Philippine Airlines (PAL) is due to resume skeleton international flights from 15 October, following the restart of domestic services with a much reduced fleet of aircraft. It is now seeking to attract new foreign investors, with efforts focused on Cathay Pacific Airways and Northwest Airlines.
International operations will begin shortly, initially from Manila to Los Angeles and San Francisco and then to Fukuoka, Hong Kong, Singapore, Taipei, Tokyo and Xiamen, totalling some 37 weekly flights. Frequencies will be increased from the end of October, with the addition of flights to Dharan , Riyadh and Osaka.
PAL's latest plan, to be submitted to the local Securities and Exchange Commission, calls for the retention of 23 aircraft, compared to the 54 operated before the start of industrial action in June. It will be made up of seven Airbus A330-300s, two A340-300s, two A320s, four Boeing 747-400, six 737-300s and a single Fokker 50.
Those aircraft not immediately needed will be parked in Australia. The airline has begun talks with the US Eximbank to return two 747-400s seized by the creditor after the airline shut down services on 23 September. Its other aircraft are to be returned to lessors or disposed of, including four A340-200s and four A300B4s leased from Airbus.
PAL's resumption of flights to 17 domestic destinations on 7 October has signalled an early end to Cathay and Dragonair's internal charter services. The latter, however, has confirmed the dispatch of a due diligence team to Manila with a view to a possible stake in PAL.
"We are exploring the possibilities, but it would be too premature to say what form of involvement we may take," says Cathay. According to PAL senior management, Northwest is also a potential suitor.
The Philippine Government says that the carrier needs some nine billion pesos ($205 million) in fresh equity, of which the carrier's majority shareholder, Lucio Tan, has pledged 4 billion pesos.
Source: Flight International
