PAL sets aside $450M for 2024 capex

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PAL sets aside $450M for 2024 capex
Philippine Airlines executives during a media briefing on April 2. From left to right: Roland Narciso, OIC-senior vice president - flight operations department; Alvin Miranda, vice president – marketing; Jason Siy, vice president - cargo business; Jose Enrique Perez De Tagle, vice president - corporate communications (outgoing); Judy Anne Tiongco, vice president - corporate communications (incoming); Aurea Patria Vidal, chief information officer; Carlos Luis Fernandez, OIC-executive vice president - general counsel; Stanley Ng, president & chief operating officer; Anna Isabel Bengzon, senior vice president & chief financial officer; Christoph Gaertner, vice president - planning and commercial group; Alvin Kendrich Limqueco, senior vice president & chief supply chain officer - supply chain management; Rabbi Vincent Ang, PAL Express president; Alex Featherstone, vice president - revenue management & commercial planning revenue management; Salvador Jr. Britanico, vice president - sales department. Photo from PAL.
  • Philippine Airlines has set aside $450 million for capital expenditures this year
  • 80% of the capex will be for ongoing refurbishment of the Airbus A321ceo aircraft and delivery payments for new aircraft purchased
  • 22 new aircraft are expected to be delivered from 2025 to 2029: nine are Airbus A350-1000 for use on the North America and other overseas routes, and 13 Airbus A321neos for regional routes to Asia and Australia

Philippine Airlines (PAL) has set aside approximately $450 million for capital expenditures this year, the bulk of which will be used for aircraft refurbishment and acquisition.

PAL chief financial officer Anna Isabel Bengzon in a media briefing on April 2 said 80% of capex will be used for ongoing refurbishment of the Airbus A321ceo aircraft as well as for delivery payments for the new aircraft purchased.

PAL senior vice president and general counsel Carlos Luis Fernandez in a presentation during the same briefing said the flag carrier is “progressively renewing” its fleet, with 22 new aircraft expected to be delivered from 2025 to 2029.

The airline ordered nine Airbus A350-1000 for use on its North America and other overseas routes. Delivery will be from 2025 until 2027.

For its regional routes to Asia and Australia, PAL will take in 13 Airbus A321neos that will be delivered from 2026 to 2029.

A Boeing 777-300ER will also be delivered in time for the carrier’s new direct Manila-Seattle service on October 2, 2024.

READ: PAL Manila-Seattle service starts on Oct 2

In addition, PAL is retrofitting the cabins of 18 A321ceos with new seats and new inflight entertainment systems. These aircraft will start to operate in the first half of 2025.

Meanwhile, Fernandez said PAL’s digital transformation initiatives this year will include bringing in more artificial intelligence and automation “to enhance our customer care while keeping the human touch and caring service that PAL has been known for.”

PAL has allied with software company Salesforce on a new customer relationship management tool that will give passengers more personalized service.

As part of its partnership with enterprise software company Ramco, PAL is implementing its maintenance information system to provide an end-to-end solution for planning and tracking PAL and PAL Express’ aircraft and engine maintenance, repair and overhaul requirements, including the warehouse management and procurement of spare parts inventory, rotables and other equipment.

PAL will also continue to upgrade the business lounge experience with the renovation of Mabuhay lounges at domestic airports around the country. It is also adding more new products and privileges for members of the Mabuhay Miles lifestyle program, with members now able to purchase ancillary products online for both domestic and international flights, and earn and burn points with cargo products.