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Philippine Airlines long haul strategy Part 2: new nonstop routes to New York JFK and Toronto

Premium Analysis

Philippine Airlines (PAL) plans to begin a new phase of trans-Pacific expansion in Aug-2018 with the launch of nonstop flights from Manila to New York following delivery of its first two A350s. Manila-New York is expected to be the first of at least four trans-Pacific routes PAL adds by the end of 2019 as part of an ambitious strategy to improve its position in the highly competitive North American market.

PAL has opted for a 295 seat three class configuration for its A350s, providing lie flat business and premium economy products in the North American market for the first time. The airline has six A350s on order, which will be used to launch at least three new US routes.

PAL is also planning to expand in Canada by upgrading Toronto to nonstop using the 777-300ER. PAL will continue operating the 777 in its three biggest trans-Pacific routes - Manila to Los Angeles, San Francisco and Vancouver - and to Toronto while the smaller A350 will be used in thinner markets.

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