Air Philippines unveils expansion plan

(philstar.com) Updated September 30, 2010 12:34 PM

MANILA, Philippines (Xinhua) – Lucio Tan-led Air Philippines plans to open more new air routes by expanding its aircraft fleet to compete in the country's competitive aviation industry, the company said today.

Air Philippines CEO Cesar Chiong said the company plans to increase its Airbus A320 aircraft from just three to 18 by 2012 and add more domestic and regional routes.

The airline will fly to its first regional destination, Singapore, later this month, using its brand new 180-seater A320, which was delivered earlier this week.

"We're looking at destinations like the Republic of Korea, Bangkok and maybe Hong Kong," Chiong said.

Domestic routes like Vigan and Marinduque are also in the company's radar screen.

By the end of the year, Chiong said, the company expects to have six new A320s. Another six will arrive next year while the rest will come in 2012. Air Philippines' first two A320s given to it by sister company Philippine Airlines (PAL).

Aside from the three Airbus jets, Air Philippines also has eight turbo propeller planes used to fly on domestic routes.

A total of $250 million will be spent for the lease of the new aircraft.

Chiong said the company preferred to acquire A320 jets, which are the same planes used by its sister PAL, to keep expenses down since a fleet with just one type of airline is easier and cheaper to maintain.

Air Philippines is already the country's third largest airline, behind Gokongwei-led Cebu Pacific and Tan’s Philippine Airlines, at the end of the first half of the year after carrying 676,686 passengers.