Philippine Airlines (PAL) President, Jaime J Bautista, reportedly recently stated the carrier is in urgent need of a capital infusion or it will go bankrupt (Manila Bulletin, 19-Jan-2010). PAL Employees Association (PALEA) has now written to the Philippine Government asking whether it would be possible for the government to take over operations of the carrier if it is indeed on the verge of failing. However, the Department of Labor and Employment (DoLE) has stated the chances of a government take over are “very remote”, as it does not have the “capacity to operate an airline”.
PAL in urgent need of a capital infusion
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Philippine Airlines Part 3: more USA growth planned, as A350s arrive and partnerships are pursued
Philippine Airlines (PAL) is seeking to improve its position in the North American market by boosting capacity and partnering with a US airline. PAL has been able to increase its presence in the US since the FAA upgraded the Philippines to a Category 1 safety rating in 2014, enabling PAL to increase capacity, launch new routes and pursue codeshares with US airlines.
PAL launched services from Cebu to Los Angeles in Mar-2016 and in the coming weeks is planning to add capacity on Manila-Los Angeles – one of its largest and most profitable international routes – using a newly delivered 777-300ER. PAL may also add capacity to San Francisco in 2017 and is planning to use its new A350-900 fleet to launch nonstop flights to New York, and potentially Chicago, in 2018.
PAL also has begun searching for a US partner to help it feed an expanded US operation. Securing a US partner is key to supporting further growth and further boosting its share of the Philippines-US market as competition intensifies.
Philippine Airlines Part 2: more expansion to Australia and China as A321neos arrive in 2017
Philippine Airlines (PAL) is planning more international growth over the next year or two with a focus on Australia, China, the US and potentially Europe. Nonstops for Brisbane and more capacity for Sydney are in the pipeline for Australia, while in the Chinese market PAL is looking to launch Chengdu.
In Europe PAL is considering adding a second European destination in 2018, with Frankfurt and Rome under consideration. PAL has already added capacity to Europe this year by upgrading its London Heathrow service to daily.
This is the second in a series of analysis reports on the Philippines market. The first report focused on PAL’s Middle East operation, which could be reduced in 2017 amid intensifying competition and weakening demand.