PAL poised to soar to profitability

2:39 am | Wednesday, August 29th, 2012

Ramon S. Ang, president and COO of Philippine Airlines talks to reporters following the announcement in a news conference Tuesday Aug. 28, 2012 in Manila the signing of a US$7-billion deal to buy 54 Airbus planes. Ang said the company might post a modest profit for its current fiscal year that ends next March. AP PHOTO/BULLIT MARQUEZ

Flag carrier Philippine Airlines (PAL) is poised to soar to greater heights starting next year as it takes delivery of new planes—more than doubling the size of its current fleet.

Even without the new planes, PAL president Ramon S. Ang said the company might post a modest profit for its current fiscal year that ends next March.

“The company is already registering a profit,” Ang said at a press conference on Tuesday. He said the airline’s better performance was a result of “discipline,” leading to lower maintenance costs.

PAL’s parent firm PAL Holdings posted a P489.2-million profit in the April to June period of 2012, the first quarter of the company’s fiscal year. This was an improvement from the P475.1-million loss posted the year before.

PAL also implemented a cost-cutting program last October that involved the outsourcing of 2,600 jobs to third-party providers. Ang declined to comment on whether the outsourcing program, which is still being questioned in court, contributed to the company’s return to profitability.

At the press conference, the airline disclosed details for its expansion program. The company signed a deal with European plane manufacturer Airbus for as many as 54 new planes in the first phase of a multiyear acquisition spree. The deal is worth $7 billion, based on published list prices for the planes.

Ang, who is also president of San Miguel Corp., said the company was still in negotiations to buy 46 more aircraft to bring its total plane purchases to 100.

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Tags: Air Transport , Airline , Business , Earnings , Earnings Forecast , Philippine Airlines (PAL) , plane acquisitions

http://profile.yahoo.com/BM4EFNZJNX6665HVBSTLWU5JUI Emil

See website of AA,Continental-United,Air Canada. You view the cabin and select seats
http://pulse.yahoo.com/_Q3QGG5QHBLRMZTIYWUFURY6J2E Night

ASIDE FROM THE NEW PLANES… CAN YOU PLEASE GET A NEW ONLINE BOOKING SYSTEM, ONLINE CHECKING, NEW PORTALS, WEBSITES ETC…..

FOR A MODERN AIRLINE TO NOT HAVE ONLINE CHECKING IS STUPID

Fz20

also pls no added, hidden, addtl charges/surcharges/penalties, arm-twisting, nickle and diming tactics. just look at all those chinese/korean airlines-they dont do these dastardly things.isa pa, intl-local transfers/baggage transfers.

ThudOthwacker

There’s reason why PAL bought Airbus instead of 777. EU banned our planes in entering Europe. Soon EU will lift its order against at least with PAL. What will World Trade Organisation do on this blackmail tactics?
Cruxofthematter

Congratulations PAL. By the way, where will all these planes be based? Centennial 2? Don’t ever think of NAIA (Terminal 1).
So, anent to this, the government (and together with PAL), should work together to create excellent air terminal facilities and that will mean a lot of investment – not just in Manila alone, but also in the other domestic airports.
Remember, airplanes do not fly all the time, they have to land and passengers need decent toilets in terminals, cozy chairs, and spacious lounges, not dirty, noisy and disorderly terminals.
dequis

sana ang sumakay sa pal ay maging kasingsarap uminom ng beer.
http://profile.yahoo.com/DTXTBDKUOHBYZNF2FQGVWXLXRU Miguel

PAL please add a flight to middle east. Over 1 million OFW working in the middle east
http://pulse.yahoo.com/_KF2TCBJ2AUC7VIPR3TACWUGITE Rednaxela VD

PAL employees are brats and overpayed. About time RSA comes in and disciplines your group
GiantSlayer

Instead of refleeting with Airbus, PAL should do so with Boeing aircraft. I remember when PAL made the bad decision of sticking with Douglas & instead of acquiring the Boeing 747 got the DC-10. They lost a lot & later had to get the 747. Same with situation now. Instead of the A380, why not get the 747-800, instead of the A330s get the 787 Dreamliner and for short hauls, instead of the A320/A321, get the latest 737s. A lot of Filipinos work for Boeing & there’s a hidden benefit to the country. Boeing’s safety record is way over that of Airbus & the A380 is reported to be suffering from wing cracks. Lastly, our main ally is the U.S., so this is a case of scratching each other’s back.

http://twitter.com/alfs_alfs Pons Corpuz

Mas magaling ka pa sa Airline company ah.

Matt LEEE

taga china yan si jeremy
maorag44

Usually, these decisions are made by the airline executives who thinks in terms of financial matters unlike us aviation enthusiasts who thinks of advantages of one type to another. I will bet the Airbus offer was more financially beneficial, but as I recall about the DC-10 fiasco, they lost more eventually. On a lesser scale, this again happened with the decision to buy the A340 instead of more 747 Jumbos.

http://twitter.com/yngjjd Jeremy Young

they got the A330s because they will be delivered by next year compared to the 787s which will be delivered by 2016. the A330s are a short-term look and will eventually be moved by PR to 2P. They will still get the 747-8i (and eventually, 787s or even the 777-9x) because they will still have to replace the aging 747-400s in their fleet. We will just have to wait for them to work their magic as the Boeing deal is integral as a bargaining chip for us to regain Cat 1 status again. Poker face.

the Airbus narrowbody deal is a good business decision as PAL already has almost 20 of the A320 family in its fleet, not to mention, 2P also has quite a fleet of A320s too and is looking to expand them as well. That means that it would be more cost-effective to go for the A320 family as PAL has the synergies for those already prepared for the MRO of such aircraft. Furthermore, the Airbus deal will also help us get out of the EU ban. This is the biggest deal from any Filipino airline with Airbus, that should give us, at the very least, a little push and leverage to get out of the EU ban as well.

http://pulse.yahoo.com/_Y3MKVDLWAXR27CDNQ3PVKLOK4Y tomtom

You sound like employee of PAL aka Chinese airlines. Why don’t you tell them the truth that you supporting China, you know Airbus assembly factory is in Mainland, China. So, you got the common sense of that, trying to help China to buy a bullet against Filipinio. How about to start a drive to stop using PAL, used another carrier, especially us from West Coast.
Guest

consumed too much US semen?
KpTUL

Huwag mong pakinggan si tomtom. Mukhang praneng yan. I like your analysis. It seems logical.
http://pulse.yahoo.com/_Y3MKVDLWAXR27CDNQ3PVKLOK4Y tomtom

I hope they can perfect there landing gear. yan ang problema ng airbus dito sa West Coast. Hindi lumalabas ang landing gear. Many Fil-Am knows it. Sana may experience ka na between Airbus and Boeing. Lalu na ang bibilhin ng PH pagka-alam ko sa China gagawin.. So, goodluck na lang sa inyo.

http://pulse.yahoo.com/_Y3MKVDLWAXR27CDNQ3PVKLOK4Y tomtom

good respond, thank you.
http://profile.yahoo.com/BM4EFNZJNX6665HVBSTLWU5JUI Emil

Dont worry, PAL will order additional B777 in the next round of ordering

marivon

Wait for the next CBA and PAL will surely tell it’s employees that the company is loosing money.
I was there for twenty years and this is the pattern I observed. But I do hope that this in sik is different from the previous in sik; I still have a lot of friends employed by PAL.
http://pulse.yahoo.com/_GWP3O5MIWBLNYMNQ75Q2NSO3AI mack

PAL should buy planes from USA to help US make stronger economy. We rely on USA on our problems in West Philippine Sea we should help them to make them stronger to be more dependable ally. Filipinos rely on US in time of crisis with another State, we should in return be grateful to them. If US became economically weak, we could not expect a strong support from US. The more we could not expect some help from countries making Airbus…

http://profile.yahoo.com/KZH4F63CRHKPDZSVIPVIIJAEHI vf l

What a sickening reply from a colonial US vassal!
Obviously the Airbus was a better plane!
But a grovelling snivelling US stooge like you would always buy American.
Because America is your god!
What a fool of a country! (and people with your mentality).

PAL poised to soar to profitability

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