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Konangrit
Joined: 27 Nov 2007
Posts: 81
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 Posted: Wed Apr 16, 2008 5:15 am Post subject: "PAL Express", New domestic LCC from Philippine Ai |
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| Quote: | Philippine Airlines sets up budget unit
6 hours ago
MANILA (AFP) — Philippine Airlines said Tuesday it has set up a low-cost unit, PAL Express to do battle with rival budget carriers and boost the national flag carrier's profits.
PAL Express is to fly to Philippine islands with small airports from May 5 with a fleet of turbo-propeller aircraft, said Jaime Bautista, president of parent firm PAL.
The budget unit is expected to carry around a million passengers each year.
"At full operation, we project that profits will increase by around 300 million pesos (7.2 million dollars) while revenue should be about one billion pesos," Bautista told a news conference.
PAL Express will acquire the turbo-prop operation of a PAL affiliate, Air Philippines.
Last week, PAL announced the purchase of three Q300 and six Q400 aircraft manufactured by Bombardier Aerospace of Canada, valued at 150 million US dollars based on list prices.
Two Q300s have already arrived and three more will be arriving in the first week of May while one Q400 is due a week after that, Bautista said.
"PAL Express is a separate unit of PAL that will not directly compete with Air Philippines because PAL Express will be mostly present in areas where Air Philippines is not," Bautista said.
PAL booked revenue of 1.4 billion pesos in the year to March, up 17 percent from its previous fiscal year, Bautista said.
He said net profit dropped due to higher fuel costs but did not provide figures.
PAL is 85 percent-owned by listed company PAL Holdings Inc which is majority owned by tycoon Lucio Tan, who is listed by Forbes Magazine as the wealthiest man in the Philippines with a net worth of 1.5 billion dollars in 2007. |
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This must be in response to Cebu Pacific, who have taken massive market share away from PAL. It also shows I was wrong to think plans for new LCCs would be put on hold following recent developments.
Last edited by Konangrit on Wed Apr 16, 2008 10:43 am; edited 1 time in total |
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attitudetravel
Joined: 15 Nov 2007
Posts: 301
Location: London, UK
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| Posted: Wed Apr 16, 2008 8:12 am Post subject: |
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Heh 
Well, I'm sure you're right with regard to some of the start-up projects at any rate, Konangrit.
This is some welcome news after the four major failures so far this month.
The last thing we need is more low cost carriers going bust and no new ones being developed to replace them. Without fierce competition, low cost airlines sometimes no longer feel the need to pass on the savings from their low costs to the passenger. (Can anyone spell GOL?)
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Alan Lansdowne
Editor, attitudetravel.com |
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Konangrit
Joined: 27 Nov 2007
Posts: 81
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| Posted: Wed Apr 16, 2008 11:16 am Post subject: |
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Yes, I'm sure a few will still be put on ice.
As for GOL, I was quoted a price of US$500 before tax for a one way flight from Santiago to Rio last year. This actually dropped to $160 after tax for a return, but their site wouldn't accept non-Brazilian Visa cards. I ended up flying LAN instead. You may guess I'm not a fan of GOL, and I haven't even flown with them.  Still, the $160 fare wasn't too bad if I had actually wanted to fly both legs and was able to pay for it. I believe they accept American Express if anyone plans to fly with them. |
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MHG
Joined: 23 Feb 2008
Posts: 15
Location: Schwetzingen (Heidelberg), Germany
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| Posted: Sun Apr 20, 2008 8:16 pm Post subject: |
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Well, the forming of PAL Express will also mean the disappearance of Air Philippines (2P) in the mid-term (including their B 737-200´s ...
We´ll see if thing will really go that way !
Next to this SEAIR and Asian Spirit will merge to form a new airline. But so far nobody (except for the owners) knows what their future model of OPS will be ... |
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attitudetravel
Joined: 15 Nov 2007
Posts: 301
Location: London, UK
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| Posted: Tue May 06, 2008 4:01 pm Post subject: |
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PAL Express launches...!
Let's see how its lowest fares measure up against those of Cebu Pacific and Air Philippines...
Manila Ninoy Aquino - Bacolod
Air Philippines : PHP 1869 one-way, including taxes (USD 45)
PAL Express : PHP 1925 one-way, including taxes (USD 46)
Cebu Pacific : PHP 2025 one-way, including taxes (USD 48)
Manila Ninoy Aquino - Cagayan de Oro
Air Philippines : PHP 2597 one-way, including taxes (USD 62)
PAL Express : PHP 2653 one-way, including taxes (USD 63)
Cebu Pacific : PHP 2731 one-way, including taxes (USD 65)
Manila Ninoy Aquino - Davao
Air Philippines : PHP 2597 one-way, including taxes (USD 62)
PAL Express : PHP 2653 one-way, including taxes (USD 63)
Cebu Pacific : PHP 2843 one-way, including taxes (USD 68)
Well, that's pretty consistent.
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Alan Lansdowne
Editor, attitudetravel.com |
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Konangrit
Joined: 27 Nov 2007
Posts: 81
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| Posted: Fri May 09, 2008 8:32 pm Post subject: |
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| Interestingly consistent. I think I'd choose to pay slightly more to fly Cebu Pacific. |
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