Philippine Airlines defers deliveries, gets cash from owner

Philippine Airlines (PR, Manila Ninoy Aquino Int’l) has disclosed in its half-yearly financial report that it has deferred aircraft deliveries planned for 2020 and 2021 to 2022-2025, without disclosing further details. According to the ch-aviation fleets advanced module, the carrier has outstanding orders for thirteen A321-200Ns. It took delivery of one unit of the type, its second, in February 2020, when the devasting impact of the COVID-19 pandemic on the global aviation market was not yet clear. It was scheduled to take delivery of another A321neo by the end of 2020 with the remaining 12 due between 2021 and 2024. The airline has no other firm orders from the manufacturers. Besides the A321neo, Philippine Airlines took delivery of two DHC-8-Q400s in January and February 2020. The turboprops are operated by Air Philippines (2P, Manila Ninoy Aquino Int’l) under the PAL Express regional brand. The airline also said that its parent PAL Holdings received an additional capital injection from its majority owner, Lucio Tan, through his Buona Sorte Holdings, Inc. (BSHI) investment vehicle. During the first half of the year, BSHI injected PHP6.27 billion pesos (USD128.8 million) in deposits convertible into shares, on top of the PHP11.41 billion (USD234.4 million) it pumped into the carrier in 2019. The additional capital injection was needed to help the airline weather the catastrophic impact of the pandemic. During the first half of 2020, Philippine Airlines posted a net loss of PHP22.02 billion (USD452.4 million). Lucio Tan’s BSHI is recognised as the formal ultimate parent of PAL Holdings. It controls a 60% stake in Trustmark, which, in turns, owns a 76.92% stake in the airline holding.