Airlines In The Philippines IV

[JNC03]

Philippine Airlines has raised $300 million in its debut international bond sale after attracting nearly $1.5 billion in investor orders.

The five-year senior unsecured bonds carry a 7.75 percent fixed coupon, according to an insider.

Philippine Airlines launched the bond offering after holding investor meetings led by president Richard Nuttall and chief operating officer Carlos Luis L. Fernandez. The deal was led by Deutsche Bank and BNP Paribas, a previous filing showed.

The proceeds will support fleet modernization and other long-term requirements as the 85-year-old airline continues to build on its postpandemic recovery.


https://insiderph.com/philippine-airlines-raises-300-m-in-landmark-bond-sale-demand-nears-5-times

[Gustavo J Oppenheimer]

Are they getting the 300 Million, the 1.5 billion or both?

[Arianespace]

PAL only wanted $300 million for the first salvo. But the creditor offer was $1.5 billion. That showed confidence on PAL ability to pay.

[seven13]

Arianespace wrote

PAL only wanted $300 million for the first salvo. But the creditor offer was $1.5 billion. That showed confidence on PAL ability to pay.

I wonder if all of these (Oneworld + BB rating + fleet orders/renewal)are products of Nuttal’s work or the results of efforts from previous Presidents. Makes me think if the family allowed Richard to do his work without much interference.

[seven13]

Solblanc wrote

seven13 wrote

Can’t the 77W make the return leg fully loaded? I think it can unless they have been offloading cargo to max out pax and their luggage

370 pax is doable. Anything more than that, it gets difficult. That’s why the Garuda frames with 390 pax go to YVR.

If you notice, PAL’s layout is space-inefficient. There’s a lot of extra pitch in J and in Y. With 42 flat J seats, other airlines can easily fit 400 pax.

The 787-10 can totally fly to the US… if you restrict its seats. But if you’re gonna restrict its capacity, it defeats the point of its advantages.

Anyway, with an additional 10 A350s, additional long-haul capacity won’t be needed. I can understand that the 787-10 can be useful. But in a wider network sense, if you make it premium-heavy, it can go to Australia and Honolulu and maybe the west coast seasonally. If you want the Middle East, you will want to pack it with pax, and it could also do well short-haul instead of abusing the cycles of the bigger planes.

Just thinking aloud on which aircraft would be more versatile. The 789 offers so many new expansion opportunities and also opens up long-haul from CEB. With our airport situation, it’s not exactly easy to create connecting banks in MNL, but they can do it from CEB and even offer a nicer transit experience that oneworld flyers would love.

I thought sending the ex-GA 777 to YVR had to do with its customer, significantly a lot of Y than J compared to LAX and SFO.. I didn't know it had to do with aircraft capability.

I’m guessing it’s the B789 for longer thin routes and maybe a cebu-lax comeback, then creating a sub fleet of A359 at higher capacity than the current one for mideast and aussie than can be substituted to either direction without problem.

Between the B78XIGW and A359 (just used Chatgpt for it), A359 seems to be more capable at 330 seats without leaving any cargo and can operate US west coast all year round.

[filipinoavgeek]

seven13 wrote

Arianespace wrote

PAL only wanted $300 million for the first salvo. But the creditor offer was $1.5 billion. That showed confidence on PAL ability to pay.

I wonder if all of these (Oneworld + BB rating + fleet orders/renewal)are products of Nuttal’s work or the results of efforts from previous Presidents. Makes me think if the family allowed Richard to do his work without much interference.

Some of the Oneworld-adjacent deals were actually pre-Nuttal, so it's possible that at least the consideration to join OW came before him. In fact, it wouldn't surprise me if the plan to join OW was a big factor in hiring him in the first place, given his links to Cathay and SriLankan.

[Arianespace]

Nah. Its all Nuttall work.

[seven13]

Arianespace wrote

Nah. Its all Nuttall work.

I’m surprised that they let Nuttall do all the work. What did Nuttal bring that made the family back off from those decision making and just let Nuttall stir the company?

I think let’s also give credit to GSM for the Chapter 11 during covid. It has its cons but PR would not be where it is right now if it wasn’t for him.

I just wish PR would be run like 5J, leaving all the expertise to those knowledgeable about it.

filipinoavgeek wrote

seven13 wrote

Arianespace wrote

PAL only wanted $300 million for the first salvo. But the creditor offer was $1.5 billion. That showed confidence on PAL ability to pay.

I wonder if all of these (Oneworld + BB rating + fleet orders/renewal)are products of Nuttal’s work or the results of efforts from previous Presidents. Makes me think if the family allowed Richard to do his work without much interference.

Some of the Oneworld-adjacent deals were actually pre-Nuttal, so it's possible that at least the consideration to join OW came before him. In fact, it wouldn't surprise me if the plan to join OW was a big factor in hiring him in the first place, given his links to Cathay and SriLankan.

Joining OW was already a murmur during JJB’s time but none materialized until just recently. Maybe the family was focused on the cost that will be incurred rather than the longterm benefit it will have to PR.

@filipinoavgeek, BTW, just want to share (saw a reply from a.net regarding pilot pool). I personally do not think that pilots transitioning between A and B really matter to PR (training cost). From what I understand, I could be wrong though, ascension starts from SO (A330/A340 or B777), then after meeting the requirements, they either start being an FO for the A320/321 or the A330 family, then promoted to B777 FO, then A320 or A330/A350 captain and finally B777 captain. I think that’s how the pilot promotion inside PR is.

[Arianespace]

Chapter 11 is GSM alright. The 10ab 35k is however BOD. Not Stan. I don't know how they will reconcile it now with OW standards. I mean, the pilot was right all along.

[seven13]

Arianespace wrote

Chapter 11 is GSM alright. The 10ab 35k is however BOD. Not Stan. I don't know how they will reconcile it now with OW standards. I mean, the pilot was right all along.

Because Stan was just a figure the company needs to face the media. I still believe he wasn’t given the chance to make key decision making.

[Solblanc]

The average passenger doesn’t seem to be complaining about 10ab for some reason… it’s bizarre. The put the product straight on ULH flights, and the feedback was neutral. It’s like airbus was right and passengers would accept 10ab.

If PAL is still ordering A359s, I wonder if they’ll do 10ab on those frames, too. It’ll have 350-370 seats. It’ll be seen as an improvement for Mideast ops. And it can do west coast… I’m not advocating for this, but I’m afraid with the neutral feedback on 10ab, more airlines are gonna go down this parh

[Arianespace]

Still waiting for another FSC to do this. Its been quite a while.

[seven13]

Solblanc wrote

The average passenger doesn’t seem to be complaining about 10ab for some reason… it’s bizarre. The put the product straight on ULH flights, and the feedback was neutral. It’s like airbus was right and passengers would accept 10ab.

If PAL is still ordering A359s, I wonder if they’ll do 10ab on those frames, too. It’ll have 350-370 seats. It’ll be seen as an improvement for Mideast ops. And it can do west coast… I’m not advocating for this, but I’m afraid with the neutral feedback on 10ab, more airlines are gonna go down this parh

This is true. Haven’t seen or read any negative feedback on the 10ab 35K. Well, PR gave a generous pitch, it might have balanced out the narrower seat width.

Base from experience, I was able to get on EY’s B787 and B777 in economy. Window, middle and aisle. On one occasion, I was given the forward seats that offers a little bit more legroom, it was honestly bearable on a 6hrs journey to AUH; felt less cramped compared to their regular seat, which I sat in the middle on a 9hrs journey to MNL and an aisle seat on an 11hrs journey to KIX.

I personally think the pitch matters more versus the width. I’ll try to get on the A35K sometime this year.

[Evodesire]

Solblanc wrote

The average passenger doesn’t seem to be complaining about 10ab for some reason… it’s bizarre. The put the product straight on ULH flights, and the feedback was neutral. It’s like airbus was right and passengers would accept 10ab.

If PAL is still ordering A359s, I wonder if they’ll do 10ab on those frames, too. It’ll have 350-370 seats. It’ll be seen as an improvement for Mideast ops. And it can do west coast… I’m not advocating for this, but I’m afraid with the neutral feedback on 10ab, more airlines are gonna go down this parh

Aren't they targeting the 300-350 seat zone for the A359? As far as OW is concerned, I heard there are even cabin standards PAL has to follow. The current A359 in their fleet is comfortable enough. But I think the newer A359s have the wider cabin width already, similar to that of the A35K.

Most likely, those 787s will be for ME, Australia, and regionals. With flexibility to fly US if the A350s need an extra lift for US flights.

[Solblanc]

Iberia is able to put in 352 pax in their A350-900 NPS frames at 9-abreast.

At 10 abreast... it'll be amazing CASM. The temptation to fill it to the gills will for sure be there.

These A350s are supposed to replace the 77Ws... and they'll be able to match the seat count.

Again, not advocating for this. Would love for PAL to go for less dense layouts. No idea what their bean counters will recommend in the end though.

[Evodesire]

I have a feeling that it won't be as dense as the A35K. Prolly following the 295 - 315 seats. I think dense Y seating might not sit well for OW?

[JNC03]

RP-C9932 ongoing test flight as of today

[airline_builder]

on OW member seat topic:

No, the OneWorld airline alliance cannot dictate the seating configurations, policies, or specific seat assignments of its individual member airlines.

While OneWorld sets overarching guidelines for loyalty perks across its 15 full members (such as Alaska Airlines, American Airlines, British Airways, and Cathay Pacific), the operational management of aircraft—including cabin layout, seat spacing, and seat selection fees—is strictly controlled by the operating airline.Key Details on Seating and AlliancesIndependent Operations: Member airlines are completely independent companies.

They own their aircraft, design their own cabin classes, and determine their own policies regarding paid seat selection and advance reservations.Elite Status Benefits: OneWorld standardizes elite status perks across the alliance (Ruby, Sapphire, and Emerald tiers).

For example, Sapphire and Emerald members are generally granted complimentary access to preferred or pre-reserved seats when flying on other OneWorld airlines, but this benefit is subject to availability and the policies of the specific airline operating the flight.Codeshare Complications:

When booking a ticket through one airline but flying on a partner's aircraft (a codeshare flight), technical integration between the two carriers can sometimes limit your ability to select a seat in advance on the airline's own website. You often have to call the operating carrier directly to secure your seat.

CGPT

[filipinoavgeek]

https://x.com/wallstengine/status/2075523292602179608

I'm not sure how reliable source this is, but apparently the order will be for 15 787-10s and 9 A35Ks (not sure if this includes the options or is a totally new order).

Sounds like growth then, as well as to fully replace the A330s and 777s respectively?

[JNC03]

Here is the article

https://www.reuters.com/business/aerospace-defense/philippine-air-order-15-boeing-787-10-nine-airbus-a350-1000-2026-07-10/