|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?
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
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