For Fleet Expansion
20 February 2020
20 February 2020
Philippine Airlines Holdings has announced that stockholders of Philippine Airlines has approved the increase of the flag carrier’s authorised capital stock from P13 billion up to P30 billion (US$600 million).
According to PAL Holdings, the increase capital stock is needed to grow the company and finance acquisition of new short and long haul aircraft.
PAL President and Chief Operating Officer Gilbert Santa Maria said the airline “needs capital” to grow its business.
The airline said the increase was “part of the flag carrier’s transformation toward sustainable profitability and a higher level of competitiveness.”
According to PAL Holdings, the increase capital stock is needed to grow the company and finance acquisition of new short and long haul aircraft.
PAL President and Chief Operating Officer Gilbert Santa Maria said the airline “needs capital” to grow its business.
The airline said the increase was “part of the flag carrier’s transformation toward sustainable profitability and a higher level of competitiveness.”
Wonder if they have order more long haul aircraft
ReplyDeleteThere are rumors that PAL will order either A350-1000s or 777Xs, possibly even both.
DeletePAL has 6 options A350 options that went along with the initial order of 6 A359's. They have not yet indicated how they will exercise it.
DeleteI think they will not exercise 6 options for now. PAL posted -$208M (net loss) due to combined effects: Taal 2020 eruption and COVID-19 outbreak. Business restructuring plan has been made last February 28: they're laying off 300 employees. So as reconfiguration.
DeleteAny chance they'll reconfigure their remaining A330s to match with the others?
ReplyDeleteI think it's less likely to reconfigure their 8 remaining 363-seater A330-300 as these are specifically for domestic and Mideast high capacity routes. Just for now.
DeleteI hate those sardine can Ramon Ang A330's. The San Miguel-RSA era for PAL is the worst in the airline's history!
Delete😢
DeleteWhat about the original 777. Those planes need a makeover.
ReplyDeleteNot possible. PAL posts $208M due to combined effects: Taal and COVID-19 outbreak. They need to trim themselves first before reconfiguring the fleet.
DeleteI mean $208M loss
DeleteDon't be confused by smokescreen. The airline has to do some PR stunt to convey its message across. JJB influence cleansing. If you take closer look, most entrenched workers are one way or another associated with JJB. More like lieutenants if you like. El Capitan's lieutenants are also let go. Guy has to be surrounded with yes man. Purge a.k.a. retrenchment was already planned in 3Q 2019.
DeletePAL COO Gilbert Santa Maria said long-term debt was "unsustainable," lease obligations amounted to "billions" of dollars. Well of course. You are leasing planes and financing some.
You can view our earlier report here
https://philippineairspace.blogspot.com/2019/11/decoding-pal-losses.html
Rule of thumb, retrenchment is reduction of workforce. Not replacement. Another rule of thumb, events in Q1 2020 will always be reflected on next year account. Not on present year. Never attribute to malice that which can be adequately explained by stupidity. Hanlon’s razor works as a simple rule of thumb. It invites us to reflect before jumping into conclusions.