Flying-Tiger
Topic Author
Posts: 3924
Joined: Mon Aug 23, 1999 5:35 am

PAL: A320 Follow-on Order

Thu Aug 02, 2007 9:25 pm

Quote:
MANILA, Aug 2 (Reuters) - Philippine Airlines (PAL) said on Thursday it would exercise an option to buy five more Airbus 320s as it expands operations but also cautioned that this fiscal year's net profit would slow from last year's peak.

PAL.XML" target=_blank>http://investing.reuters.co.uk/news/...1696_RTRIDST_0_PHILIPPINES-PAL.XML

Not unexpected IMO.
Flown: A319/320/321,A332/3,A380,AT4,AT7,B732/3/4/5/7/8,B742/4,B762/763,B772,CR2,CR7,ER4,E70,E75,F50/70,M11,L15,S20
 
KL808
Posts: 1534
Joined: Thu May 20, 1999 3:49 am

RE: PAL: A320 Follow-on Order

Thu Aug 02, 2007 10:17 pm

Fantastic News.

Hope they get more A319's.

I also think that with all the expansion PR is doing that it will post lower profits.

Drew
AMS-LAX-MNL
 
vheca
Posts: 154
Joined: Wed May 30, 2007 9:20 pm

RE: PAL: A320 Follow-on Order

Thu Aug 02, 2007 10:28 pm

Quoting KL808 (Reply 1):
Fantastic News.

Hope they get more A319's.

I also think that with all the expansion PR is doing that it will post lower profits.

Drew

Sorry to be a little vague on this, but, what is the current status of PR? One minute they owe $$ to everyone, next thing they are buying planes left and right, then they are struggling again.

Is it possible that PR will be a profitable business in the future? Please pardon my vagueness of this post, I have yet to thoroughly investigate this topic at this time and was looking for some insider information.

[Edited 2007-08-02 15:29:56]

[Edited 2007-08-02 15:31:18]
PAX on-312,320,722,732,733,73H,73W,739,742,743,74C,752,753,762,789,AB4,CR7,D1C,D28,DHT,F27,L11
 
KL808
Posts: 1534
Joined: Thu May 20, 1999 3:49 am

RE: PAL: A320 Follow-on Order

Thu Aug 02, 2007 10:56 pm

Quoting VHECA (Reply 2):
Sorry to be a little vague on this, but, what is the current status of PR? One minute they owe $$ to everyone, next thing they are buying planes left and right, then they are struggling again.

Is it possible that PR will be a profitable business in the future? Please pardon my vagueness of this post, I have yet to thoroughly investigate this topic at this time and was looking for some insider information.

As of now the carrier is very profitable. It has posted profits for the last couple of years now. Though under receivership, and owing more than 1.5 Billion USD, it needs these new planes to compete.
With new planes it will be able to compete better and protect the status quo before other carriers snatch its market.

PR can't sleep, it needs to be in the offensive.

New A32X series planes will help bolster its domestic and short range Asian routes, as well as open new ones.
New B773ER's will bolster its long range fleet to increase frequency and open new routes.
2 class service will be standardized in the fleet.

With this modernization we can hope that PR will have a great future.

Drew
AMS-LAX-MNL
 
LurveBus
Posts: 218
Joined: Wed Mar 21, 2007 8:21 pm

RE: PAL: A320 Follow-on Order

Fri Aug 03, 2007 1:11 pm

Quoting VHECA (Reply 2):
Sorry to be a little vague on this, but, what is the current status of PR? One minute they owe $$ to everyone, next thing they are buying planes left and right, then they are struggling again.

Is it possible that PR will be a profitable business in the future?

Like KL808 said, PR has been profitable for a while now. Ever since PR went into bankruptcy in the middle of the Asian financial crisis, PAL resurrected into a lean and mean operation. From a fleet of 60 with a whole lot of A340s flying to the Middle East and Europe, PAL downsized to a fleet to 30+. From their huge orders during the 90s, they only kept 4 744s ( instead of taking delivery of the other 4, PR just leased an extra 744 and converted the orders to 77W), 4 A340s, 8 A330s, and they also halted their A320 expansion programme, choosing instead to keep the 4 A320s already delivered while sticking to the cheap leases of a handful of 733s and 734s. Flights to Europe were cut, despite the fact that PR had just recently acquired LHR slots. The cost-cutting never ended, and after surviving bankruptcy, 9/11, and SARS, PR finally got into the black through very careful management. Today, the 1.5 billion USD debt has been reduced to around 950 million USD, and according to news reports, PR is getting out of receivership by the end of the year. Not bad, eh?

PR may not have the finest hardware or the finest service, but at least they're acting like a business now. While the old PAL had 747s with Skybeds in the upper deck flying all sorts of milk runs, the new PAL is pretty efficient. Their utilization rates are kinda insane. At least today, if your flight were to be delayed or cancelled, it would be due to overutilization. Thirty years ago, the cancellation would've been due to the First Lady chartering a 742 for a shopping trip to Paris.

I think the best testament to PR's current profitability would be their flights to LAS. Of all its destinations, LAS ranks as one of the weirdest. But the fact that they're making a profit flying to LAS instead of losing money trying to maintain a route to LHR or JFK just to say that they fly there. Another example is how PR stopped flying to KUL. In the day and age of ASEAN integration, it would seem off for PR not to fly to one of the largest ASEAN capitals, but PR is better off sending its A320s to China, instead of competing with MAS and low-cost carriers on that route.

Wow, that was a long post. My internet died this past week, so I suppose I'm making up for it  Smile

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