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PAL rounds up finance for its fleet renewal program

October 3, 2013 Aviation, Headline News No Comments Email Email

egtmedia59Philippine Airlines (PAL) is holding discussions with banks and export-credit agencies to finance its USD 9.5-billion fleet-modernisation program, the Philippines Business Mirror reports.

The program involves the acquisition of 65 new aircraft from Airbus.

PAL last month took delivery of its first Airbus A321. The plane, handed over at the Airbus delivery centre in Hamburg, is the first new Airbus aircraft ordered by the airline under the fleet modernisation program announced in 2012. EGT_Artical Banner A 250x250

These include 45 single aisle A321s and 20 widebody A330s.

PAL has specified a two-class layout for its A321s, with 12 seats in Business Class and 187 in Economy. The airline will operate its new A321s primarily on international routes across the Asian region, as well as on selected domestic flights.

PAL finance consultant Ian Reid told the Business Mirror that the Philippine flag carrier was in talks with banks, but refused to say how much was being negotiated.

He said it consisted of a mix of internal funding and debt funding from a combination of local banks and export credit agencies.

The 65 aircraft, which were ordered last year, include 45 A321s and 20 A330-300,  due for delivery between 2013 and 2019.

The A330s will be used to service PAL’s Middle East routes, starting with Abu Dhabi on 1 October 2013.

PAL Senior Vice President Ismael Augusto Gozon said two more A330s would be delivered on 6 October 2013, followed by three more before the year ends, giving PAL a total of six A330s and six A321s by end of this year.

PAL is expected to complete a joint venture deal with Cambodia’s Inter Logistics (Cambodia) Co. Ltd. (ILC) on 15 October, the paper reported. It is reportedly seeking a 49% stake in Cambodia Airlines, which is 100-percent owned by ILC.

Written by : William Sykes

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