By Ashley Erika O. Jose, Reporter
FLAG CARRIER Philippine Airlines (PAL) said it is in talks with financial institutions to secure approximately $500 million in funding for the acquisition of three additional Airbus aircraft.
“These three that we ordered are just options. It is for our buffer,” PAL President and Chief Operating Officer Stanley K. Ng told BusinessWorld on Tuesday.
This additional aircraft purchase is on top of the nine A350-1000s planned by the company, Mr. Ng said, adding that, overall, PAL is now ordering 25 aircraft.
“Maybe half a billion [for these three], more or less around that. We are talking to the banks right now for the funding,” Mr. Ng said.
“For the buffer, it will be by 2025,” he said, when asked about the expected arrival of the additional three Airbus A350s.
Deliveries for the nine A350-1000s are scheduled until 2027 and will be operated on nonstop services from Manila to North America, including the East Coast and Canada.
In April, PAL said that it was targeting to purchase 13 A321 New Engine Options (NEOs).
These aircraft will start arriving next year and continue through to 2028, he said.
For 2024, the flag carrier has allocated $450 million, or more than P25 billion, to fund its capital expenditure this year, which includes fleet expansion amid growing demand.
Mr. Ng said the company is optimistic about reaching its expected rise in passenger volume of around 20% by yearend.
Last year, the airline company carried a total of 14.7 million passengers, marking a 58% increase from the 9.3 million passengers recorded in 2022.
Data provided by the company showed that it managed to mount a total of 105,294 flights last year, 35.8% higher than the 77,533 total flights in 2022.
“We have plans in the pipeline for new routes, domestically and in some regions. We are exploring it,” he said.
PAL is also set to operate nonstop Manila-Seattle flights three times a week beginning Oct. 2.
Aside from Seattle, which the company considers a promising market, the airline is also looking to explore more Asian and domestic destinations. However, some long-haul flights it plans to operate will be on hold for now until the arrival of its aircraft order.