Philippine Airlines looks to slow fleet expansion by subleasing A330s and reducing A321 commitments

Philippine Airlines' new executive and ownership team is preparing a new business plan which should see the flag carrier slow down international expansion and become a more rational competitor. The Lucio Tan Group and former president Jaime Bautista are back in charge, ending a two and a half year stint with San Miguel and its president, Ramon Ang, in control.

PAL's biggest short-term challenge is excess aircraft, the result of an overambitious order placed with Airbus in 2012 after San Miguel took control. PAL has several surplus newly delivered A330s which are now being under-utilised and could soon face a surplus of narrowbody aircraft as it is committed to taking 10 additional A321s in 2015.

If PAL does not succeed at finding new homes for excess A330s and is not able to defer or sublease future A320s it could be forced to pursue aggressive capacity expansion in both the domestic and international markets. Such expansion would make it difficult for PAL to be profitable and would also impact its competitors, particularly Cebu Pacific Air.