PAL pushes on with fleet upgrade despite headwinds

MANILA — Despite current geopolitical and economic uncertainties, Philippine Airlines is going ahead with its fleet upgrade to meet the expected rise in demand for air travel in the coming years.

The flag carrier earlier gave ABS-CBN a glimpse of the A350-1000 aircraft that Airbus is building for the airline in Toulouse, France. 

PAL President Richard Nuttall said the challenge for the airline is to keep 'lifting things to another level,' whether it's in wifi, in-flight entertainment, seats or space.

Air travel is expected to keep growing in the coming years, with prices coming down. Nuttall added that while the market to some degree sets the price of air travel, the price inevitably goes down.

"If I look at the history of pricing of air travel, same-day dollars, air travel gets cheaper and cheaper and cheaper," Nuttall said.  

He said that in the 1960s, the price of a 'world ticket' was around $2000. Today, he said, despite the inflation ensuing through the decades, the price of a world ticket is still around $2000. 

"So I think in the value of currency, airline travel gets cheaper and cheaper and cheaper."

This is partly driven by efficiency, particularly in fuel. The 25 percent fuel efficiency --- a feature of the A350-1000 aircraft PAL is buying, will gradually flow through to passenger fares.

Nuttall also shared how they are developing three different network plans, which will depend on how fast NAIA can expand, how many slots the airline will get, and on global growth.

"Sometimes I think it's almost easier to forecast what's going to happen, 10 years out, 15 years out, than it is what's going to happen in the next 2-3 years. 

"But longer term, the trend remains the same. We keep our flexibility there," he added.

Meanwhile, PAL COO Atty. Carlos Luis Fernandez also gave an update on the supply chain challenges the industry has experienced in previous years, like the lack of spare parts that has forced airlines to ground some aircraft and cancel flights.

He said the shortage is 'plateauing' - with the status depend a little bit on which part. But the flag carrier is now getting 'creative' in sourcing parts and supplies, so they dont expect significant disruptions.