PAL allots $650 M for 2019 capex

MANILA, Philippines — Flag carrier Philippines Airlines (PAL) is spending about $650 million in capital expenditures this year to support mostly its fleet expansion.

“The six airplanes will be the capex, plus the support infrastructure,” PAL president Jaime Bautista said.

Bautista said the company spent roughly $2 billion last year as it took delivery of more airplanes totaling to 15.

“This year we’re taking delivery of six new airplanes,” he said.

PAL’s six new aircraft will consist of two Airbus A350, two A321neo, and two Bombardier Q400.

Bautista said the two new A321neo, which will be used for long-haul flights, are expected to arrive in the third quarter.

PAL’s current fleet stands at 97.

“But out of these 97, we will also retire some old Bombardier. So minus nine. We’re using these airplanes currently only as backup aircraft. We’re planning to sell these also and we have interested buyers already,” Bautista said.

PAL, the country’s only four-star global airline, intends to ramp up operations in the Asian region within the first half by launching new routes to Hanoi (Vietnam), Phnom Penh (Cambodia) and New Delhi (India) from its Manila hub.

The expansion will create the first direct air link between the Philippines and the capital of Cambodia, expands PAL’s existing Vietnam network, and re-establishes a historic link to India with immense potential for tourism development.

The airline is also upgrading later this month to a more advanced passenger service system as part of efforts towards becoming a five-star airline.

PAL has undertaken recent innovations such as enhanced business class experience on long-haul flights, a new premium economy service featuring a private cabin on Airbus A350 and tri-class A330 aircraft, enhancements in inflight meals, onboard entertainment systems, long-haul duvet service and cabin mood-lighting.

It has also introduced faster and more convenient nonstop routes to New York, Auckland, Toronto, Sapporo, Brisbane and by April, to New Delhi.

PAL said the improvements in products and customer services are in line with its long-term goal to achieve full five-star premium airline status, a rating reserved for the best international airlines.