PAL readies $450-M war chest for expansion this year

An aircraft of Philippines Airlines (PAL), the Southeast Asian nation’s flag carrier, taxiing at a runway while other aircraft park besides the hangar of the Ninoy Aquino International Airport (NAIA) in Manila | PHOTO: REUTERS/Romeo Ranoco

MANILA — Philippine Airlines (PAL) is spending $450 million this year for its aircraft order and other capital expenditures as it ramps up flight network, which includes the launch of the country’s first ever Manila-Seattle route by October.

Anna Bengzon, chief financial officer of the flag carrier, said in a press briefing on Tuesday that about 80 percent of the earmarked budget would go to the refurbishment of its A321ceo units, as well as maintenance and upgrades of other aircraft.

A portion of the capital outlays will also pay for new aircraft order, she added.

READ: Flying high: PAL doubled 2023 net income to P16B

PAL is expecting delivery of 13 Airbus 321-231 neo (new engine option) aircraft between 2026 and 2029. It also set to receive nine Airbus A350-1000 jets between 2025 and 2027.

The airline currently operates a 78-jet fleet.

Along with this, the Lucio Tan-led airline announced the launch of its nonstop flights between Manila and Seattle by Oct. 2. This route will be offered thrice weekly.

READ: BIZ BUZZ: PAL ready for takeoff to Seattle

“Our Manila-Seattle-Manila flights give us a valuable opportunity to promote our beautiful island country as a flourishing tourist and business destination for American travelers,” PAL president and chief operating officer Stanley Ng said.

Seattle will be PAL’s sixth route to the United States, after Los Angeles, San Francisco, New York, Honolulu and Guam. The new route can also serve as gateway to Washington and Oregon.

PAL will deploy Boeing 777-300ER, a 370-passenger capacity aircraft, for the Manila-Seattle flight. INQ