Airlines in the Philippines

[romantic_guy08]

Arianespace wrote

You must remember that the A330 mono distribution to ME is a SAN MIGUEL plan. With the possible exit of SMC all bets should now be now off the table. Its a whole new ball game. But I am expecting them to add two more routes there.

Hope this ownership issue gets resolved soon, and there can be clearer direction after that...

Anyways, totally annoyed with the arm chair CEO in the other forum right now.. ugh...

[Evodesire]

SHOULD the SMC group exit, do you think the LT group will go for a dual branding once again with PAL going as a full legacy carrier and PAL Express will have a separate branding as an LCC?

It is also rumored that if the LT group takes over, Bong Tan will be Lance Gokongwei's counterpart in PAL. Well rumors are just rumors. I hope this ownership crisis gets resolved so that there would be a clear direction already.

[Eurest]

I still wonder how the LT group can come up with 1.172B in cash, and I doubt SMC will take any less.
SMC on the other hand can easily come up with 520M in cash, especially after posting a H1 income of 18.4B

I too, don't believe PR's future bodes well under the LT group.
Gone will be the cost cutting measures like cheaper narrowbody C-checks at Shandong or the widebodies at Xiamen favoring the co-owned LTP.
And I guess catering in Manila will go back to MacroAsia/SATS from MIASCOR/Gate Gourmet.
Well atleast the Pursers will be happy being able to bring more than 2 bottles of Champagne now.
Oh, and the return of COLT45 over PalePilsen

[Solblanc]

romantic_guy08 wrote

Anyways, totally annoyed with the arm chair CEO in the other forum right now.. ugh...

IKR!?!?!?!
I'm seriously pissed off with the repetitive mantra. It's like nothing else would make him happier in life.

The discussion in SSC has gone to the dogs.


On another note, another reason why the 744 is making the trip is that the 744 is PR metal, and the all-y a330s are 2P metal, and there's still some paperwork to be done coz 2P is still kinda banned from EU airspace, and I guess PAL never bothered to apply for 2P's exemption coz they thought they'd never have to fly to Europe.

[Arianespace]

Evodesire wrote

SHOULD the SMC group exit, do you think the LT group will go for a dual branding once again with PAL going as a full legacy carrier and PAL Express will have a separate branding as an LCC?

It is also rumored that if the LT group takes over, Bong Tan will be Lance Gokongwei's counterpart in PAL. Well rumors are just rumors. I hope this ownership crisis gets resolved so that there would be a clear direction already.

That has been the mantra of LT through JBB. SMC though has other ideas in mind, and that often misinterpreted idea is implemented by some legacy carriers in the EU. RSA was just following a trend. And so does its IFE ideas.

Eurest wrote

I still wonder how the LT group can come up with 1.172B in cash, and I doubt SMC will take any less.
SMC on the other hand can easily come up with 520M in cash, especially after posting a H1 income of 18.4B

The papers are reporting that figures based on LT offer but cost is actually more than that to the tune of $1.3B. I did mentioned earlier the terms of payment, but the LT offer has not been accepted by RSA, both on cost and terms, and right now they are drafting a counter offer if they will not raise the stake. What has come out are the guarantees but that is not what is in SMC's mind. So the ball is actually in LT's court. I'm not even sure if LT can pay the $1.1B in a months time.

Solblanc wrote

IKR!?!?!?!
I'm seriously pissed off with the repetitive mantra. It's like nothing else would make him happier in life.

The discussion in SSC has gone to the dogs.


On another note, another reason why the 744 is making the trip is that the 744 is PR metal, and the all-y a330s are 2P metal, and there's still some paperwork to be done coz 2P is still kinda banned from EU airspace, and I guess PAL never bothered to apply for 2P's exemption coz they thought they'd never have to fly to Europe.

Well, you do have a nice post there. Although I doubt it very well if those folks in dreamland understood you very well.

About the 333, they do are owned by PR. The non-flight has nothing to do with the ban. Remember, 77W flew to Crete, an EU state, when the Philippines and PR in particular was still blacklisted over their airspace.

[Solblanc]

Arianespace wrote

Well, you do have a nice post there. Although I doubt it very well if those folks in dreamland understood you very well.

About the 333, they do are owned by PR. The non-flight has nothing to do with the ban. Remember, 77W flew to Crete, an EU state, when the Philippines and PR in particular was still blacklisted over their airspace.

Thanks, but it still irks me to no end what they did to you.

Anyway, even though they're owned by PR, they seem to be operating under the 2P AOC, and for the EU, that isn't good enough. They required a lot of extra paperwork when the 77W flew to Crete for the "exemption", and from what I'm told, they're requiring the same extra paperwork for the A333, specifically citing the presence of 2P in the blacklist. How odd.

[Eurest]

I just read your piece rebutting the so called analysis of another over at the other forum, well done sir. Very well said, very well put.

I must say I find it particularly odd that people are criticizing PR when they took on the ME3 and are actually winning.
How to compete with a 400seat B77W on the ME3 in their home turf? Why a 400 seat A333 at half the capital expense, and much better fuel burn. Just brilliant!
The fact that CX had to consolidate their middle east routes just goes to show that what PR is doing works as they are beginning to influence the actions of other carriers.
In fact, the word is that the 180 regional A333s that China is ordering will also be 3-3-3 and configured similarly to PR's 376 seat version.
And if this wireless IFE endeavour works, then PR will once again be a pioneer in the commercial aviation industry.

[fd20]

My goodness, Mr. Armchair CEO at SSC has the nerve to be Mr. Armchair CEO but does not even know what a SWOT analysis is, or what USP means. Goodness gracious.

Anyway, I'm really happy to be part of this forum. Lots of really good insights here.

[swahi]

I also share the opinion that PAL is better off with RSA than LT. During the time of LT and JBB, I have personally met JBB to voice out certain concerns of cargo, and partly with passengers.  I was endorsed to one of his SVPs, but handling passengers.  For all the meetings that followed, they couldn't come up with a concrete action.  PAL's office of the president under JBB was too nice, in my opinion.  Some will say JBB couldn't really make drastic actions as he did not have a free reign, but he was too nice, too conservative, to the happiness of their competing airlines.  At that time, I was telling them their cargo was being eaten up by Cebu Pacific and Korean Airlines.  Cebu Pacific is so quick to decide, and when PAL reacts (after a long period of thinking), Cebu Pacific reacts again.  PAL then takes a while (again).  Any businessman will be too frustrated with such slow decision making.

To bring back LT and bring back JBB will bring back that same conservative attitude.  That won't work in this present day environment.

[Evodesire]

^^^ I agree with you. PAL lacked aggressiveness during JJB's time. Cebu Pacific had the ball. Now, we do see PAL's aggressiveness. They ordered more aircraft, they keep adding destinations and so on. Marketing has improved as well, and I do see better ads than before. They just lack innovative marketing campaigns though, which is where Cebu Pacific has the edge against them. Plus, their social media needs improvement big time.

But all in all, at least PAL is making money now. And we do see the effects of a hybrid model. Has WISE been launched already?

@Solblanc: Love your post in the other forum!

[Arianespace]

Solblanc wrote

Anyway, even though they're owned by PR, they seem to be operating under the 2P AOC, and for the EU, that isn't good enough. They required a lot of extra paperwork when the 77W flew to Crete for the "exemption", and from what I'm told, they're requiring the same extra paperwork for the A333, specifically citing the presence of 2P in the blacklist. How odd.

I've heard about this paperwork thing in the past but that is just normal like filing necessary permits for charters, only that it is made under exceptional circumstances that AOC really doesn't matter at all. This is actually a non-revenue government flight. So the ban doesn't apply. It is treated as if the plane belongs to the government. And as courtesy they are exempt from paying navigational and airport charges other than ground services. All fees and permits associated with charters are waived. It is like flying as PR1. And they have special immigration facilities too, like not going to extensive regular immigration inspections done at airports.

swahi wrote

Some will say JBB couldn't really make drastic actions as he did not have a free reign, but he was too nice, too conservative, to the happiness of their competing airlines.  At that time, I was telling them their cargo was being eaten up by Cebu Pacific and Korean Airlines.  Cebu Pacific is so quick to decide, and when PAL reacts (after a long period of thinking), Cebu Pacific reacts again.  PAL then takes a while (again).  Any businessman will be too frustrated with such slow decision making.

Kind of what he is. A good soldier. Like what I said earlier, the position itself is nothing but a stamping pad. No concrete decision from the boss.

The difference between the current President RSA is the decision itself, from uniform, to new fleet, to lets go to the middle east, to forget LTP and Macroasia as Eurest added that kinda ignite the LT group to buy them out. Insiders estimate savings to be close to a million dollars. I could have added that SMC were stripping corporate officers of benefits (and there is this thorny issue of new fleet commission), to the plan relocation of corporate headquarters away from their bank because the lease was so expensive.

This could be the final draw that led them to say enough. The insider said the savings could have gone to the groups coffers but went back to the airline instead. Strangely this and the plan was neither confirmed nor denied. So basically its all tsismis. All we can see is that the airline finally registered a modest profit. But of course.

[Arianespace]

By the way, the first 744 departure will be at 2AM and the second 744 at 4AM Malta time. Arrival in Manila will be around 8pm and 10pm respectively tomorrow. Strangely, the third flight just departed now. PR9006 so the remaining 250 passengers will ride the A330.

Good thing the new ones appear in FR24. Here it is
http://www.flightradar24.com/PAL9006/413f7f8

The number 6 code refers to government department, i.e. DFA

[Arianespace]

Some corrections,

There are only two planes that was hired, 1 B747 and 1 A330 because the number of OFW who managed to board the boat numbers only about 810 instead of the expected 1100 that manifested days ago.

And don't worry about the flight codes, it doesn't matter anymore. There is only one recorded history where PR1, PR2 and PR3 were flown. I never heard about flown PR4 or PR5, although there is such a code for government flights.

[seven13]

I got 2 friends who's flying on PR5006. And of course, airboy007 whose flying the first flight. I'm quite envious since I wanted to fly those kinds of flights! Of course, a privilege and honour of bringing home our kababayans.

[Arianespace]

Our plane arrived on time. The 744 will leave now as PR9009. Perhaps there is no more doubt that this plane at mono configuration can actually fly to Italy and back even via the Arabian route.

[Arianespace]

Some interesting facts on PAL's state of health:

http://edge.pse.com.ph/openDiscViewer.do?edge_no=c3b0d0a9e4f64f301db82e377ee70f3b#sthash.OIcIAaL1.dpbs

Operating revenue first half from 18.5b to 48.9b up by 164.3%

Operating expenses first half from 19.4 to 47.9b up 31%

Funny, this is the same figure the company denied a month ago

We regret that we do not have official basis to either confirm or deny the above-quoted statement.

http://edge.pse.com.ph/openDiscViewer.do?edge_no=423af06d231d44f31db82e377ee70f3b#sthash.koxOMpTh.dpbs

This fact however is already set in stone more or less. We do have a thing called "forward booking" where you can approximate a clear picture. If RSA saw it last year then his one hell of a genius. He can't be heading SMC if his basher think his good for nothing CEO. Well, the figures speak for themselves.

PAL is projected to end 2014 with a net profit of $30 million or P1.34 billion.

[seven13]

With this report coming out online and on the spreads, prices of stocks should go up come Monday. The value of SMC's share now costs more. LTG's offer to buy back the 49% isn't enough and they should pool in more $$$ if they really want to get the 49% back.

[Arianespace]

And this plane is on its way back to Manila leaving a bit late at 5:40 Malta time, arriving midnight the following day.
http://www.flightradar24.com/PAL9007/41584c2

This is actually one of the historical flights in Malta, i.e, longest flight to Manila with A330 and B744 equipments.

[Eurest]

It seems I was wrong, I thought they'd make a fuel stop at AUH for the A333 when they seemed to have stopped at Al Maktoum instead

[romantic_guy08]

Just wondering, would anyone know if PR intends to fly the B77Ws in between flights to the U.S./Canada? Seems that after they arrive from LAX/SFO/YVR, these 77Ws just sit in LTP waiting for the evening departure back to North America. Seems under utilized to me, or are they saving on the cycles of the aircraft?

Maybe they can deploy these to HKG, SIN, BKK or even NRT in between N/A flights...