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Philippine Airlines Plans For Purchasing New Planes, Eyes For Five Star Status

By Staff Writer

Feb 15, 2016 07:19 AM EST

Philippine Airlines, familiar with the trade name PAL Holdings Inc., is expected to announce a new aircraft deal at the Singapore Air Show scheduled to kick off on Tuesday. Airplane-makers Airbus Group SE and Boeing Co. appear as contender to revive sales in a region embattled for overcapacity.

PAL Holdings' President Jaime Bautista has declined to comment on probable model of the carrier. But he has hinted for announcing the purchase on Wednesday reports Bloomberg while covering his interview in Singapore on Sunday.

The Philippine flag carrier is hinted to consider for buying six aircraft through a firm order with an option to purchase six more. PAL has also been hinted over an ongoing debate for Airbus's A350 wide body aircraft or Boeing's 787 Dreamliner, reports Daily News citing an interview of Bautista in November.

PAL pledges for rolling off Los Angeles-Cebu flight in March 2016. This route is believed to enable US passengers to fly for Cebu bypassing Ninoy Aquino International Airport. It has also been considering for initiating flights to Saipan and an unnamed European destination, reports Alternative Airlines citing another interview with the PAL chair on January 26.

If announced during the Singapore Auto Show, the order will appear amid concerns over Southeast Asian airlines' order for more planes than their actual requirements. However, Tony Tyler, President for International Air Transport Association has predicted on Sunday that airlines from this region may defer plane orders.

His assumption is based on the fact that airlines from this region are embattling for intense competition with the low fare carriers. Budget carriers in the region have occupied 54% market stake which is more than twice the global average.

Philippine Air intends to replace some of its Airbus A340 jets with the new planes, as it mulls expanding U.S. and Europe routes. PAL has reportedly taken a program designed to elevate it to a five star carrier in compliance with Skyrax's airline rating system.

Other five star rated carriers include Cathay Pacific, Singapore Airlines, Qatar Airlines and All Nippon Airlines among others. The program aims to offer improved customer experience.

Southeast Asian Airlines have been rumored to order for more planes than the actually require. Defying such oddness, PAL chair has hinted for an announcement on purchasing new planes on Sunday. The announcement is expected to take place on Wednesday, which aims to expand the carrier's routes in US and Europe. Moreover, the move also aims to elevate the career to five star statuses.  

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