The Boeing 747-8 Intercontinental Was Not a Right Fit for PAL

Philippine Airlines was an operator of Boeing 747 for 35 years. Why didn’t PAL consider operating the latest version of the jumbo jet, the 747-8 Intercontinental? The 747-8 is a magnificent aircraft, way more beautiful than the superjumbo Airbus A380-800. It has a range of 15,000km. It can fit 467 passengers in a 3-class configuration. Why didn’t PAL even consider this?

PAL operated Boeing 747s for 35 years but decided not to add the latest version, the 747-8 Intercontinental, to its fleet. The 747-8 is an impressive aircraft with a range of 15,000 km and a capacity of 467 passengers in a three-class configuration. Despite its beauty and capabilities, PAL found that the 747-8 wasn’t suitable for their current needs, even though they had previously used 747s. PAL’s largest aircraft now is the Boeing 777-300ER.

Considerations When Airlines Choose an Aircraft

Selecting an aircraft for an airline’s fleet is a complex process that can take years, considering multiple factors such as fuel efficiency, cost, configuration, maintenance expenses, range, cockpit commonality, payload, current and future destinations, market demands, fuel load, airport facilities, and utilization rate.

Airlines also consider passenger preferences and flight schedules, aiming to maximize route efficiency whether using a hub for transit or point-to-point travel. Here are the primary reasons PAL decided against the 747-8 Intercontinental.

Fuel Economics

Fuel is the largest expense for airlines, making fuel economy a top priority.

Comparing the Boeing 777-300ER and the 747-8I:

• The 777-300ER has a fuel burn rate of 8.49 kg/km on an 11,000 km sector with 365 seats, equating to 2.91 L/100 km.
• The 747-8I consumes 10.54 kg/km on the same distance with 467 seats, equating to 2.82 L/100 km.

While the 747-8I’s fuel burn per seat might appear slightly better, the aircraft must be nearly full to justify the higher overall fuel costs. PAL can’t consistently achieve a high load factor, especially during low seasons, making it risky to operate such a large aircraft with so many seats.

Twin Engines Over Quad Jets

The 747-8I uses four GEnx-2B67 engines, whereas the 777-300ER uses two GE9-115BL turbofan engines. Modern trends favor twin-engine ultra-long-range aircraft, such as the Boeing 777, Airbus A350, Airbus A330, and Boeing 787, over quad jets. The world’s largest passenger aircraft, the Airbus A380, has seen declining popularity, leading to its phased-out production. Twin-engine aircraft are preferred for their lower maintenance costs and fuel efficiency.

Aircraft Utilization

Aircraft utilization is crucial for airlines to avoid having “ramp queens,” which are underutilized and costly. If PAL added the 747-8I, it would primarily fly to the United States and Europe. Limited routes would lead to underutilization, so PAL would need to operate these aircraft on other routes like Asia and Oceania.

While using one Boeing 747-8I flight instead of two Airbus A330 flights to destinations like Hong Kong might seem efficient, it reduces flight frequency. The market’s response to fewer flight options is uncertain, and maintaining high utilization rates with fewer frequencies can be challenging.

More Frequencies is the Way to Go

Many PAL passengers connect to other domestic destinations from their international flights, and the ease of transfer is a significant factor in attracting customers. Less frequent flights could lead to long wait times at transit hubs, potentially driving passengers to opt for low-cost airlines that offer more frequent services on both international and domestic routes.

For PAL, operating more frequent flights with smaller aircraft might be more beneficial than using larger aircraft with fewer frequencies. For instance, having two daily flights from Los Angeles to Manila, utilizing Boeing 777-300ERs and Airbus A350-900s, could be more advantageous than just one flight using a Boeing 747-8, providing passengers with more options and flexibility. This approach also addresses the challenge of maintaining high load factors, especially important for short-haul destinations where using a large aircraft like the 747-8 might not be economically viable due to the required fuel economics.

The Boeing 777-9X: A Better Fit Than the 747-8I

Several reasons support why PAL’s fleet planners did not see the 747-8 Intercontinental as a suitable option for the airline’s future needs. One major factor is the cessation of the 747-8, with only 36 units of the passenger variant currently in service compared to its more popular freighter version. With the upcoming Boeing 777-9X, which can carry 395 passengers in a three-class configuration and boasts newer, more efficient technologies, it becomes even less likely for airlines to consider the older 747-8I model, even if it were still in production.

The Boeing 777-9X, expected to enter the market soon, is an updated version of the 777 series but with a longer and more efficient design.

Ultimately, PAL chose to order the Airbus A350-1000 as a replacement for the 777-300ER. While it’s uncertain if PAL will consider the Boeing 777-9X in the future, the possibility of acquiring the Boeing 787-10 also remains open. The next few years will reveal more about the airline’s strategic decisions.

Despite any nostalgic appeal the Boeing 747-8I might have held, its feasibility and efficiency compared to newer twin-engine aircraft have diminished, making it a less suitable choice for an airline focused on optimizing operational and fuel efficiencies.