ASEAN KEY DESTINATIONS
Philippine Airlines poised to soar to profitability
“The company is already registering a profit,” Ang said at a press conference on Tuesday. He said the airline’s better performance was a result of “discipline,” leading to lower maintenance costs.
PAL’s parent firm PAL Holdings posted a 489.2-million peso US$11.5 million) profit in the April to June period of 2012, the first quarter of the company’s fiscal year. This was an improvement from the 475.1-million peso loss posted the year before.
PAL also implemented a cost-cutting programme last October that involved the outsourcing of 2,600 jobs to third-party providers. Ang declined to comment on whether the outsourcing programme, which is still being questioned in court, contributed to the company’s return to profitability.
At the press conference, the airline disclosed details for its expansion programme. The company signed a deal with European plane manufacturer Airbus for as many as 54 new planes in the first phase of a mul¬ti¬year ac¬qui¬si¬tion spree. The deal is worth $7 billion, based on published list prices for the planes.
Ang, who is also president of San Miguel Corp., said the company was still in negotiations to buy 46 more aircraft to bring its total plane purchases to 100.
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