Since 2023, I have been hoping for Philippine Airlines (PAL) to put in another aircraft order. Given the positive outlook of air travel demand, upcoming airport improvements in Manila, Bulacan, Clark, and Cebu, and the continuous economic growth, it is about time for PAL to place a new aircraft order. Yesterday, ABS-CBN reported that PAL is considering purchasing ‘100 planes,’ but the actual number may be closer to 80. Nevertheless, if this order materializes, it will be the largest aircraft order in PAL’s history.
Financially, the value of the order may even surpass that of Cebu Pacific, as PAL’s order will likely include a range of widebody jets. The study board includes replacements for the A330s, possibly the Boeing 787 family or the Airbus A330neo. Other planes being considered are more A350-900s. Although PAL has not confirmed which exact planes they are eyeing, this order will be massive.
If we add the current 22 aircraft to be delivered to the airline, including nine A350-1000s and thirteen A321neos, the pending order of PAL may reach 100. Thus, this could mean an upcoming order of 70 to 80 aircraft.
PAL’s Biggest Plane Order Currently
So far, PAL’s largest single order was in 2012 when San Miguel Corporation purchased a minority stake and management control of PAL. The order included thirty-four A321ceos, ten A321neos, and ten A330-300s, valued at $7 billion. PAL later ordered an additional ten A330-300s.
However, after San Miguel handed over control of PAL to the Lucio Tan group again in 2014, the orders were deferred to a later date due to overcapacity issues. Some A321ceos were converted to A321neos, totaling 21 A321neos. So far, 8 have been delivered, with 13 more expected to be delivered, hopefully beginning next year instead of 2026. The original 20 A330-300s were reduced to 15 A330-300s, but PAL later ordered six A350-900s with an option for six more.
PAL’s next order may be its largest in history, considering it could be up to 80 aircraft. Will it be the largest single order in Philippine aviation industry in terms of total value? Depending on the number of widebody aircraft, it may or may not be.
PAL Definitely Needs New Planes
Regardless, PAL is in dire need of new planes. Its current fleet count and average fleet age are causing the airline more than just image and branding issues; the maintenance costs of old planes are rising. I also doubt that PAL has enough spare planes in the event one has to go on AOG (Aircraft on Ground).
At the same time, airlines globally are placing more and more plane orders. If PAL doesn’t order soon, the delivery dates may be pushed back further. I feel it may best for PAL to go for a long-term order, hence the need for a massive plane order. This order will serve as both fleet replacement, capacity increase, and network expansion. Together with PAL Express, the PAL group should have more than 100 planes until 2040 to keep up with the demand and annual passenger growth rate in the next 10 years.
Whatever the specifics, PAL needs new planes and a massive order to stay competitive with global airlines in the region.
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Here’s my take, PAL should replace their older fleet with new ones:
– Replace older A320CEO’s with A320Neo’s.
– Replace older A321CEO’s with A321Neo’s.
– Replace older A330CEO’s with A330Neo’s.
– Replace older Boeing 777 with Boeing 777X.
– Consider buying or adding Airbus A350-1000 or A350ULR.
– Consider buying Embraer E2 or A220 for PAL Express for Regional flights.
Add More and Revive Old Destinations. Open Routes to Europe, Africa, Russia, Latin America, and New Zealand.