Article by Doris C. Dumlao
The news talks about international airlines that want to invest and form partnerships with PAL. One of the foreign airlines that showed interest in having a partnership with them is All Nippon Airways (ANA), the biggest airline carrier in Japan in terms of passenger volume. The other foreign airline carrier that showed interest in the partnership with PAL is Emirates Airline, the largest airline carrier in the Middle East and one of the leading airline carriers globally. According to SMC’s president, Ramon Ang, it is possible to have a partnership with one of these airlines by the end of the year. They also started to have initial talks with both airlines but there was still no guarantee whether the partnership will be with All Nippon Airways or with the Emirates Airline.
It would be a good deal for PAL to team up with international carriers in order to be able to push through with their re fleeting program which would require them a big amount of investment. Partnership with these international carriers could help them get that extra boost they may need in order to become a competitive airline in the industry. According to Ramon Ang, it would require them at least another $1 Billon more to be able to provide quality service and be as competitive as other carriers. Partnership with such airline companies could also help PAL to be able to turn their losses into gains. Since fuel and maintenance cost are almost 60 percent of total costs, re fleeting program with brand new efficient planes could help them lessen their costs up to 20%, which can help them save almost $400 Million. Furthermore, SMC’s investment to PAL would also be a big help for the local airline company to cover all the expenses that they needed for the re fleeting of their aircrafts and other expenses that the company may incur in this new venture.
This plan of partnership may be a big step for PAL to become an international airline without the assurance of success, yet it is interesting to see that the company has high hopes for this to materialize. This may also enable us Filipinos to have high hopes of generating more income for the country and more importantly, to have access to the farther destinations without much inconveniences. PAL’s expansion in terms of its destinations would be very helpful also for Overseas Filipino Workers to travel in a much cheaper cost compared to other international airlines. Truly, this may give PAL more income in the long run and at the same time give Filipinos and other travelers an improved service that they could always remember.
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