Should PAL acquire NTU Qatar Airways Airbus A350-1000 aircraft?

Should PAL acquire NTU Qatar Airways Airbus A350-1000 aircraft?

According to a recent post, Philippine Airlines is considering restoring flights to London, Auckland, and New Zealand in 2023, depending on the airline’s performance and numbers. However, the airline’s President and COO Capt. Stanley Ng stated that due to a lack of aircraft, returning to those destinations would be impossible right now. Now, if things go well for PAL in 2023 and they intend to return to London, they will undoubtedly require more widebody aircraft. As a result, many people are wondering if PAL will take the Not Taken Up (NTU) A350-1000 jets that were originally destined for Qatar Airways.

For context, Airbus recently cancelled all outstanding Qatar Airways aircraft orders due to paint issues on their A350s. This includes 19 A350-1000s, some of which are already on the ground. Qatar Airways refuses to take delivery of the plane until their demands are met and all paint issues are resolved.

This case is still being litigated in court, but Airbus no longer has any pending aircraft deliveries for Qatar Airways. It is also unlikely that Airbus will change its mind.

But, yes, it is now clear that there are Airbus A350-1000s ready to be delivered to airlines in immediate need of an aircraft, and I believe PAL fits the bill perfectly.

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Need for long haul aircraft for 100% recovery

Prior to the pandemic, PAL had ten Boeing 777-300ERs and six A350-900s, both of which were used for London flights. However, the chapter 11 filing forced the airline to cut debts, resulting in the return of widebody aircraft to lessors. This included four A350-900 aircraft. While reducing debt, the airline’s profitability has improved to the point where profits have exceeded $2 billion.

Things may catch up with them if they do not add more aircraft.

Capt. Ng did mention that some of the planes are getting old. “Some of our planes are getting a little bit old in terms of aesthetic, but in terms of engines and safety, it’s perfect, but of course, people right now are more demanding of the seats,” said Capt. Ng.

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Two Boeing 777-300ERs, RP-C7777 and RP-C7776, are approaching their 13th birthday. Their lease, as far as I know, are also about to expire. As a result, the new widebodies will not only add capacity, but will also replace the old jets.

According to Planespotters.net, the average age of PAL’s fleet is 8.2 years, making it a young fleet. The average age of an A321neo and an A350 is four years. Their A320-200s, on the other hand, have an average age of 13.1 years, while their Boeing 777-300ERs have an average age of 8.7 years. PAL now operates 63 aircraft, including those of its subsidiary PALexpress.

While PAL’s fleet and network planning teams continue to evaluate, here are my best guesses.

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Qatar Airways A350-1000

If PAL intends to add more widebodies in 2023 in order to fly to London and add capacity during the strong travel rebound, taking those NTU A350-1000s originally bound for Qatar Airways might be the quickest way to acquire widebody aircraft immediately as long as the finances and terms are favorable. Three A350-1000s have already been built out of the 19 outstanding orders, and it appears that Airbus will soon offer them to other airlines.

According to AIB Family Flights data, Airbus continues to keep Qatar Airways’ NTU A350s in good working order, with various maintenance activities performed at regular intervals.

Short-term leasing of aircraft, such as more Boeing 777-300ERs, is another option for acquiring more widebody aircraft by 2023.

PAL also has options for 6 more A350-900s in which they may be able to convert to A350-1000s.

Taking two or all three of those Qatar Airways NTU A350-1000 would, in my opinion, be the quickest way for PAL to acquire more widebody aircraft by 2023 that are practically brand new. If this occurs, I’m curious if the cabin will be configured similarly to the Boeing 777s or if they will have a new cabin layout with premium economy seats. Of course, all of this is dependent on PAL’s revenue targets and number crunchers, but this is an option their fleet planners must consider.

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Fleet planning is a very tedious job in which things cannot be decided overnight. If you want to know how airlines choose aircraft for the fleet, you might want to read this.

It is something to look forward to in 2023, when PAL will be able to offer better products and customer service, as Capt. Ng envisions.

For the time being, we can only hope that PAL meets its revenue targets. So far, 2022 has been kind to them, and I hope that trend continues into 2023 and beyond.

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