Philippine Airlines Expands Fleet to Meet Soaring Demand
With the increasing demand for air travel within and beyond the Philippines, Philippine Airlines is gearing up for a significant expansion of its fleet. The Manila-based carrier is in the process of finalizing plans to purchase approximately 75 new aircraft. This strategic move is aimed at accommodating the expected growth in passenger volume, driven by the construction of new airports and a boom in tourism. During an interview on July 30, 2024, with ABS-CBN news agency, Stanley Ng, the President and Chief Operating Officer, emphasized the necessity of planning ahead to keep pace with infrastructural developments.
According to Ng, the initial stages of planning for this expansion began in 2023 but faced delays. However, with the resumption of planning, the focus is not only on expanding the fleet but also on aligning with the upcoming capacities of newly constructed airports. “We have to be ready. We can’t order planes when the airport is already online. It’s thinking ahead also,” Ng explained.
The company currently holds orders for 13 A321neos and nine A350-1000s from Airbus, with the A321s scheduled for delivery by mid-2026 and the A350s by late 2025. Additionally, the airline has options for three more widebody aircraft. Negotiations are ongoing with various financial institutions to secure approximately $500 million in loans to fund these acquisitions, potentially increasing their order backlog to 25 airframes.
Competition and Strategic Moves in the Philippine Aviation Market
Philippine Airlines is not the only local carrier expanding its fleet. Cebu Pacific, a key competitor, has recently announced an order for up to 152 new aircraft from Airbus, marking the largest such order in the nation’s aviation history. This order has been influenced by similar factors: a surge in air traffic and the development of new airport facilities across the Philippines.
Furthermore, Philippine Airlines is closely monitoring the privatization process of Manila’s Ninoy Aquino International Airport (MNL), set to commence in September 2024. Ng is optimistic about the innovation and improvements that the privatization will bring, especially in time for the peak travel season at the end of the year. “Innovation will start coming in by September [2024]. Hopefully, we can already see some innovations by the end of the year because especially it’s Christmas peak season and that’s the best time for travelers to enjoy those innovations that will be implemented at the airport already,” Ng remarked.