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ren0312
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Why does Airbus have a captive market in the Philippines?

Tue Jun 12, 2018 5:44 pm

If you look ay the Philippine market with respect to Cebu Pacific and PAL Airbus basically dominates the market with Boeing getting no orders since the late 90s, except for the B777s that PAL ordered, and only because Airbus had no comparable back then, but for the latest orders PAL decided to acquire A350s over 787s or 777xs.
 
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Momo1435
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Re: Why does Airbus have a captive market in the Philippines?

Tue Jun 12, 2018 6:08 pm

I don't think there's much to it. There are just 2 major airlines in the Philippines (+ AirAsia), both with a modest fleet size, especially considering the size of the population of the country. With just 2 airlines it's just coincidence that both airlines decided to mainly order Airbus planes for their fleets.

If the market should grow, with larger fleets for PAL and CEB and probably several more airlines there's a big chance that there will be more Boeing orders.
 
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Jayafe
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Re: Why does Airbus have a captive market in the Philippines?

Tue Jun 12, 2018 6:29 pm

Because it's a better product fitting better their needs.
 
PlanesNTrains
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Joined: Tue Feb 01, 2005 4:19 pm

Re: Why does Airbus have a captive market in the Philippines?

Tue Jun 12, 2018 6:32 pm

Jayafe wrote:
Because it's a better product fitting better their needs.


I’ve gotten really good at guessing what you’re going to say and then seeing I’m right. Lol. Kudos for your predictability.
 
carlokiii
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Joined: Sun Oct 04, 2015 11:03 am

Re: Why does Airbus have a captive market in the Philippines?

Tue Jun 12, 2018 7:16 pm

Both PR and 5J actually have very rational fleets, compared to other carriers in neighboring countries. It all boils down to which aircraft met their needs when they needed them.

5J chose the A319/A320 combo to replace the DC9/757 in the 2000s, just before their narrowbody fleet expanded exponentially. The need for a medium-haul and mid range plane came when the 787 was virtually impossible to get, and with its operational nature of fleet acquisition ie leasing brand new jets, the A330 was the only choice in 2012.

PR was a lot more complicated with their fleet choices up until recently, but essentially, Airbus won the narrowbody fleet renewal plan, again just before the massive increase in Philippine air traffic, while Boeing won the long-haul fleet renewal plan.

PR’s choice for A330 was largely similar to 5J’s, with the Airbus’ availability winning over the only other choice in 2012. The most recent RFP was to replace the ill-acquired A340s for midhaul/long range and the A359 won over the 789 (not the 777X) mostly thru commonality.

Z2 is AirAsia so that’s that on that.

PR and 5J tend to keep their planes for a long time, and they order new planes just as they need them, mostly top-ups. They don’t order planes many years in advance, so availability was always key to their choices.
 
airzona11
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Joined: Wed Dec 17, 2014 5:44 am

Re: Why does Airbus have a captive market in the Philippines?

Tue Jun 12, 2018 7:24 pm

It is not that diverse or big of a market. Those 777s are still a substantial part of PALs fleet.
 
LurveBus
Posts: 342
Joined: Wed Mar 21, 2007 8:21 pm

Re: Why does Airbus have a captive market in the Philippines?

Tue Jun 12, 2018 9:16 pm

Instead of repeating myself, I’ll just post what I’ve already written in an earlier thread


viewtopic.php?f=3&t=1389523&p=20265747&hilit=Philippines+airlines+deposits#p20265747

LurveBus wrote:
SQ789 wrote:
Many countries in Asia and nearly around the world had already flown Boeing 737NG/MAX lately. The largest customer of the Boeing 737 is Southwest Airlines of USA. Philippines is one of the biggest country in the world, but the airline from these countries PAL, Cebu Pacific etc don't have a Boeing 737 NG/MAX order instead they order A320's jet. The last 737 in the Philippines was a 737-400 which retires back in 2006. Is the reason why these airline from the Philippines only order A320s rather than 737NG/MAX because of better price on the A320 than the 737s?


Because Boeing kept losing RFPs.

In the early 2000s, when PAL was still in receivership with bad credit, PAL was asking Boeing if they could convert their 747 deposits and use them towards 737NGs. Boeing said no. Airbus offered favorable terms. (To be fair, in the future, when the RFP was 77W vs A346, Boeing finally allowed conversion just to deny orders for the A346)

Also in the early 2000s, when Cebu Pacific felt like it was finally ready to replace its DC-9s, Boeing would only offer their 717, but Airbus gave a great deal on the A319, which eventually triggered their transformation into an LCC and made them the huge company that they are today.

When PAL was under SMC ownership, they clearly stated a preference for Boeing aircraft and yet they ordered over 50 Airbus aircraft and just a top-up order for two 77Ws.

And when PAL changed ownership again, Airbus was very flexible and allowed for the glut orders of A321s and A330s to be converted to A321NEOs for later deliveries.

Airbus has been very good to airlines based in the Philippines. And it translates to the market share, which is heavily lopsided in favor of Airbus.
 
jupiter2
Posts: 1739
Joined: Tue Jan 02, 2001 11:30 am

Re: Why does Airbus have a captive market in the Philippines?

Tue Jun 12, 2018 10:00 pm

PlanesNTrains wrote:
Jayafe wrote:
Because it's a better product fitting better their needs.


I’ve gotten really good at guessing what you’re going to say and then seeing I’m right. Lol. Kudos for your predictability.


The cheques from the Bullshit Castle were more readily accepted in the Philippines :duck: :lol:

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