Airlines In The Philippines IV

[Arianespace]

Actually, they are two separate carriers with two separate certificates and two business models. One is FSC and the other LCC. So the author is correct. Although they only have one owner. And both airlines are profitable in the segment they are in.

There are however two corrections I would like to impart to the author and to all of you.

PAL Express has been fronting domestic since 2013, not 2022 as the author implied.


Second, PAL was forced into alliance mode after losing SFO market to UAL, its bread and butter. While PAL may still have LAX now, that benefit would cease to exist next year. And probably SEA too a year after the next. North America had always been its bread and butter and direct competition is slowly eating it. The best way to grow back market share is by joining alliance.

Figure this out, how come UAL grows SFO while PAL shrinks it?  

[Solblanc]

Yeah, they seem to ignore Richard’s comments saying that domestic is profitable.

PAL domestic has the edge because it’s essentially the only carrier that will respect same-ticket connections. And that is valuable to business travellers, especially those based in the provinces. Cebu pacific doesn’t interline, even within its own network.

As for SFO, by the end of the year, perhaps PAL will make it their next A35K route? Compete directly with UA on product. While it’s great that JFK and YYZ always have the best product, it should be time for the west coast to get that love.

[ewh1]

PR beyond just list price, is losing out on SFO because earning points is just easier with United when booking on their ecosystem and using products like co-branded credit cards could earn you 3-9x the points on everyday shopping and even more when you book directly with the airline, or earn on other trips outside of the Philippines. That goes a long way when your planning your next visit home. If you have status, theres even more bonus points you can earn simply by booking with United or United.com’s partner airlines.

Those savings can go towards upgrading to premium economy, business class or other products that contribute to ancillary revenue and can help contribute to overall yields. Even by knowing you can earn more miles on a higher booking class can help sway people to pay more if they can see what it will earn them. There’s just too much value sitting on the floor.

What can you get with Mabuhay Miles if you live abroad right now?  It’s not a useful currency in its current form. North American travelers are savvy and from what we know, encompasses a big chunk of PAL ticket purchases overall, so it’s no wonder UA is eating PAL alive in North America. North American travelers, including Fil-Am/Can’s are a lot savvier and are willing to spend if they can see the value of their dollar.

Also, this is Star Alliance territory so AC and UA basically help each other out. I know that because I see it when I check flight options online. More people are empowered to book directly as well so travel agents are also becoming less important to GenXers and younger.

PAL joining Oneworld will help their bottom line however, AA is still not the strongest in terms of product with both Delta and United offering better products and services overall with more people migrating to those programs. AA is reversing some of their past cost cutting decisions and winning customers back similarly to PAL, so I think it won’t be as easy for PAL to just win customers back, simply because United has the home field advantage in the United States has better perceived value compared to AA..

On the flip side, AA has better redemption value which goes a long way when you want to fly on JAL, Cathay, Qatar, etc. there’s always a chance it could make a big impact as it improves the prospects of redeeming with those premium airlines, or PAL itself with its bigger network options to/from North America and Philippines/Asia, helped by AS and AA’s regional connectivity and hubs.

I’m excited to see the affect of more competitive competition and whether it translates to better products.

[seven13]

PR is set to introduce additional frequencies to YVR, YYZ and JFK. By 4Q, YVR goes 11x, YYZ to 4x and JFK to 4x and 5x during peak week.

Additional YYZ and JFK will be flown with A359 initially before switching to the A35K. SFO will see the A35K by August. Very much needed equipment swap to go against UA.

Seems like PR is starting to build its transit clientele. No published timings yet but it said it would make SEAsia to NorthAm transit seamlessly.

[filipinoavgeek]

seven13 wrote

PR is set to introduce additional frequencies to YVR, YYZ and JFK. By 4Q, YVR goes 11x, YYZ to 4x and JFK to 4x and 5x during peak week.

Additional YYZ and JFK will be flown with A359 initially before switching to the A35K. SFO will see the A35K by August. Very much needed equipment swap to go against UA.

Seems like PR is starting to build its transit clientele. No published timings yet but it said it would make SEAsia to NorthAm transit seamlessly.

SFO is still served with the 777 right? Where will they be redeployed to then?

[Arianespace]

No redeployment. Its the start of retrofit season. So they are going to be offline soon.

[seven13]

Aeroroutes already published the additional NorthAm schedule.

YVR is getting a morning departure 3x a week. Initially operated by A359 then switching to B777 during peak holiday week
PR136 1105MNL -> 0800YVR
PR137 1235YVR -> 1800+1MNL

Seems like JFK 4th weekly service will stay after 28JAN27, 5x service a week during peak holiday season

[JNC03]

How many 77Ws will be retrofitted?

[Solblanc]

Have they also decided what they’re going to retrofit the 77Ws into? Will it be more economy for the Mideast, or will it be more for long-haul?

Personally, if they’ll just be reconfigured for the Mideast, they can just densify the four newer 77Ws, keep the J cabin but reduce the seats, and replace the J seats past door 2 with economy. That should give over 400 seats, like etihad. And the aura lite seats they removed could be placed in their older 77Ws which would also be densified. So that would be 28/380-ish for a little over 400 seats, and no need to invest in a new product. Perfect for the Mideast, and the J is competitive with the old emirates and Qatar 777 J.

If they’re gonna be for long-haul, though, with premium econ, would that mean that they’re going to add more routes and frequencies to the US?

[seven13]

if you're retrofitting the B777, it should definitely be the older one first. I’m guessing since for the next 6 years, PR will definitely need the B777 as back up plane to NAm if and when an A35K goes to maintenance. PR would always have the bi-class as back-up for mideast ops plus PR is adding capacity on NorthAm with LAX going 18 a week, JFK and YYZ to 4 and YVR to 10. It would be modest to have 30-32 bcl seats after retrofit. 42 would be too much for RUH. They might be able to fill it up on DOH especially QR is actively selling PR's DOH route.

[Gustavo J Oppenheimer]

PAL participated in the Hawaiian Airlines event (as a future member) showcasing the special Aloha oneworld livery on their A330



https://www.linkedin.com/posts/ole-orv%C3%A9r-3506382_hawaii-aloha-ugcPost-7478466461892673536-Dhw5/?utm_source=social_share_send&utm_medium=android_app&rcm=ACoAAFJkh_YBCbYBMXU13nLtVz3RocTFYON1hZU&utm_campaign=copy_link

[Solblanc]

The older 77Ws are really old though. They might not be useful for retrofitting. After all, they did get rid of other 77Ws of that generation only to replace them with Garuda frames. Speaking of which, will they densify the Garuda frames as well?

If PAL exercises the 3 A35K options, and can get good slots, they might not need any more northam frames.

The bi-class A330s should really be phased out. I hope they’re first on the reconfig sched.

[frequentflier]

In terms of age, PRs 77Ws are still relatively young. If you compare them to Cathay, their oldest is almost 19 years old. PAL just needs to make sure that they refurbish the seats and make sure that they’re properly maintained. 7781 was returned to lessor during the pandemic, and 7776 was returned to GECAS cause it’s always AOG. I believe that’s the only reason they got the ex-Garuda.

[Arembo]

I notice RP-C9915 just flew in from Xiamen when it was previously under maintenance for some time. I am curious if it was retrofitted.

[Gustavo J Oppenheimer]

I thought the retrofitting starts next year for the 777s. Im surprised they fasttracked the program

[Gustavo J Oppenheimer]

Ethiopian will upgrade to A359 this month in NAIA

https://www.facebook.com/story.php?story_fbid=122170496024824400&id=61574732027531

[filipinoavgeek]

Gustavo J Oppenheimer wrote

Ethiopian will upgrade to A350K this month in NAIA

https://www.facebook.com/story.php?story_fbid=122170496024824400&id=61574732027531

Actually it says A350-900 and not A35K. Any chance of an actual nonstop in the future or even a triangular route, rather than the Hong Kong stop?

[seven13]

Arembo wrote

I notice RP-C9915 just flew in from Xiamen when it was previously under maintenance for some time. I am curious if it was retrofitted.

That should be a routine maintenance.
Retrofit is done here in PH. If I’m not mistaken, the seats are locally produced in Batangas.

[Gustavo J Oppenheimer]

Edited, thanks

[Arembo]

Thank you.