Paul Lewis/SINGAPORE
Philippine Airlines (PAL) is to offload 74% of its aircraft, including 15 new Airbus A330/ 340s, and will dump 68% of its international and domestic services in a bid to keep its finances afloat.
Under a dramatic restructuring plan presented to the Philippine Securities and Exchange Commission for approval, PAL will dispose of 40 of its 54 aircraft, and its worldwide network of 69 destinations will be cut to just seven international and 15 domestic.
"We'll begin anew," says PAL senior vice-president Avelino Zapanta, but he adds: "This is going to involve certain penalties."
Disposals will include all eight of PAL's A340-300s, plus four A330-300s, six 747-200/400s, 10 Fokker 50s and its remaining Airbus A300B4s and leased 737-300s. Discussions are under way with manufacturers and leasing companies to sell or lease the excess aircraft.
A further five A320s are still on order and are nearing completion in Toulouse; three others were deferred earlier. The airline has not formally cancelled the five remaining orders, but it is understood that Airbus has been approached by two potential US and European buyers.
PAL plans to keep 14 aircraft, including four 747-400s and four A330s, to operate curtailed daily services to San Francisco, Singapore and Taipei, six weekly flights to Los Angeles, 13 to Tokyo and Fukuoka and twice daily to Hong Kong.
The airline will also retain three A320s, for trunk domestic routes from Manila to Bacolad , Cagayan, Cebu and Davao, and three 737-300s for 11 secondary destinations.
After sacking 600 striking pilots, PAL says it has 83 crew working and needs another 70 to operate the new network from September. "We're in Jakarta talking to Indonesian pilots, including those laid off by Sempati," says Zapanta.
Source: Flight International
