Airphil to acquire 18 Airbus A320s
MANILA – The low-cost unit of Philippine Airlines (PAL) said it will acquire 18 narrow-bodied aircraft in two-and-a-half years to expand its domestic and regional routes.
Cesar Chiong, executive vice president and chief operating officer of Airphil Express (APX) told reporters that his company will be spending $250 million to acquire 18 brand new Airbus A320 planes for a period of two and a half years.
Chiong said the $250 million will be partly financed through internally generated funds, borrowings and the $50 million capital infusion from the Lucio Tan group.
At present, Airphil has a total of three Airbus A320 and expected another three Airbus A320 by end of 2010.
Chiong said 12 Airbus A320s are scheduled to be delivered next year and 2012.
“We are building up capacity... The idea is to cover the whole country,” Chiong said.
The low-cost airline plans to fly Iloilo, Davao, Puerto Princesa, Baguio, Marinduque, Zamboanga, Legazpi, Tagbilaran, among others.
Chiong said that Airphil would start flying in Singapore on October 27, the airline’s first regional flight.
Airphil is also eyeing flights to South Korea and in Bangkok, Thailand.
“We will give our competitor a good competition,” Domingo Chua, Airphil chairman, president and chief executive said, referring to Gokongwei-led Cebu Pacific.
Data from the Civil Aeronautics Board showed that Airphil carried 667,666 passengers from January to June, up by 162.62 percent compared to 254,244 passengers last year.
Philippine Airlines, on the other hand, carried 2.88 million passengers during the period.
Cebu Pacific remains the country’s leading domestic carrier with 4.09 million passengers from January to June this year, up 13.29 percent compared to last year.
Domestic passengers carried by Southeast Asian Airlines (SEAIR) reached 132,416 and Zest Airways, 616,058 passengers.
According to Centre for Asia Pacific Aviation, Cebu Pacific is the largest carrier in the country operating 220,092 seats per week or 37 percent as of August.
However, PAL and its subsidiary, Airphil, combined operate slightly more seats per week, with 223,482. PAL has a seat capacity of 27 percent and Airphil 8 percent.
Sought for comment, Candice Iyog, Cebu Pacific vice president for marketing and distribution said: “We welcome competition because it ultimately benefits the riding public.”
Cebu Pacific, set to go public next month, is expected to take delivery of 24 brand-new Airbus A320s until 2014.
“These are firm orders. So, the public can expect more trademark low fares from Cebu Pacific for sure. We are actually the largest operator of A320-family aircraft in the Philippines today,” Iyog said.
Cebu Pacific has a fleet of 10 A319s, 11 A320s and eight turbo-prop ATR 72 aircrafts.*PNA
