Tendersinfo keep you informed about the latest events in the national and international Procurement Industry. Procurement News provides in-depth coverage of the procurement industry, including contract awards, contract additions, new contract wins, mergers and acquisitions. Tendersinfo through its tender news section provides an update on all domestic and global tendering opportunities, invitation to bid & trade leads.

Publish Date : 27-Apr-2016

Philippine Airlines (PAL) has announced over the weekend on its strategy to make capital expenditures of as much as $800 million this year for the procurement of six new aircraft and spare components.

Interacting with media, the President & COO of PAL Jaime Bautista has revealed that they have planned an investment of $600 million to $800 million for the current year, significantly up from the last years capex of $400 million.

Bautista has disclosed that the Philippine airline company will purchase six planes and spare parts with the capex amount.

He added, We are taking delivery of six more airplanes this yeartwo Boeing 777-300 ER and four Airbus 321.

As part of a previously signed deal worth $1.8 billion with Airbus, PAL will procure six A350-900 planes.

This deal also offers the airline with an option for purchasing another six to allow the long-haul operations of the company.

PAL has strategy to operate the A350 XWB (extra wide body) on the new North American and European routes.

The airline is slated to receive the first of the A350 jets in 2018. The aircraft will have capacity to accommodate over 300 passengers.

For the current year, it is projected that the Philippine airline sector will surpass the average global growth of 6% to 7% slightly, according to the PAL boss.

Bautista disclosed, [But] the problem is the capacity of the airlines to grow because of too much airport congestion.

He has further said that the airline has set a target of flying 14 million passengers both national and international for the current year, up 2 million from the previous years passenger traffic figure of 12 million.

Bautista has revealed that the company is hopeful of surpassing the profit levels of 2014 in the year 2015.

The national flag carrier has reported $20.4 million in total comprehensive income in 2014. With this move, the company has returned to profitability after suffering losses for three years and on right track to sustained growth trajectory.

The air carrier during the first three quarters of 2015 has reported P6.55 billion in comprehensive income, representing a significant rise the same period last years figure of P169.1 million.

It is notable here that the airline now operates as the fully owned firm of industrialist Lucio Tan.

Tan repurchased a stake of 49% from San Miguel Corporation that he sold to the company in 2012.

The comprehensive income grew substantially during the period under review by 10.8% to P81.98 billion from P73.98 billion in 2014 and PAL Holdings attributed this encouraging augmentation to robust revenues.

PAL has reported a 12.5% increase in its passenger revenues to P68.37 billion during the first three quarters of 2015 from P60.78 billion reported in the year-ago period.

Go to previous page