Philippine Airlines expected to reduce fleet size

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  • AMcWhirter
    Participant

    I did add to page 16 of the thread below:

    The fall of the dominoes

    I would agree with ‘cwoodward’ that Philippine Airlines (PAL) is too important to fail if and when it enters Chapter 11.

    Like Thai Airways for Thailand PAL is vital to the nation’s economy considering the size of its tourist market.

    However I am posting this because Bloomberg [paywall may apply] reports that a number of its long-haul aircraft would be removed from the fleet if it were to enter Chapter 11.

    https://www.bloomberg.com/news/articles/2021-05-14/philippine-air-mulling-chapter-11-in-talks-to-reduce-its-fleet

    These would be at least two A350s and four B777s which are PAL’s flagship long-haul aircraft.

    Why is this significant ?

    Because with fewer long-haul aircraft PAL would have to reduce the size of its long-haul network.


    cwoodward
    Participant

    I did add to page 16 of the thread below:

    The fall of the dominoes

    I would agree with ‘cwoodward’ that Philippine Airlines (PAL) is too important to fail if and when it enters Chapter 11.

    Like Thai Airways for Thailand PAL is vital to the nation’s economy considering the size of its tourist market.

    However I am posting this because Bloomberg [paywall may apply] reports that a number of its long-haul aircraft would be removed from the fleet if it were to enter Chapter 11.

    https://www.bloomberg.com/news/articles/2021-05-14/philippine-air-mulling-chapter-11-in-talks-to-reduce-its-fleet

    These would be at least two A350s and four B777s which are PAL’s flagship long-haul aircraft.

    Why is this significant ?

    Because with fewer long-haul aircraft PAL would have to reduce the size of its long-haul network.

    I believe not by a lot Alex if at all as some of the aircraft were earmarked for future planned expansion most of which was already announced. The aircraft in question are currently parked

    If the mentioned return of aircraft goes ahead this would leave the airline with 4 X A350s and 6 X B777 aircraft plus 15 youngish long haul A330s and 20 + A321s

    I see little significance in the handing back of a few currently unused leased aircraft as most of the worlds larger airlines have been doing exactly the same thing

    The fleet is a young one of currently some 70 aircraft and more than enough appropriate capacity to service the current route network for at least the next couple of years.
    I see the airline just announced a new route to Israel.


    AMcWhirter
    Participant

    Today’s news from Germany is that Lufthansa is set to acquire four A350s from PAL (Philippine Airlines).

    The news comes via Aerotelegraph.com [DE]

    Lufthansa bekommt vier Airbus A350 von Philippine Airlines

    These A350s are intended to strengthen the Lufthansa fleet.

    Last September CEO Carsten Spohr hinted that his airline was considering acquiring more A350s.


    cwoodward
    Participant

    The A350 acquisition is not from Philippine Airlines.
    All of the aircraft mentioned are being leased by Lufthansa from leasers Avolon and Goshawk I understand.

    They are however aircraft formally leased by Philippine Airlines.


    AMcWhirter
    Participant

    I wanted to update this thread as PAL has now filed for US Chapter 11.

    PAL aims to reduce fleet size by up to 25 per cent.

    Philippine Airlines files for Chapter 11


    cwoodward
    Participant

    It seems that PAL was not expecting to return to pre pandemic operational levels until mid 2024 given the very bad and expected long term lock down situation in the Philippines that is the cause of the financial stress.
    After returning the remaining 18 effected aircraft the airline will have a fleet of 70 relatively young aircraft.
    Given the deep pockets of the ownership, the governments interest in keeping it running and the part ownership by ANA the restructuring and future of the airline looks to me fairly solid.

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