PAL partners with Airbus, Drops its Economy Premium and Business class seats

Philippine Airlines has announced that it will drop its premium economy seats and reduce business class tickets. The company stated that the strategy aims to increase its overall viability. By reducing business and premium economy seats, PAL can place passengers in regular economy seats. According to PAL CFO Nilo Thaddeus Rodriguez, this will allow the company to “better adapt to changing market situations.”

PAL has also been in talks with a European aerospace company called Airbus. In a statement from Airbus, their company was meant to aid PAL by reconfiguring the narrow and widebody planes. The cabin modifications would cover 11 A320s, two A330-300s, and two A350-900s. Additionally, Airbus’ involvement would increase the A320s seating capacity by 24 or 15%.

In their statement, Airbus noted that business class and economy class would be retained in the A350s Furthermore, the company did not report on the aircraft’s premium economy cabins, a middle-market offering with better food and legroom.

“Our aircraft deployment decisions and related technical support arrangements are tailored for a restructured network that suits a vastly different global environment,” Rodriguez said in the statement.

These announcements come off of PAL’s exit from the US Chapter 11 bankruptcy, where the carrier successfully negotiated the reduction of $2.1 billion in aircraft-related debts.

The country’s flagship airlines have also committed to a new business strategy by returning over 20 borrowed planes and canceling unprofitable long-haul routes. The canceled routes may include London and the North American East Coast.

PAL management reports that it would return to profitability as early as 2022. Based on their projections, this year’s revenue will be $2.1 billion while 2024 would see a growth of $490 million.

PAL management earlier told the Chapter 11 court it could return to profitability as early as 2022.

When discussing these new business strategies, PAL notes that their partnership with Airbus would be a key driver for its future performance.

“Airbus has its customers’ interests at heart and works closely with them to propose flexible material solutions that meet their needs,” Anand Stanley, president at Airbus Asia-Pacific, said in the statement.

“We are pleased that PAL recognizes the significant savings and operational performance which Airbus can bring with FHS, extending the current arrangement to their A330 and A321 Family fleets,” he added.

Source: Inquirer