Archives: Market Intelligences

Southeast Airline Plans to Invest $450 Million Into Capex for Fleet Expansion

Philippine Airlines (PAL) is gearing up for significant expansion in 2024, with plans to allocate a hefty $450 million, or over P25 billion, for capital expenditures (capex). This substantial investment is aimed at fleet expansion and meeting the rising demand in the market, as revealed by Anna Isabel V. Bengzon, PAL’s Senior Vice-President and Chief Financial Officer.

The capex includes various initiatives such as refurbishing the A321CEOs, aircraft maintenance and upgrades, and the acquisition of new aircraft. PAL’s capex for 2024 surpasses that of the previous year, which was below $170 million, indicating the company’s robust growth trajectory.

Funding for the 2024 spending will be sourced from internally generated funds and debt.

PAL intends to purchase 22 aircraft to bolster its fleet between 2025 and 2029, with plans for nine A350-1000s and 13 A321 New Engine Options (NEOs), enabling nonstop flights to North America, other international destinations, and regional routes in Asia and Australia.

In line with its expansion strategy, PAL is set to inaugurate nonstop Manila-Seattle flights thrice a week commencing October 2. Seattle will become PAL’s sixth destination in the US and eighth in North America, enhancing its extensive network.

PAL President and Chief Operating Officer Stanley K. Ng expressed the airline’s anticipation for the Seattle route, noting the significant influx of US tourists to the Philippines in recent years, “We have been looking into Seattle for a long time already, even before the pandemic. It is always on our radar,” said Ng.

Despite focusing on promising markets like Seattle, PAL remains committed to exploring additional Asian and local destinations. The company is eyeing the revival of previous routes, including Cebu-Osaka flights and operations to Sapporo in Japan, alongside aspirations to resume European flights.

PAL’s ambitious expansion plans are underpinned by its robust financial performance in 2023, where PAL Holdings, Inc. witnessed a notable increase in attributable net income to P16.81 billion. Passenger revenue surged by 37%, reaching P160 billion, driven by heightened passenger volume and route expansions.

Looking ahead, PAL anticipates continued growth in 2024, although at a more moderate pace compared to the exceptional growth seen in recent years. Ms. Bengzon highlighted an expected capacity increase of 10-12%, signaling a shift towards more sustainable growth trajectories.

Source: Philippine Airlines
Photo Credit: Philippine Airlines (shown as meta image)

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Canada-based Pilot Training Organisation Select Aviation College Partners with 500 Outaouais Squadron

Canada-based flight training organisation Select Aviation College revealed its partnership with 500 Outaouais Squadron in commemoration of the 100th anniversary of the Royal Canadian Air Force.

“We also take this opportunity to announce our partnership with 500 Outaouais Squadron to mark the 100th anniversary of the Royal Canadian Air Force! See you on May 11 for the first Aviation Day in the Outaouais!” shared Select Aviation College.

Earlier this year representatives from Canadian operator Porter Airlines made a special visit to Canada-based flight school Select Aviation College to discuss the airlines pilot pathway program. Sunny Grewal and Harrison Turner from Porter engaged with students, sharing insights about the airline’s Destination Porter mentoring program.

“We are thrilled to announce that Select Aviation College has been qualified for Porter Airline’s Destination Porter pilot mentorship program. Destination Porter is a mentorship program that offers young pilots who graduate from recognized schools the opportunity to gain insights and mentorship from experienced Porter Airline pilots. Enrolled students will also benefit from preferential consideration for employment opportunities with Porter Airlines upon graduation. We are extremely pleased to provide our students with exposure to an established airline and offer them a competitive advantage in their career paths.” shared Select Aviation College.

Source: Select Aviation College
Photo Credit: Select Aviation College

 

 

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CAE Announces Defense and Security Business Unit Leadership Team Appointments in 2024

Global pilot training solution provider CAE announced changes to its Defense & Security business unit’s leadership team. Jason Goodfriend has been appointed Interim Group President, Defense & Security, effective immediately.

Mr. Goodfriend replaces Daniel Gelston, who will remain at CAE in a supporting capacity through May 2024. CAE thanks Mr. Gelston for his vision, leadership and many accomplishments and wishes him well in his future endeavours.

Mr. Goodfriend, based in Chantilly, Virginia, joined CAE in January 2023 as Chief Operating Officer (COO) for CAE’s Defense & Security business unit. CAE created the COO position at the Defense & Security business unit level as part of a series of organizational and structural changes intended to improve execution and performance. Since then, Mr. Goodfriend has been responsible for managing strategic, operational, and tactical efforts to deliver effective and efficient operations.

Mr. Goodfriend came to CAE with over 20 years of experience in the government and private sectors leading and managing organizations and P&L execution for defence companies including BAE Systems Inc., and Akima, LLC. Mr. Goodfriend also brings valuable insight into our defence customers as a distinguished U.S. Army veteran.

A search is currently being conducted for a permanent Group President among several highly qualified external and internal candidates with proven track-records of execution in the defence sector to lead and accelerate the transformation of CAE’s Defense & Security business.

CAE also announced the recent appointment of Srini Dixit as Chief Financial Officer (CFO), Defense & Security. Mr. Dixit has an extensive background that includes structural engineering, international business management, oversight of multi-billion-dollar strategic business units, and leadership of large finance teams. He joined CAE in March 2024 from RTX Corporation where he served as Vice President Finance and CFO of RTX’s Raytheon Air Power strategic business. Before that, Mr. Dixit held various defence unit financial leadership positions for over a decade at Lockheed Martin Corporation.

About CAE
At CAE, we equip people in critical roles with the expertise and solutions to create a safer world. As a technology company, we digitalize the physical world, deploying software-based simulation training and critical operations support solutions. Above all else, we empower pilots, cabin crew, airlines, and defence and security forces to perform at their best every day and when the stakes are the highest. Around the globe, we’re everywhere customers need us to be with more than 13,000 employees in approximately 250 sites and training locations in over 40 countries. CAE represents more than 75 years of industry firsts—the highest-fidelity flight and mission simulators as well as training programs powered by digital technologies. We embed sustainability in everything we do. Today and tomorrow, we’ll make sure our customers are ready for the moments that matter.

Source: CAE

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