Philippine Airlines Seeks Delay of Airbus Planes' Delivery

   By Cris Larano 
 

MANILA--Philippine Airlines Inc., or PAL, is seeking to delay the delivery of some aircraft it had earlier ordered from Airbus Industrie as the carrier reviews both its domestic and international routes, the airlines' listed parent company PAL Holdings Inc. (PAL.PH) said Friday.

PAL Holdings said the airline "has been negotiating the deferment and staggering that schedule of the delivery of the 38 Airbus 321." The completion of the delivery of the 38 planes were originally scheduled for 2020. PAL is now looking at a completion date of 2024.

In November, PAL president Jaime Bautista said the re-fleeting is under review, including the delivery of some 28 narrow-bodied Airbus jets scheduled for delivery between 2016 and 2022. PAL has 70 aircraft and will take delivery of 10 more Airbus jets in 2015.

PAL was assessing the deployment of the 15 Airbus A330s that was ordered when conglomerate San Miguel Corp. (SMC.PH) was still managing the airline. The aircraft were supposed to service Middle East routes but Philippine Airlines didn't get the slots and flight frequencies it hoped to secure in the region, leaving the planes under utilized.

PAL Holdings is optimistic Airbus will agree to delay the delivery of the planes without imposing any penalties on PAL.

Write to Cris Larano at [e-mail]; @CrisLaranoWSJ

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