PAL set to complete rationalization plan

MANILA, Philippines - National flag carrier Philippine Airlines Inc. (PAL) is set to complete the rationalization plan wherein it would focus on international routes while low cost carrier unit PAL Express would service domestic destinations.

Jaime Bautista, president and chief operating officer of PAL, said PAL would take over the Manila – Dubai route now being serviced by PAL Express next month.

 “We (PAL) are planning to take over the Dubai route from PAL Express. We are looking at April,” Bautista said.

Except for Cebu and Davao, he pointed out that PAL Express would service all domestic routes while PAL would fly to international destinations.

 “We want PAL Express to concentrate on the domestic routes,” he added.

According to him, PAL Express operates a total of 24 aircraft of the fleet of 74 Airbus and Boeing aircraft of the PAL Group.

The PAL Group serves a total of 67 international and domestic routes. It has 37 international routes including the recently launched Manila-New York route and soon to be launched Jinjiang, China and Port Moresby in Papua New Guinea.

It also served 30 domestic destinations.

PAL Express, formerly Air Philippines Corp. (AirPhil Express), was revived when diversified conglomerate San Miguel Corp. (SMC) bought a 49-percent stake in PAL in April 2012.

SMC through San Miguel Equity Investments Inc. (SMEII) bought a 49- percent stake in Trustmark Holdings Corp. in April 2012 for a total consideration of $500 million. It embarked on an ambitious massive fleet renewal program involving the acquisition of 100 brand new aircraft with orders of 65 brandnew Airbus aircraft worth close to $10 billion.

The Tan Group has successfully negotiated with Airbus for a four-year delay in the complete delivery of close of 40 aircraft.

PAL is supposed to take the delivery of the remaining 38 Airbus A321 aircraft until 2020 but has been deferred to 2024.