by Genivi Factao

Air Philippines will no longer pursue its expansion plans, as Philippine Airlines (PAL) will be taking new Bombardier turbo-prop aircraft within the year.

Jaime Bautista, president of PAL, said Air Philippines will not anymore acquire new aircraft which it had earlier planned to buy.

"It (Air Philippines’ acquisition) was stopped because we (PAL) will acquire all the Bombardiers," said Bautista.

PAL Express, a unit of PAL, will be servicing smaller airports in the domestic island points and is taking over some of the routes of Air Philippines.

PAL is expanding its fleet this year with new turbo props. Two Bombardier Q300s have already arrived and another one is coming in May. Six Q400s will start arriving by second week of May.

The Bombardier aircraft will be bought using internally generated funds or financing through banks and Export Development Corp., Bautista said.

PAL Express is scheduled to take off on May 5, 2008 with eight flights daily between Manila and Boracay. Services ramp up dramatically on May 19, when PAL Express’ Cebu hub operations commence with flights between Cebu and five points in Visayas and Mindanao.

Air Philippines used to fly the Cebu flights: Cebu -Davao, Cebu-Iloilo, Cebu- Bacolod, Cebu-General Santos. Now, it will just service the Manila Iloilo, Manila- Zamboanga, Manila-Dumaguete, Manila-Davao, Manila-Laoag and Manila- Tuguegarao routes.

Air Philippines started flying to Caticlan from Manila last December four times a day using Q300, but now PAL Express will take over this route.

Air Philippines earlier planned to acquire within the year six Q400, a 76-seat aircraft, to service the Romblon, Virac, Catanduanes routes. The aircraft has a list price of $20 million.

Bautista said PAL considers Air Philippines its sister company and even if they have a separate management and operations, the airlines benefit from the "synergy."

Air Philippines carries one million passengers in the Cebu routes, which PAL Express is targeting to have.

Bautista denied that PAL Express will be taking profitable routes, but said PAL will be taking previously served routes and that Air Philippines will be servicing new routes.

Air Philippines currently operates eight Boeing 737-200 jets serving a network of 12 points in the Philippines. It also operates regular chartered flights to points in Korea.