Philippine Airlines president Ramon S Ang said the carrier is targeting a break-even result by the end of 2012, with the carrier to reassign aircraft and realign its network as part of cost-reduction efforts. Mr Ang, as reported by bworldonline.com and rappler.com, said around 90% of the carrier's services will be realigned by Oct-2012, adding, “Right now, there are many big aircraft used for short destinations or small aircraft used for long destinations, that’s why it wasn’t efficient. [There should be] a right aircraft for the right destination”. He however noted there would be no flight cancellations as part of the realignment, which is expected to result in USD300 million of annual fuel savings. "We will see the effect of that after three months… so by the end of December, we will break even,” Mr Ang said.
Philippine Airlines expects USD300m in savings from fleet redevelopment, breakeven by end of 2012
You may also be interested in the following articles...
Australia needs to negotiate expanded bilateral agreements with Malaysia and the Philippines
This is the second of a series of articles on Australia’s need to urgently negotiate expanded bilateral agreements. The first part looked at bilateral constraints in some key North Asian markets, in particular mainland China and Hong Kong, as well as with the United Arab Emirates. This part looks at constraints in Australia currently facing carriers from Southeast Asia, particularly Malaysia and the Philippines.
Australia is an important and generally profitable market for airlines from Malaysia and the Philippines, as well as other Southeast Asian countries that have fewer or no limitations on expansion. Australia needs to negotiate new air service agreements with Malaysia and the Philippines or risk having their airlines focus expansion on other destinations.
Philippines regional market presents opportunities but also challenges for start-ups such as SkyJet
This is the fifth and final instalment in a series of analysis articles on the Philippines market. The first part analysed the strong position of Philippine market leader Cebu Pacific. The second part looked at the tie-up between LCCs Zest Air and AirAsia Philippines, which along with Tiger affiliate SEAir compete with Cebu Pacific in the fast-growing budget end of the market. The third part looked at the outlook for Philippine Airlines (PAL) in the domestic market, including the recent decision by the group to abandon the low-cost model at sister carrier AirPhil/PAL Express. The fourth part looked at PAL’s position in the international market. This part examines the opportunities in the dynamic Philippine regional market as a result of consolidation and rationalisation in the domestic market.
Regional carriers have traditionally played an important role in the Philippines as several domestic airports, including some of the country’s most popular tourism destinations such as Boracay, cannot be accessed with Airbus or Boeing aircraft. Even some of the country’s low-cost carriers operate turboprops, abandoning the normal single aircraft type mantra of the LCC model, recognising the unique needs of the Philippine market.