Summary
- Philippine Airlines is set to increase profitability with more flights to North America by 2025 using the Airbus A350-1000.
- Timely delivery of the A350-1000 is crucial for PAL’s success, as Airbus promises no delays in the orders.
- The airline aims to capitalize on high demand for US flights, with a maiden voyage to Seattle planned for October 2nd.
Philippine Airlines (PAL) plans to increase its profitability and operations network in the post-COVID era. A significant part of this plan is to increase the frequency of flights to the West by the end of 2025, mainly to North America.
To do so, the airline requires aircraft capable of ultra-long-range aircraft, such as the Airbus A350-1000. Since the airline’s profitability hinges on the timely delivery of the aircraft, Airbus has assured the Manila-based carrier that it will receive the planes as planned, without delays, reports PhilStar Global.
On-time delivery
Airlines worldwide rely on the timely delivery of their purchased aircraft to remain profitable. The money spent on the equipment has to be recouped by putting it to work. As mentioned, much of Philippine Airlines’ 2025 and beyond plan hinges on the timely delivery of the A350-1000.
Photo: Airbus
Carlos Luis Fernandez, PAL Executive Vice President and General Counsel, said that the airline expects the planes to start being delivered by the third quarter of next year. Airbus has agreed with this timeline, stating that the deliveries will not be delayed and the first of the nine aircraft ordered by the airline will be delivered as expected.
In addition, the European manufacturer said that the airline will receive the first of the 13 A321neos ordered as scheduled in 2026. Fernandez says that PAL is bullish on its outlook and will utilize the aircraft to strengthen the airline after the COVID-19 pandemic. In a statement to local news, he said:
“We have the A350s that will start coming in by the third quarter to fourth quarter of next year. We have been told that that is still on track. In 2026, we would have the first of the 13 A321neos coming in. So far, it is still on track, we have been assured of that.”
The assurance comes after Boeing announced that the 787 deliveries will be delayed in the short term due to a shortage of critical components.
Gearing up for the future
According to Fernandez, the airline has sold nearly all its seats for its maiden voyage to Washington’s Seattle-Tacoma International Airport (SEA) on October 2nd. It underscores the high demand for flights to the US among the local population, which is what the airline hopes to capitalize on using the A350-1000s.
Photo: Airbus
On October 2nd, the Tan family-owned airline will become the first to connect the Philippines and the American Northwest with a direct flight. The addition of the Seattle flight strengthens the airline’s hold on the North American market. Currently, it operates almost half the flights to the US and Canada, although it is losing ground due to more foreign airlines opening connecting flights.
The airline does not plan to expand its route network this year and has again postponed its plans to land in Sapporo, Japan. Fernandez said that the reason is the lack of workforce at the airport and its current inability to offer ground handling services to PAL flights. In a statement to local news, he said:
“The problem with Sapporo is the ground handling there. We had wanted to mount that since last year, but there is no ground-handling company that can accommodate us. We have been pushing that back. Hopefully, at some point, the manpower issues in Japan get resolved.”
PAL is also making improvements in other areas. It is spending nearly $450 million for capital expenditures this year, investing most of it in in-flight upgrades for its Western expansion, focusing on Europe.
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