PAL eyes Brazil

Philippine Daily Inquirer
October 15, 2012
By Paolo G. Montecillo

While plans to expand operations to the United States have been put on hold, flag carrier Philippine Airlines (PAL) has set it sights southward as it makes plans to fly to Latin America's biggest economy, Brazil.

PAL president Ramon S. Ang over the weekend confirmed that the airline was preparing its application to secure the government's approval to fly to South America.

Plan for Brazil as a route is in line with the company's strategy to expand its international operations while it transfers bulk of its domestic traffic to sister firm Air Philippines, which will be renamed PAL Express.

Aside from Brazil, PAL earlier said it was planning flights to destinations like Paris and London in Europe, as well as in New York and Chicago in the United States. PAL also wants to have eight destinations in the Middle East by the end of next year.

Starting November, PAL will also start a thrice-a-week service to Toronto, Canada - the airline's only destination in North America's east coast.

Last April, the Civil Aeronautics Board (CAB), in a report to the Department of Transportation and Communications, included Brazil on its list of 10 international growth markets for the local aviation sector.

"Brazil produces more visitors to the Philippines than any other South American country," CAB said. Brazil is the only South American market on the list, which is topped by  South Korea, Japan, China, Thailand and Indonesia.

PAL currently has plans to add 100 brand-new aircraft to its current fleet of 39 planes. The company already has placed an order for 64 new Airbus jets - a combination of wide and narrow-body planes worth $10 billion - from European manufacturer EADS.

By the end of the President's term in 2016, the government hopes to have 10 million foreigners visiting the Philippines, up from three million in 2010.

Diversifying conglomerate San Miguel Corp. last April took control of PAL from the Lucio Tan group last April. The former food-and-beverage group steered the airline to an $11.4-million profit in its first three months of operations.