After PAL exited receivership in 2007 and after a brief management takeover by the San Miguel Group from 2012-2014 PAL has fully recovered and re-established itself as one of Asia’s premier carriers.
PAL will be spending from $500million to $700 million to buy 7 new planes as well as spare parts in 2016 according to PAL President and Chief Operating Officer Jaime Bautista. He also said that some planes will be leased while others will be purchased.
Five new A321 aircraft has already been delivered this year.
They are also planning to buy new ones to replace airbus A340s because they consume more fuel and requires higher maintenance.
Bautista also added that they still have to decide whether A350 or Boeing 787 would be a better replacement for A340s at the end of the year.
In 1997, the country’s flag carrier was severely affected by Asian financial crisis. The company was forced to downsize its international operations by completely cutting flights to Europe and the Middle East. Cutting domestic flights except routes operated from Manila. Thousands of employees were laid off. But that was years ago.
Now, PAL wants to expand its services. Buying new planes to replace the old ones is one way of doing it.
Passenger revenues reached P81.75 billion in 2014 with 9 million passengers.
According to its parent company PAL Holdings Inc., its 2014 earnings was P129.74 million and net income was at 5.86 billion on the first half of the year.
PAL, with approximately 5000 employees has Lucio Tan as its Chairman and CEO.