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New President, new ambitions for Philippine Airlines

Appointed in April 2012 at the head of Philippine Airlines,  President Ramon S Ang has big ambitions for the Filipino national carrier. The San Miguel Corporation President and CEO wants to build a new airport and predicts PAL come back to Europe and New York…

MANILA – Philippine Airlines said that it would acquire three more Boeing 777-300ERs in addition to the three it has already on its fleet, raising the order to six firmed aircraft’s order. PAL’s first two B777 aircraft were leased with its most recent delivery being company-owned. The three additional B777s—scheduled for delivery in November 2012, April 2013 and November 2013—will all be company-owned. Overhaul of the fleet will help saving as much as US$ 300 million in operating costs each year. And also fills the hope to relaunch PAL’s intercontinental development.

The Philippines receives around four million overseas travellers per year but suffers largely from a deficit in intercontinental flights. PAL operates only a restricted number of flights to the USA and pulled out from Europe over a decade ago.

PAL President Ramon S. Ang is keen to redeploy capacities on intercontinental routes now. He recently disclosed PAL’s plan to introduce nonstop flights to Toronto, Paris and New York City. Toronto is likely to be added in three months time while flights to Paris could be started by February next year. Toronto will be served three times per week from November 30 while capacity to Vancouver will be at the same time reduced to four weekly services.

Talking to Filipino media, Mr. Ang declared that PAL strategy was simple: modernization of its fleet, expansion of its network and improvements in passenger service. “PAL must become known for its warm, sincere and hospitable service. Each of us must be passionate about exceeding the expectations of our passengers in creative and helpful ways,” Ang said.

PAL President announced also plans to build a new 2,000-hectare airport within the next three years in partnership with Korea. Congestion at Manila NAIA –its main base- recently forced the Department of Transportation and Communications (DOTC) to order a reduction in traffic at NAIA due to delayed and cancelled flights. Little move into the development of a proper fast public transport as well as an international air terminal with high standards at Clark International Airport makes it impossible for PAL to relocate there. Clark is 80 km away from Manila requesting a two hours ride on average to reach the airport’s premises.

PAL is then looking for alternative solutions. The new airport would encompass four runways. The planned air terminal will be presented to Philippines President Benigno Aquino III for approval, PAL President Ramon S. Ang told reporters during last week press conference after the stockholders’ meeting.

PAL would start building the new terminal in 2013, hiring Korean contractors, as soon as the President approves the project. “We can finish the terminal in three years,” Ang said. The airport would be linked by a six-lanes highway to Makati business district. He declined to give further details of the project, other than saying it would be easy to get financing with a US$ 500-million equity.

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Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.

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