Philippines AirAsia To Add 19 A320s, 20 A321s

 27 June 2023

Philippine-based low cost carrier AirAsia expects to increase its fleet by nineteen A320s beginning July this year and return all remaining parked planes consisting of seven frames to service by August, according to Capital A President Tony Fernandes. 

PAA has current fleet of 15 A320 aircraft.

“We have already signed up 19 aircraft, and are negotiating for more,” Fernandes told the press at the Paris Air Show media briefing. 

“AirAsia also expects to have all 204 of its aircraft inventory reactivated by the end of August this year, and achieve 100% of pre-pandemic capacity in the coming months.” Fernandes said.

Fernandes says that he expects the first of the additional 19 aircraft to arrive in July from its fleet depot in Malaysia.

Fernandes says 362 A321-200NX are on order with Airbus, with deliveries scheduled from 2024, while long-haul AirAsia X operations would get an additional fifteen 15 widebodies (the three AirAsia X airlines operate A330-300s).

Out of the 362 A22N frames, Philippines will get “up to twenty” A321-200NY(XLR)s. He added that PAA will get 3-4 A330s out of the 15 orders, and would also begin flying into the Philippines soon, although he did not specify a timeline for this. 

Capital A’s cargo and logistics business, Teleport, is also expected to take the first of three A321Fs in July for operations also in the Philippines.

The group’s airline interests include Malaysia-based AirAsia, AirAsia X, Philippines AirAsia, Indonesia AirAsia, Indonesia AirAsia X, Thai AirAsia, and Thai AirAsia X. 

Fernandes said Capital A will also launch AirAsia Cambodia this year. 

Romero Sell AirAsia Philippines to Fernandes

5 June 2023

Philippine low cost carrier Philippines AirAsia (AirAsia) was formally sold to its parent company AirAsia Aviation Ltd. of Malaysia, controlled by business magnate Tony Fernandes for an undisclosed amount.

Philippines AirAsia (Z2), formerly known as Zest Air prior to merger with AirAsia Philippines (AAP), was controlled by F&S Holdings Inc., of Michael Romero, holding 60% share of the company, divided between Antonio Cojuanco (20%), Romero (20%) and Marianne Hontiveros (20%), while 40% was held by Capital A, formerly AirAsia Group, controlled by Malaysian magnate Tony Fernandes.

The 60% share was sold to Tony Fernandes controlled company AirAsia Com Travel (AA Com Travel Phils. Inc.), a subsidiary of AirAsia Aviation Ltd., holding company of Capital A, which owns the 40% equity share of PAA, making Tony Fernandes the sole owner of AirAsia in the Philippines.

The sale was approved by the Philippine Competition Commission (PCC) this month after the Philippine government lifted restriction to foreign ownership of airlines under the new Public Service Act (RA 11659) approved by President Rodrigo Duterte in March 21, 2022. The law took effect beginning April 1, 2023.

AirAsia operates flight to and from Manila to Puerto Princesa, Bacolod, Iloilo, Tacloban, Kalibo, Caticlan, Cebu, Tagbilaran, Cagayan de Oro, Davao, and Zamboanga. It also operates hub in Clark and Cebu using a fleet of 20 Airbus A320 aircraft as of June 1, 2023 for its domestic and international operations which includes flights to Bangkok, Singapore, Taipei, Osaka, Seoul, Hong Kong, Tokyo and Bali.

Tony Fernandes said he intends to grow the fleet to its Philippine branch to 30 Airbus A320 aircraft at the end of this year. He also proposes to introduce two (2) widebody A330 aircraft for its domestic and international operations in Cebu and Davao from its hub in Manila, as well as to international flights to Bangkok, Seoul, and Hong Kong for introduction next year.     

PAL Booked US$135 Million Net in 1st Quarter

 12 May 2023

Flag carrier Philippine Airlines (PAL) on Friday disclosed that it booked an operating income of $ 135.2 million or around P 7.4 billion in the first quarter of 2023.

PAL said this was a substantial improvement from the $33.8 million P1.7 billion logged by PAL in the first quarter of 2022.

The airline also said that its total comprehensive income hit $ 108.2 million or P5.9 billion during the period.

"The positive financial performance reflects the continuing strength of the recovery of air travel," PAL said. 

According to the airline, gross revenues hit $ 776.9 million or around P42.6 billion in the first quarter of 2023, which represented a 66.5 percent improvement from the same period in 2022, driven by a 156.2 percent increase in the number of passengers carried on PAL’s global network, the airline said. 

PAL Signs MOU for 9 A35Ks

Toulouse, 10 May 2023 – Philippine Airlines (PAL) has signed a Memorandum of Understanding (MoU) with Airbus in a deal worth over US$3 billion for the purchase of nine A350-1000s for delivery beginning on the 4th quarter (October, December) of 2025 until 2027. 

Under the Philippine carrier’s Ultra Long Haul Fleet project, the A350-1000 will be operated on non-stop services from Manila to North America, including to the East Coast of the US and Canada, replacing the Boeing 777-300ERs. (See our story here on why A35K is the next big thing for PAL)

The new aircraft will join two A350-900s already in service at the airline and currently flying to destinations in North America, Asia and Australia. PAL was forced to subleased four of its A350-900 ordered from Airbus to German Carrier Lufthansa for six (6) years, a result of its Chapter 11 bankruptcy protection which it exited in December 2021.

As with the A350-900, the PAL A350-1000s will be configured in a premium layout with separate Business Class, Premium Economy and Economy Class cabins. They will be powered by Rolls Royce Trent XWB-97.

The MOU also covers purchase rights on three (3) additional A350-1000s by 2028 for future expansion to new long-haul destinations.  

PAL did not disclosed the deal with Airbus, but listings on Axon Aviation, a London-based aircraft sales and leasing company, showed each brand new A350-1000 jets together with its pair of Rolls Royce engines and interior amenities is valued at $355.7 million, bringing the airline’s total investment to over US$3 billion. Airbus stop publishing lists price in 2019.

Captain Stanley K. Ng, President and Chief Operating Officer of Philippine Airlines, said that the range of the A350-1000 would enable the airline to fly non-stop transpacific and transpolar routes in both directions all year. 

These will include some of the longest commercial flights in the world, such as those linking the Philippines with New York and Toronto. 

"With an expanded A350 fleet, PAL will have the ability to once again provide a direct link from the Philippines to Europe," Ng said.

“The A350-1000 combines greater range capability with the higher capacity we need to serve future demand. It’s the perfect aircraft to enable PAL to meet its expansion plans in a sustainable way, while offering passengers the highest levels of onboard comfort. We are committed to offering our passengers the best possible travel experience, and these state-of-the-art aircraft will enable us to do just that as we carry out our mission to connect the world, and grow trade and tourism.” He adds.

Christian Scherer, Airbus Chief Commercial Officer, said: “Flying passengers farther and in greater comfort, the A350 brings a step-change in fuel efficiency and an immediate significant contribution to reduced emissions. These are the attributes that have made the A350 the choice of leading airlines worldwide. We look forward to working closely with our long-standing customer Philippine Airlines as it moves forward with its long haul fleet modernisation programme.”

The A350 is the world’s most modern and efficient widebody aircraft and has set new standards for intercontinental travel. It offers the longest range capability of any commercial airliner in production today and is capable of flying 8,700 nautical miles or 16,100 kilometres non-stop.

At the end of April 2023, the A350 Family had won 928 firm orders from 54 customers worldwide, making it one of the most successful wide-body aircraft ever. Some 530 aircraft are currently in the fleets of 40 airlines, flying primarily on long haul routes.

Philippine Airlines operates various Airbus types on its full service network. In addition to the A350 on long-haul intercontinental routes, PAL flies A330-300s on services to the Middle East, Australia and various points in Asia. The Philippine flag carrier also operates a fleet of A320 and A321 single aisle aircraft on its extensive domestic and regional network out of hubs in Manila and Cebu.

The MOU signed by Philippine Airlines and Airbus is not yet a final order, and aircraft type and quantity may change according to future negotiations as both fine-tune the contractual details which can take weeks or months to complete.

PAL is expected to operate a fleet of 15 Airbus A350s by 2028, with six -900s and nine -1000, exclusive of purchase rights to be acquired at a later date. 

 

Philippine Airspace To Be Close on May 17

2 May 2023

Department of Transportation (DOTr) announced Tuesday that the country’s airspace will be shut down for six hours on May 17 for maintenance schedule of its navigational equipment.

DOTr said the shutdown to Philippine Airspace will allow it to replace an uninterruptible power supply (UPS) unit of the Air Traffic Management (ATM) system installed at the Civil Aviation Authority of the Philippines complex in Pasay City.

The closure of the Philippine airspace will begin at 12 midnight and to end at 6 a.m.

Ninoy Aquino International Airport and operating airlines were notified in advance of the scheduled disruptions, and would operate early or delayed flights for this maintenance schedule.

NAIA was recently advised by the CAAP that the replacement of the UPS may take shorter than expected.

“These are all proactive efforts to, of course, make sure that the CNS/ATM (Communication, Navigation and Surveillance/Air Traffic Management) is reliable as an offshoot of what happened this year,”MIAA Senior Assistant General Manager Bryan Co said in a news conference this afternoon.

Co said MIAA, CAAP, and airport authorities across the country as well as various operating airlines will also be meeting Wednesday morning to discuss plans for the shutdown.

The MIAA is asking airlines to step up in communicating the shutdown to passengers who will be affected as their will be travel delays affecting their plans.

DOTr To Bid 10 Regional Airports

 21 April 2023

Transport Secretary Jaime J. Bautista bared government plans to privatize operations and maintenance of 10 regional airports across the country.

Airports prepared for privatization are Bohol-Panglao, Laguindingan, Bicol, Iloilo, Puerto Princesa, Davao, Bacolod, Kalibo, Busuanga and Siargao.

Sec. Bautista also disclosed at the Management Association of the Philippines meeting Wednesday, a plan to create Philippine Airports Authority (PAA) to manage all other airports, and the National Transportation and Safety Board (NTSB) to investigate transport related accidents, be it in the air, land, or sea.

"we also need legislative action to separate the regulatory and operator functions of airport authorities," Bautista said.

"We also need an independent body to perform standard aviation investigations." Bautista adds.

Currently, both regulatory and airport operator functions are managed by the Civil Aviation Authority.

Bautista said the two conflicting functions should not be dispensed by the same agency and the country needs a law to delineate them.

"A new agency should regulate airport users while another operates the airport," the Secretary points out.

Revenues generated from the lease of operations and maintenance services of the airport will be use to expedite the improvement of other airports that needs major infrastructure investments.

Among the airport beneficiaries are four regional airports in Dumaguete, Siargao, Zamboanga and Masbate which will be improved and transferred to a new location.

"We are also fast-tracking the airside improvement at Bicol International Airport, the country's newest international gateway." he said.

Bukidnon Airport Takes Shape

 20 April 2023

Mindanao's newest airport of international standard in Bukidnon is  due for completion on April 3, 2024

New Manila International Airport Take Shape

 14 April 2023

The Philippines new premier airport is taking shape in Bulacan ahead of schedule as Boskalis expects to finish reclamation project in the third quarter of 2023 instead of the last quarter. The new Manila International airport is expected to open to the public in 2026 with two runways and initial terminal capacity of 35 million passengers per annum.