticketing office. My friend once departing at T3 got a refund on cancelled flight there and then at the ticketing office immediately. Another friend of mine was not so lucky getting a refund as he took CEB. His money went to the travel fund.

However if you paid by card, refund is made through card. Got both experiences. Not immediate though. As the word in the policy implies.

As for compensation of delayed flights, we can pay for insurance to be paid immediately. You'll have that option on check out. The insurer will then go to the airline. Otherwise separately claim it. Payment is not immediate. But if you take your airline ticket overseas, compensation can be had without insurance. I believe that was made possible in EU first due to EU legislation.  Most passenger don't know that compensation exists for delayed flights caused by airline themselves. We have discussed this before.

I get your point. We still don't have immediate refunds or claims, as CAB is two steps behind. We would possibly have this in 2-3 years. Forget Grace Poe in the Senate. Her propose legislation died down there.

[Solblanc]

Arianespace wrote

JNC03 wrote

iPads as IFE is much easier to update with new contents

Did you know that every 5 years a new IFE system is introduce into the market to new planes. Basically the life of the IFE is 6 years before they are brought into obsolescence. This was the reason why lease of planes end between 6-8 years. Also the reason why airlines shop for the newest IFE before installng it to their plane. This was also the reason why aircraft reconfiguration happen to introduce new seats with IFECs. Case in point, Singapore Airlines reconfigure their seat every 6 years. Every reconfiguration requires Certification. This is usually done during D checks, as this procedure requires longer AOGs.

And then airlines like PAL decides to extend the leases for another six years, without taking obsolescence into consideration. And this is the time where most of the IFEs breakdown due to normal wear and tear. Because they are meant to be used at most for only 8 years. They are not like your average ipads. They are build tough design for use 17 hours a day for 8 years. Imagine what a new ipad would be like with that heavy use. It wont last six months.

PAL decided to keep them longer than it was meant to be. Because they don't want to pay costly reconfiguration updates like what they did with the 744s, and corresponding re-certifications. Case in point, their current B77ws. It leaves a lot to be desired. Skimping this maintenance got them more revenue.

The problem with this management attitude is you don't usually get cannibalized parts from other secondary IFEs market that is beyond economic life for the reason that they are end-of-life products, unlike chairs where you can have it as long as you like. To do that an airline needs to contend again with costly "certification". It would be cheaper for PAL to pay the economic value of losing a single ife to the lessor rather than installing costly replacements to please its passengers.

So airlines like PAL just disable defective unit and give passengers Ipad just like what was shown earlier. It is cheaper that way. And sure does not bid well for a pricey business class. Take your pick.

It’s just funny though that PAL had every opportunity to refurbish the T7s. When the A330s were reconfigured and A350s delivered, they couldn’t make a decision on whether to reconfigure the T7s too. They couldn’t even bring the first six to the same standard as the last 4, so more than half the transpac fleet was making do with angled-flat seats.

I really hope the UA SFO service brings them to their senses.

We’re now in an age where people are posting detailed videos of their flights online. So hard product palang, kita na ang pagkukulang. People will not pay a premium for that. I won’t; I still fly CX despite nonstop options available on PAL.

[Evodesire]

I wouldn't mind paying for a more expensive PAL as long as I get the same amenities and features as their A350s. I think they also have to come to their senses that the cabin crew can only do so much. BPA still has its limitations and passengers, whether we like it or not, passengers really look into the comfort creatures they get like the seats, IFEs, and comfort. I am happy though that they are reconfiguring their A321ceos but I guess they were torn to reconfigure their old 777s or just get new planes, which the latter won. But didn't they also consider of extending those newer 777s and at least reconfigure them too?

One big complaint PAL is receiving from the consumers is inconsistent product. While we do understand why, passengers don't. All they want is value for what they pay for, especially for an expensive airline like PAL.

[xzibit31]

my main  gripe with PR is inconsistent product, defective product, expensive fares, and head pursers from hell...

[Arianespace]

PAL Net Income Dips In Q1 2024 to US$81M

Philippine Airlines (PAL) said Thursday its comprehensive income fell 25 percent in the first quarter to $81 million from $108.2 million in the same period in 2023.

PAL’s operating income amounted to $118.4 million, or 12 percent lower year-on-year, on higher operating expenses, as a result of the 13-percent increase in flights and the continued industry-wide price hike on services covering maintenance, ground handling, airport and passenger service charges.

PAL’s consolidated revenues grew 6 percent to $826 million in the first quarter, driven by a 13.6-percent increase in passenger volume.

https://manilastandard.net/business/314442503/pal-booked-81-m-income-in-first-quarter.html

That is basically the cost of keeping the plane off the ground. It is going to rise more as other AOGs fly. With expected growth in revenue. Not really rocket science. Still, a big amount of money to pay and minimize debts and shore up equity.

The recent 2023 earnings was translated to equity without putting more money in, as was hoped by the Bankruptcy Court. Brilliant move by LT. Promised to put money to the tune of $505 million additional capital, yet have PAL earnings to the tune of $325 million pay for it slowly. That is what they are doing now. The optional $150 million additional financing is not even necessary. Earnings add more value to the airline (+18% stock value), while losses reduces it. Sadly, they aren't translated to dividends. An airline that doesn't pay dividends never incite investors to join.

[JNC03]

PAL Express will replace the seats on their A320s with new one, nothing is finalized now as the bidding will be conducted in the next few weeks. Capacity will still remain the same and no IFEs

There are no plans to add new aircraft as per the recent meeting they had

[Arianespace]

PAL recently paid GAP their debts which was used for capital expenditures, ie seat replacements, etc. Giving money from one hand to the other.  

By the way, GAP doesn't decide when to get a new plane. PAL does

[JNC03]

So when the upcoming narrowbody order of PAL is finalized, 2P can get some of it

[Solblanc]

JNC03 wrote

So when the upcoming narrowbody order of PAL is finalized, 2P can get some of it

The troubles at Boeing seem to be quite serious.

737 deliveries delayed. 787 deliveries delayed. Airlines are pushing back expansion plans.

I would think that this would push PAL towards airbus for everything. As much as PAL wants to have both Boeing and Airbus, Boeing might not be in a position to give PAL what it needs.

A330neos are the only ones with delivery slots in 2026. PAL might be able to squeeze in more A350s as Airbus ramps production up.

Is PAL willing to wait for 787s? Coz they'll have to wait.

The last time PAL decided to wait for Boeing aircraft, they picked the 777-300ER over the A340-600 which  could be delivered immediately. While the 777-300ER was indeed the better choice, if PAL went with Airbus at the time, they would've been able to fly the A346 to LAX before the FAA slapped the country with Category 2. For five years, PAL struggled to send their 77Ws anywhere.

Anyway, let's see if PAL can wait

[JNC03]

PAL scheduled their stockholders meeting on May 25

Expect the approval of 787 replacement I guess

[Evodesire]

Unless they are willing to go for A330Ns for high density ME routes, more A350-900s, and just wait for the 787-9 until 2027. As much as they would want to do an Airbus all-the-way fleet, they are still tied up with the US, especially since PAL's bread and butter are US routes. Politics.

[Evodesire]

Been hearing rumors that RSA is planning to have his own airline. How accurate is this?

[Arianespace]

Solblanc wrote

Is PAL willing to wait for 787s? Coz they'll have to wait.

You do know that its lessor has Boeing delivery schedule spread in 10 years. It may not necessarily be an F6 order but from someone else order book. Remember, the triple seven started with a pair of 36s from GECAS. The rest followed 3 years later with an F6 designation.

[Solblanc]

Arianespace wrote

Solblanc wrote

Is PAL willing to wait for 787s? Coz they'll have to wait.

You do know that its lessor has Boeing delivery schedule spread in 10 years. It may not necessarily be an F6 order but from someone else order book. Remember, the triple seven started with a pair of 36s from GECAS. The rest followed 3 years later with an F6 designation.

Even if that’s the case, existing customers are having to put off expansion plans because current delivery schedules have been delayed. Boeing is nowhere near pre-pandemic capacity

[Evodesire]

Solblanc wrote

Arianespace wrote

Solblanc wrote

Is PAL willing to wait for 787s? Coz they'll have to wait.

You do know that its lessor has Boeing delivery schedule spread in 10 years. It may not necessarily be an F6 order but from someone else order book. Remember, the triple seven started with a pair of 36s from GECAS. The rest followed 3 years later with an F6 designation.

Even if that’s the case, existing customers are having to put off expansion plans because current delivery schedules have been delayed. Boeing is nowhere near pre-pandemic capacity

Boeing is now facing another issue. Falsification. Affected are 737 MAX and 787.

[Arianespace]

What do you know, they are coming. Of course they are. They've been wanting to fly since 2022. Can't seem to secure the right slot out of Terminal 3. Perhaps they are lucky this year with the relocation of AGP to T1.

[JNC03]

After the UA SFO flight to Manila, another route will have an airline option again this time YVR flights

the more the merrier