Philippine Airlines now flies nonstop to Toronto, will also return to Europe and the Middle East

[flee 5]

Airbus (EAD.PA) won a $7 billion order on Tuesday from Philippine Airlines (PAL.PS), beating Boeing (BA.N) to a deal marked by diplomatic lobbying as the European planemaker appeared close to another major Asian deal in China.

 

The flag carrier plans to buy up to 100 new jets in total within the next five to seven years as it restructures operations to become a low-cost carrier and regain dominance of the local market from arch-rival Cebu Air Inc (CEB.PS).

 

Those purchases would take its fleet to around 140 planes, far ahead of Cebu's 38-strong fleet, which it plans to double. Philippine Airlines (PAL) said it was still in talks with both Airbus (EAD.PA) and Boeing for its next tranche of planes.

 

For this stage of its fleet expansion, the airline has ordered 10 long-haul A330-300s and 44 jets from the A321 family, with delivery starting in 2013, Asia's oldest airline said in a statement. The A321s include 10 existing models and 34 of a fuel-saving version available from mid-decade, the A321neo.

 

Industry sources said they expected some of these aircraft to replace older, less-efficient models, but most of the newly ordered aircraft would fuel expansion to counter Cebu Air, the country's largest budget carrier.

 

In Paris, shares in Airbus parent EADS bucked a weaker market to rise 0.5 percent to just under 30 euros.

 

Philippine Airlines will pay Airbus in cash, with part of the money to come from bank loans, said President Ramon Ang, who also heads Philippine conglomerate San Miguel Corp (SMC.PS).

 

The carrier is also ready to issue more shares to fund its jet purchases, it said in a statement.

 

"The good Boeing planes we are looking at are the 777-300ER and the upcoming 777-X. We're also interested in the Boeing 787-9 Dreamliner," Ang told reporters on the sidelines of the deal-signing event in Manila on Tuesday.

 

"We have the option on whichever type of aircraft to go," he said.

 

Boeing and Airbus are locked in a global contest for market share, in some cases more than halving prices to bolster orders of the newly revamped models of best-selling narrowbody jets, industry sources and analysts say.

 

San Miguel, which bought a 49 percent stake in PAL and a sister airline in April from Filipino billionaire and brewing rival Lucio Tan in a deal worth about $500 million, controls the management of the airline.

 

DIPLOMATIC DIMENSION

A territorial spat in the South China Sea, Asia's biggest potential military flashpoint, appears to have added a diplomatic dimension to the aircraft order talks as Washington seeks to cement a growing alignment with Manila on the issue.

 

One person familiar with the matter said there had been significant "commercial and political pressure" on the airline to secure a deal with Boeing.

 

Boeing declined to comment.

 

In Washington, the State Department acknowledged that it had lobbied for Boeing to get the deal, but described this as routine and said strong U.S.-Philippine ties would not be affected by the outcome.

 

"We always advocate for U.S. companies, particularly when there's a big contract at stake... but nations make sovereign decisions and they make them based on their own set of criteria," State Department spokeswoman Victoria Nuland said.

 

"We have a very long, deep, broad relationship with the Philippines. As you know, we are doing more now in the area of security support than wwe've been able to do in a long time, and I think that relationship is extremely strong," she said.

 

Beijing's sovereignty claim over the huge area has set it against Vietnam and the Philippines as the three race to tap possibly huge oil reserves.

 

The United States pledged in April to triple military aid to Manila in 2012 while remaining broadly cautious on defense ties.

 

In another diplomatically sensitive deal, a German government official meanwhile confirmed that Airbus expected to win more business from China, despite a recent row over airline emissions that obstructs a number of existing Chinese orders.

 

The EADS (EAD.PA) subsidiary is "optimistic" about securing deals during a state visit to Beijing this week by Chancellor Angela Merkel, the official said, asking not to be named.

 

EADS Chief Executive Tom Enders is due to join a large business delegation accompanying Merkel to China.

 

On Monday, industry sources said Airbus hoped to sell up to 100 A320-family planes to China during the trip.

 

Such short-range aircraft, some of which are assembled on Chinese soil, have been spared any fallout from the row between China and European Union as domestic travel expands.

 

China continues however to block the purchase of some 35 larger Airbus aircraft to protest against EU plans to enforce a carbon reduction scheme that opposing nations deem unfair.

 

China regularly orders aircraft in large batches timed to coincide with high-level contacts with U.S. or European leaders.

 

Despite the new deals, Airbus is widely expected to lose its position as top-selling plane manufacturer this year to Chicago-based Boeing, which is enjoying a resurgence after falling behind its European rival for five straight years.

 

Source: http://www.reuters.c...E87R04120120828

 

Flightglobal report: http://www.flightglo...ircraft-375819/

[Amirul Mazlan 0]

damn, why not Boeing..

[Ahmad M 1]

damn, why not Boeing..

 

What's wrong with Airbus?

[Kris Kim 0]

I think the A321's will do exceptionally well for PR, just look at VN, they have a sizeable fleet of A321's and with more on order and they serve as the workhorse for the airline regionally, it just seems to be the right aircraft for Medium and short haul flying around Asia.

 

TBH I prefer A320's, they seem to have abit more room, giving a less squash feeling not to mention they look great! None of that unproportionate nose, tail fin wedge and engines! I think A320's in MH colours would look quite striking!

[BC Tam 2]

... I think A320's in MH colours would look quite striking!

Nowadays it's necessary to specify which MH livery - blue & red cheat lined, Philippine flag/swoosh themed or Puma inspired ?

 

Also secured 3.5bn order from the Chinese yesterday

Total 10.5bn

Not been a bad couple of days for Leahy and gang eh ?

[alberttky 0]

Philippine Airlines aims to build own airport

 

 

Not content with embarking on an ambitious refleeting programme, Philippine Airlines (PAL) is planning to build an airport, dedicated to serving future aircraft additions.

 

After announcing this week a multibillion-dollar deal to acquire up to 50 new planes from Airbus (see news), the carrier revealed that infrastructure was also part of its expansion initiatives. Ramon Ang, president of PAL as well as president of PAL’s controlling shareholder San Miguel Corporation, told local media that they intended to seek government approval for “our own terminal and runway”.

 

While he declined to say where the facility would be located, he divulged that it would have two parallel runways, with the option of having two more, and would be exclusive to PAL and subsidiary PAL Express. It would also be able to handle four times as many flights per hour compared with the notoriously congested Ninoy Aquino International Airport (Naia). Manila’s old war horse was built in the 1950s and can only process 36 flights per hour.

 

Naia’s runways are perpendicular, thus preventing aircraft from taking off and landing simultaneously.

Ang believed that Clark Airport (Diosdado Macapagal International Airport) in Pampanga province, which has, of late, attracted several low-cost carriers such as AirAsia to set up a base there – was not feasible due to the distance from Manila. With the metro's famous gridlocks, departing from financial hub Makati would take two hours to reach Clark, the executive pointed out, then passengers would have to wait another two hours for their flight.

The proposed facility would be located in between Manila and Clark, Ang said, and would be accessed by elevated six-lane highways that would also feature hotels, malls and other facilities

PAL currently exclusively operates from the government-run NAIA Terminal 2 (Centennial Terminal), while Cebu Pacific and other carriers use Terminal 3.

http://www.businesstraveller.asia/asia-pacific/news/philippine-airlines-aims-to-build-own-airport

[khairuddin abu hanifah 0]

By Cheche V. Moral
Philippine Daily Inquirer

3:15 am | Saturday, January 19th, 2013

 

MANILA, Philippines—The Department of Tourism (DOT) appears closer to its goal of 10 million visitors by end of 2016 after receiving a major boost from the nation’s flag carrier.

 

Philippine Airlines has begun to make good on its promise of a major network expansion with its recent maiden voyage to Toronto, Canada, a plan that also includes PAL’s return to Europe and the Middle East, thereby opening new gateways into the country.

 

The nonstop direct service to Canada’s biggest city mark’s PAL’s return to the North American East Coast, its first in 15 years, and eyes a sizable potential market: Toronto has an estimated 200,000 Filipinos, the largest number in the whole of Canada. Canada is the No. 9 source of Philippine visitors, according to the DOT.

 

Toronto is PAL’s 27th international destination and 46th overall.

 

There has been much optimism when the Ramon S. Ang-led San Miguel Corp., which injected $500 million into PAL last year, announced its plans to partner with the Lucio Tan group to modernize the airline and thus lift the country’s Category 2 status in order to expand its route to the United States and its territories, and to new international destinations.

 

The US Federal Aviation Authority downgraded the Philippines to Category 2 status in 2008 after the country failed to comply with safety standards. PAL is working to raise the country’s rating.

 

Fuel-efficient

 

On its first flight to Ontario’s capital on Nov. 30, PAL flew its brand-new B777-300, one of its four new Boeing jets, the largest twin-engine extended-range aircraft, said to be “most fuel-efficient,” which can fly nonstop for 14,600 km. Two more B777-300 are expected for delivery this year, according to Felix “Bong” Cruz, PAL’s vice president for marketing support, at the joint press conference with the DOT at Shangri-La Toronto in December.

 

Each jet costs $290 million, and underscores PAL’s commitment to its customers, Cruz stressed.

 

Fleet modernization is one of the key points of PAL’s growth strategy under Ang’s management. On top of the new Boeing jets, Ang had also signed with Airbus to acquire 54 A321s and 10 A330s to be delivered beginning this year until 2017, with a total target fleet of 200, Cruz said.

 

The B777-300 seats 42 in Mabuhay Class (business) and 328 in Fiesta Class (economy). It features fully reclining (flatbed) Recaro seats, the same kind used on Porsche cars, in business class, and wider legroom with the latest Panasonic personal in-flight entertainment system in economy. (In the new jets, the configuration will include premium economy seats, according to Rafael Rollan, officer-in-charge of PAL commercial group.) Because it’s fuel-efficient, Cruz said each B777-300 would save the airline $20 million a year.

 

Service innovation

 

Apart from massive fleet modernization and route expansion, PAL is also committed to service innovation, according to Cruz, noting improved in-flight cuisine designed by five top chefs. iPads, preloaded with magazines and newspapers and other entertainment, will also soon be available onboard, and for a fee to economy passengers. Filipino travelers can now also book their PAL tickets online and pay cash at Petron stations and 7-Eleven, a service provided for flyers who are leery about using credit cards online.

 

The 15-hour nonstop flight from Manila to Toronto’s Pearson International Airport aims to give greater convenience for travelers, especially seniors, who typically spend hours on layovers. Apart from balikbayans, PAL is also hoping to attract those traveling from Toronto to Hong Kong and Ho Chi Mihn, highlighting easy connections with its regional and domestic destinations.

 

The return service from Toronto makes a stop in Vancouver “because we can’t fly direct to Manila due to head winds,” Cruz explained. PAL currently flies three times a week to Toronto (Wednesday, Friday and Sunday), and is expected to increase frequency this quarter. (For bookings, visit www.philippineairlines.com.) Cruz maintained that PAL offers competitive fares even as it puts premium on its one-plane direct service.

 

This year, PAL will also soon be flying to Darwin in Australia. Asia’s first airline aims to fly nonstop to New York, London, Paris, Frankfurt, and Rome in the near future.

 

The Philippines received some four million tourists last year, and by end of October, 86,000 of those came from Canada. The DOT is targeting 155,000 Canadian visitors by end of 2013, owing to the new PAL service. Nearly half of arrivals from Canada are balikbayans. Tourism growth, however, is seen not just on Filipino-Canadians but also on mainstream tourists, according to Tourism Assistant Secretary Benito Bengzon Jr.

 

These are Irish, British, Italians, the French in Quebec. Most travel to Europe but there’s growing interest in Asia,” Bengzon said. Right now, Canadian tourists are going to China, Japan and Hong Kong, “but we leverage the warmth of the Philippines,” he added. “We speak English, and our culture is diverse.”

 

Fourth top dollar earner

 

Tourism is the Philippines’ fourth top dollar earner, which should explain its priority status with the Aquino administration, said Tourism Undersecretary Daniel Corpuz.

 

“Tourism is a labor-intensive industry. For every hotel room built, two direct jobs are created,” Corpuz noted. With new hotels and resorts, as well as malls with convention centers, being built around the country, “by 2016, we’re looking at 6.8 million jobs created, up from 3.6 million existing jobs in the tourism and transport sectors,” he said.

 

DOT is diversifying its product offerings: from 70 percent beach holidays in the past three years, it’s expanding into meetings and conventions; health and wellness or medical tourism; and shopping and entertainment.

 

“We’re also improving market accessibility, connectivity and transport,” Corpuz said, emphasizing the significance of PAL’s expansion program into this. He also underlined the need to fast-track the improvement of airports and seaports.

 

“Ninety percent of Philippine visitors travel by air, and only 1 percent by cruise ships,” Bengzon pointed out. “Unlike other Asian countries, we don’t enjoy cross-border travel.”

 

Corpuz said the DOT is working with the Department of Foreign Affairs to ease travel formalities via a visa-upon-arrival scheme, targeted to commence this year, with priority for its large-volume markets, China and India.

 

But the DOT can’t do it all on its own.

 

It’s also counting on Filipinos to take part in the country’s promotion efforts—“inclusive approach,” they call it—pointing out how the “It’s More Fun in the Philippines” campaign started with only five versions when it rolled out in social media in January last year. It has spawned 50,000 versions, Bengzon said.

 

“Yes, we want people to help us define the ‘fun’ in the Philippines.”

 

Source: http://lifestyle.inquirer.net/85879/asias-first-airline-now-flies-nonstop-to-toronto-will-also-return-to-europe-and-the-middle-east?goback=%2Egde_90578_member_206036657

[amanairways 0]

By http://lifestyle.inquirer.net/byline/cheche-v-moral]Cheche V. Moral[/url]http://lifestyle.inquirer.net/source/philippine-daily-inquirer]Philippine Daily Inquirer[/url]

3:15 am | Saturday, January 19th, 2013

 

MANILA, PhilippinesThe Department of Tourism (DOT) appears closer to its goal of 10 million visitors by end of 2016 after receiving a major boost from the nations flag carrier.

 

 

 

Fuel-efficient

 

Apart from massive fleet modernization and route expansion, PAL is also committed to service innovation, according to Cruz, noting improved in-flight cuisine designed by five top chefs. iPads, preloaded with magazines and newspapers and other entertainment, will also soon be available onboard, and for a fee to economy passengers. Filipino travelers can now also book their PAL tickets online and pay cash at Petron stations and 7-Eleven, a service provided for flyers who are leery about using credit cards online.

 

The 15-hour nonstop flight from Manila to Torontos Pearson International Airport aims to give greater convenience for travelers, especially seniors, who typically spend hours on layovers. Apart from balikbayans, PAL is also hoping to attract those traveling from Toronto to Hong Kong and Ho Chi Mihn, highlighting easy connections with its regional and domestic destinations.

 

Yes, we want people to help us define the fun in the Philippines.

 

Source: http://lifestyle.inquirer.net/85879/asias-first-airline-now-flies-nonstop-to-toronto-will-also-return-to-europe-and-the-middle-east?goback=.gde_90578_member_206036657]http://lifestyle.inquirer.net/85879/asias-first-airline-now-flies-nonstop-to-toronto-will-also-return-to-europe-and-the-middle-east?goback=.gde_90578_member_206036657

[/url]

 

So PETRON which we can see all over KL is a Fillipino company , are they petrol stations too ?

Wow the Fillipinos must be super rich to open PETRON in Malaysia.

Edited January 21, 2013 by amanairways

[Sharil Abdul Rahman 0]

actually Petron is Malaysian.

 

Is owned by San Miguel, which is owned by a Malaysian.

 

a roundabout way to own it i think.

 

Also, PAL is becoming LCC?

Edited January 21, 2013 by Sharil Abdul Rahman

[JuliusWong 0]

No, San Miguel Corporation is owned by one of the richest family in the Philippines, the Cojuangco family. San Miguel Corporation (SMC) is Southeast Asia's largest publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major facilities throughout the Asia-Pacific region.

 

In August 2011, ExxonMobil, owner of Esso and Mobil brands agreed to sell its interest in three businesses operating in the Malaysian downstream petroleum sector to San Miguel Corporation of the Philippines. Petron Corporation is the largest oil refining and marketing company in the Philippines, and is majority owned by beverage maker San Miguel.

 

The total transaction value was US$577.3 million for 65% of Esso Malaysia Berhad, 100% of ExxonMobil Malaysia Sdn Bhd and 100% of ExxonMobil Borneo Sdn Bhd. Petron also wrapped up the acquisition of 175.5 million ordinary shares in Esso Malaysia at RM0.50 per share, totaling US$195.123 million.

 

SMC is also the powerhouse behind Philippines Airlines after buying 49% stake from Lucio Tan, another wealthy man in the Philippines.

[Lock SH 0]

Mahathir's son is one of the BODs and shareholders in PETRON/San Miguel. That explained some of the mysteries .........