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08
May

PAL inks contract with SR Technics

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BusinessWorld Online

PHILIPPINE AIRLINES recently entered into a 12-year contract with Switzerland-based SR Technics for the servicing of its fleet of aircraft.

In a statement, the Lucio C. Tan-led carrier said it signed the Integrated Components Services agreement that covers the servicing of its 45 A321s and 15 A330-300s, which includes maintenance and component pooling.

The maintenance, repair and operations (MRO) service provider’s facility in Kuala Lumpur will provide the services for PAL.

“Safety remains the cornerstone of our operations. As such, we put premium in cultivating relationships with MRO experts to help ensure the reliability of our fleet,” PAL President and Chief Operating Officer Jaime J. Bautista was quoted as saying in a statement.

PAL and SR Technics also signed a five-year engine maintenance contract to support the airline’s entire fleet of CFM56-5C engines which will enable the Philippine carrier to reduce operating costs for engines, airframe and component maintenance.

Under the contract, PAL will use Beyond.Fleet.Services, a suite of products that extend the life of maturing fleets and reduces the day-to-day operating costs for engines, airframe and component maintenance. SR Technics and Aerfin will jointly manage these services.

“We are delighted to contribute to the success of Philippine Airlines, extending our partnership for another 12 years. SR Technics has been expanding its presence in Asia over the past few years, and we are committed to further develop our services in this fast-developing market,” SR Technics Chief Executive Officer Jeremy Remacha was quoted as saying.

PAL currently operates six A340s, but is looking to phase them out after signing a purchase agreement with Airbus for the firm order of six A350-900s, plus six options in April 2016, it said in its statement.

The flag carrier has earmarked around P700 million for its capital expenditures this year, almost similar to its budget last year to take delivery of two Boeing 777-ER -- PAL’s flagship aircraft for long-haul operations -- five Q400 Bombardier turboprops, and two Airbus A320-Neo.

PAL currently is in advanced discussions with an airline interested in taking a “less than 40%” stake in the company, with a deal seen within the first half of the year. The strategic investor is expected to help PAL better manage its fleet and reach five-star full service carrier status by 2020. PAL currently has a three-star rating.

The flag carrier serves at least 43 international destinations, including 20 regionally within East Asia, 10 in Australasia and the Pacific, seven in the Middle East, five in continental North America and one in Europe. -- I.C.C. Delavin