PAL Planning Manila-NY Flights

Manila Bulletin
By JAMES A. LOYOLA

Philippine Airlines (PAL) aims to beat rival carrier Cebu Pacific Air to the draw by aiming to start flying the Manila to New York route in three months-notwithstanding the Philippines' Category 2 status.

In an interview, PAL President Ramon S. Ang said cryptically that they already have a way to overcome this obstacle adding that “we assure you, we will be the first to come out with Manila-New York flights.“

Ang said PAL also intends to use its new Boeing 777-300ER to fly Manila-Toronto and Toronto-Manila non-stop. The carrier already has two of the long-haul aircraft and has ordered four more, of which two will be delivers this year and two more next year.

“We hope we can resolve quickly the category 2 issue so we can go to Europe including London, Paris, Rome,” said Ang.

Ang said he is confident of being able to turnaround PAL’s finances so that it will be profitable, together with
its budget unit Air Philippines, in just one year after San Miguel Corporation invested in it.

He said profitability can be boosted by improving PAL’s system of selling tickets, to get better yield and pricing, as well as by lowering cost through better aircraft utilization.

“From an average of 10 hours per aircraft, we will raise utilization up to 16 hours,” said Ang.

He added that, “in a year or two, PAL will have the most beautiful flight attendants in Asia” as the airline plans to woo more passengers by having the best service, newest aircraft and the best food on board.

PAL intends to acquire 100 aircraft in the next five years. Aside from the new 777-300ERs, the carrier has also order four additional Airbus A320s in preparation for the expansion of its route network. The expansion and modernization program will be bankrolled by the $500 million SMC will be infusing into the airline. Last month, San Miguel Equity Investments Inc. entered into investment agreements with Lucio Tan's Trustmark Holdings Corporation and Zuma Holdings and Management Corp. giving SMC a 49 percent stake in PAL and AirPhil.