PAL to save $160M with new Boeing 777 to US

MANILA, Philippines - Philippine Airlines Inc., jointly owned by taipan Lucio Tan and diversified conglomerate San Miguel Corp. (SMC), expects to save at least $160 million a year as a result of decision of the US Federal Aviation Administration (FAA) to upgrade the country’s safety ratings.

PAL president and chief operating officer Ramon S. Ang said the airline could realize savings in the amount of $100 million in fuel costs and $60 million in maintenance costs by using the more efficient Boeing 777 for flights to the US.

 â€œWe will be able to use our new aircraft from now on, going to Los Angeles, San Francisco or West Coast and this will mean a $100-million a year savings on fuel and another $60 million a year in savings on maintenance costs,” Ang stressed.

After the upgrade of the country’s aviation safety rating back to Category 1 from Category 2 by the US-FAA, PAL is set to immediately deploy a fleet of six newly-acquired Boeing 777-300ER aircraft worth $1.2 billion for its long-haul flights to the US.

Ang said passengers can now enjoy non-stop flights to Los Angeles and San Francisco aboard new aircraft equipped with the most modern cabin and state-of the-art amenities, including lie-flat beds in business class.

“This latest development allows us to deploy our modern and fuel-efficient Boeing 777-300ER fleet to the US , and enables us to explore new destination opportunities in one of the  Philippines ’ largest passenger markets,” he added.

Currently, PAL operates a total of 26 weekly flights to the US, with frequencies to Los Angeles, San Francisco, Honolulu and Guam.

For its flights to Honolulu and Guam, Ang said PAL would continue to utilize new wide body Airbus A330-300s and single-aisle A320-200s.

He pointed out that the upgrade would boost tourism and trade and open up new and exciting opportunities for the flag carrier.

With the upgrade, the Philippines now rejoins the ranks the most important aviation nations in the world, made up of select countries that meet the US’ strict standards of aviation safety.

Ang said the airline is initially looking at flying to New York and Chicago within the year. It used to fly to New York until 1997 after it was forced to stop due to the Asian financial crisis.

PAL operates the widest route network among all other Philippine carriers, with 29 domestic and 35 international destinations.  New destinations in the Philippines (Basco, Batanes); Asia (Guangzhou, China); Australia (Darwin, Brisbane); the Middle East (Abu Dubai, Dubai, Riyadh, Dammam) and Europe (London).