Eroplano pa more! Cash-strapped PAL has 13 aircraft coming in next 4 years as Lucio Tan implores Airbus to defer deliveries
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Eroplano pa more! Cash-strapped PAL has 13 aircraft coming in next 4 years as Lucio Tan implores Airbus to defer deliveries

Bilyonaryo Lucio Tan’s airplane glut is expected to get worse before it gets better with Philippine Airlines expected to receive 13 Airbus 321-231 NEO over the next four years.

According to its parent, PAL Holdings, Airbus will deliver one aircraft in December 2021 and the remaining 12 to be delivered between 2022 and 2025.

Mission impossible? Lucio Tan needs P24.25B to save PAL from going belly up as airline stopped lease, debt payments since April 2020

“Due to the COVID-19 contagion which has had a catastrophic impact on the world economy, most specially in the airline industry, PAL and Airbus are currently in discussion for further deferral of the deliveries,” said PAL Holdings.

Aviation analytics firm Cirium, citing multiple sources, claimed last May that PAL has informed its 19 lessors (with 49 aircraft committed to PAL) that it was seeking to file Chapter 11 bankruptcy protection in the United States.

PAL losses soar to P73B in 2020 with creditors banging on Lucio Tan’s doors to collect on P120B current loans

PAL’s aircraft lease obligations are worth a staggering P150 billion or nearly five times its loans.

PAL currently has a fleet of 97 aircraft with 81 under lease, mostly Airbus 321-231 (24 units), 330-300 (15 units), and Boeing 777-300ER (10 units). It owns nine Airbus 320-200s, three Bombardier DHC 8-400s, and 4 Bombardier DHC 8-300s.

Ch-aviation estimated that about half of the flag carrier’s total fleet is currently deployed on 64 scheduled routes, 42 of which have three or fewer frequencies per week.

PAL said it was in the midst of restructuring its fleet aimed at reducing capacity to match the projected reduced market demand in the short term; rationalize its route network by discontinuing some ultra-long-haul routes; adjusting frequencies of its overall route network compared to pre-pandemic levels; densify selected aircraft to accommodate the expected increase in passenger demand; and enhance flight schedules to provide convenience and better connections, to attract more passengers.

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