Market Intelligence: South East Asia

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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Czech Republic Based F Air Launches Multi-Crew Pilot Licence Training Partnership with Asian Airline

One of Europe’s largest flight training organisations Czech Republic based F Air has announced its partnership with Vietnam’s largest low cost carrier Vietjet Air’s Ho Chi Minh City, Vietnam based airline owned aviation academy and full flight simulator training center Vietjet Aviation Academy (VJAA) to offer a Multi-crew Pilot License (MPL) training program

This program promises a seamless and efficient learning experience tailored for aspiring pilots destined for Vietjet Air. Advantages shared by VJAA include:

  • “Cost Savings: The MPL program offers cost savings compared to traditional Commercial Pilot License (CPL) programs.
  • Optimized Time and Curriculum: Training duration is reduced to 18 months (compared to 24 months for CPL programs). Optimized for Airbus A320 and A320Neo aircraft, predominant in major airlines in Vietnam and Asia.
  • Job Guarantee with Vietjet Air: Vietjet Air guarantees MPL graduates from VJAA employment with attractive income and benefits, ensuring a solid start to their pilot career.”

The duration of the MPL program is communicated as 18 months and will follow:

  • Phase 1. Air Transport Pilot Theory
    Duration: 6 months
    Location: Vietjet Aviation Academy – Vietnam
  • Phase 2. Core Flight Training
    Duration: 4 months
    Location: F Air Flight School – Czech Republic (Europe)
  • Phase 3. Airbus A320 Type Rating Training
    Duration: 5 months
    Location: Vietjet Aviation Academy – Vietnam
  • Phase 4. Line Flying Under Supervision
    Duration: 3 months
    Location: Vietjet Air – Vietnam

Source: F Air and Vietjet Aviation Academy

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Vietnamese Airline Academy Partners with European Flight School to Launch Multi-Crew Pilot License (MPL) Program

Ho Chi Minh City, Vietnam based airline owned aviation academy and full flight simulator training center Vietjet Aviation Academy (VJAA) introduces its Multi-crew Pilot License (MPL) training program in partnership with Czech Republic-based flight training organisation F Air.

This program promises a seamless and efficient learning experience tailored for aspiring pilots destined for Vietjet Air. Advantages shared by VJAA include:

  • “Cost Savings: The MPL program offers cost savings compared to traditional Commercial Pilot License (CPL) programs.
  • Optimized Time and Curriculum: Training duration is reduced to 18 months (compared to 24 months for CPL programs). Optimized for Airbus A320 and A320Neo aircraft, predominant in major airlines in Vietnam and Asia.
  • Job Guarantee with Vietjet Air: Vietjet Air guarantees MPL graduates from VJAA employment with attractive income and benefits, ensuring a solid start to their pilot career.”

The duration of the MPL program is communicated as 18 months.

Source: Vietjet Aviation Academy
Photo Credit: Vietjet Aviation Academy

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Southeast Asian Pilot Simulator Training Center BAA Training Vietnam Receives 3rd Full Flight Simulator – B737NG

Ho Chi Minh City, Vietnam based full flight simulator training center BAA Training Vietnam is pleased to announce the arrival of its 3rd Full Flight Simulator – a Boeing B737 NG.

This marks a significant step forward as BAA Training Vietnam expands its training capabilities from the existing Airbus A320 full flight simulator infrastructure that it has. The FFS B737 NG FFS will commence operations in May 2024, complementing the existing lineup of simulators.

BAA Training Vietnam is a branch of global pilot training group BAA Training, a member of Avia Solutions Group, the largest aerospace business group from Central & Eastern Europe providing aviation services and solutions worldwide.

Source: BAA Training Vietnam
Photo Credit: BAA Training Vietnam

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Philippines-based Pilot Simulator Training Center Onboards New Batch of 14 Trainees in March 2024

Clark based full flight simulator training center CAE Philippines is delighted to onboard their 14 new trainees for obtaining their A320 and ATR72-600 Type Rating course.

CAE Philippines, based in Pampanga, Philippines, is a joint venture between Cebu Pacific Air and CAE, formerly known as PAAT. Their Training Center has four CAE-built Level D simulators – (3) Airbus A320 full-flight simulators (FFS) and (1) ATR 72-600 FFS.

Source: CAE Philippines
Photo Credit: CAE Philippines

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Global Aviation Training Solution Provider CAE Shares Whitepaper on Technician Extended Reality Training

In a recent white paper publication, global pilot and aircraft maintenance training provider CAE has projected a significant demand for skilled aircraft maintenance, repair, and overhaul (MRO) technicians over the next decade. The company estimates a requirement for approximately 402,000 technicians, prompting a call for innovative training solutions to meet this demand.

Partnering with Xennial, CAE proposes a pioneering approach to training utilizing extended reality (XR) technology. This includes augmented reality (AR) and virtual reality (VR), offering a blend of physical and digital elements to enhance the learning experience.

CAE’s recent trial implementation of XR technology in technician training programs for Gulfstream G500/600 and G650 aircraft has shown promising results. Douglas Fajardo, CEO of Xennial, highlights the capability to create a full digital twin of an aircraft, revolutionizing training methodologies saying, “Virtual Reality has transformed the landscape of aircraft technician training by offering a realistic and hands-on learning experience. For example, we have the ability to build a full digital twin of a Gulfstream aircraft at this point, with all of the features of its physical twin. VR can now empower technicians to familiarize themselves with aircraft systems, components, and procedures in a simulated immersive environment, fostering a new era of competency, adaptability, and safety in the aviation maintenance industry.”

The deployment of VR hardware, such as headsets and hand-tracking technology, is set to transform technician training, with AI integration further expanding its potential. Alexandre Prevost, CAE’s division president for business aviation and helicopter training, emphasizes the value of VR in mitigating risks associated with traditional training methods, “Aviation is one of the industries where the adoption of emerging technologies is accelerating. Virtual Reality, especially when it comes to aircraft technician training, is proving to be a high value solution. One of the main reasons VR is used in maintenance training is to lower the risks associated with traditional training methods.”

VR training offers several advantages over conventional approaches, including reduced dependency on physical equipment, shorter aircraft downtime, adaptability to new aircraft models, and cost-effectiveness for repetitive practice.

Citing a 2020 PricewaterhouseCoopers study, CAE asserts that VR training can be completed four times faster than classroom training and one-third quicker than e-learning, while also enhancing trainees’ confidence and emotional connection to the content.

In a move to enhance pilot training realism, CAE has integrated Epic Games’ Unreal Engine 3D visuals into its full flight simulators. The Prodigy image generator with Unreal Engine is set to become standard on new and existing CAE level-D simulators, starting with the Airbus A320 simulator.

The whitepaper can be found here.

Source: CAE
Photo Credit: CAE

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