PR/5J/2P/PQ | Philippine-Based Carriers

[the glimpser]

Photo of PAL's inaugural flight to Toronto..

Originally Posted by IsaganiZenze

Inaugural Flight - PR118 - MNL to YYZ

By YYZTC hosted on Flickr



"Philippine Airlines | RP-C7775 | Boeing 777-3F6/ER

Inaugural flight of Philippine Airlines arriving direct from MNL as "PR118" at 17h16 hours on 30/Nov taxiing to gate after landing on runway 5.They will now serve YYZ direct 3x weekly."

[TedToToe]

I sincerely hope that PAL can make this route work. The demand is certainly there but can sufficient yields be achieved to pay for all that fuel?

[fieldsofdreams]

Originally Posted by TedToToe

I sincerely hope that PAL can make this route work. The demand is certainly there but can sufficient yields be achieved to pay for all that fuel?

Sure. How can you explain booked out tickets for the 3x weekly service... and from March next year, the service will be upped to daily, if not 2x daily soon?

[TedToToe]

Originally Posted by fieldsofdreams

Sure. How can you explain booked out tickets for the 3x weekly service... and from March next year, the service will be upped to daily, if not 2x daily soon?

I kind of covered this by saying 'the demand is certainly there' but much of that demand will be from price sensitive balikbayans. So my scepticism is one of yields or sufficient revenue per seat.

[the glimpser]

Govt issues air passenger Bill of Rights

Originally Posted by HER

Govt issues air passenger Bill of Rights
By: Darwin G. Amojelar, InterAksyon.com
December 10, 2012 5:33 PM



MANILA - The Aquino administration on Monday issued the final version of an order protecting passengers from abuse by airline companies.

Transport Secretary Joseph Emilio Abaya and Trade Secretary Gregory Domingo have signed the final Bill of Rights for Air Passengers and Carrier Obligations, which covers denial of boarding, flight delay, flight cancellation, off-loading of baggage, overbooking, advertisement of promotional and regular fares, re-fundability and re-bookability of fares, death and bodily injury, and express lane for persons with disabilities and senior citizens.

The order covers both local and foreign carriers, and will take effect 10 days after its publication in a newspaper on December 11.

According to AO 1, no passenger may be denied boarding, unless there is a legal and valid cause such as, but not limited to, immigration issues, safety and security, health concerns, non-appearance at the boarding gate at the appointed boarding time or government requisition of space.

While it is an accepted practice for an air carrier to overbook its flights, any expense, consequence, or inconvenience on passengers must be borne out by the airline.

If the flight is overbooked, the airline should announce that the flight is overbooked and that it is looking for volunteers willing to give up their seats in exchange for compensation.

"The airlines shall provide the interested passengers or volunteers a list of amenities and offers, which they can choose from, which list of amenities shall always include the option to be given priority booking in the next flight with available space or to be endorsed to another air carrier flight with available space or to be endorsed to another air carrier upon payment of any fare difference and provided that space and other circumstances permit such as accommodation at the option of the passenger and/or a cash incentive," the order read.

In case the number of volunteers is not enough to resolve the overbooking, the airline should increase the compensation package.

For cancelled flights, the airline should notify passengers using public announcement, written/published notice and flight status update service through text messaging.

The passengers should also be given sufficient meals or refreshments, hotel accommodation, transportation from the airport to hotel, free phone calls, texts, emails or first aid, if necessary.

The ticket of the passengers should be reimbursed, endorsed to other carriers without paying any fare difference or rebooked without additional charge.

In case the airline cancels the flight because of force majeure, safety and security reasons as certified by Civil Aviation Authority of the Philippines, a passenger shall have the right to be reimbursed for the full value of the fare.

According to AO 1, the airline should transport the off-loaded baggage in the next available flight, deliver the same to the passenger either personally or to their residence and tender an amount of P2,000 for every 24 hours of late delivery, as compensation for the inconvenience.

The government also requires compensation amounting to $75,000 inclusive of legal fees and costs for international flights, in case of death or bodily injury to a passenger.

For domestic flights, the equivalent amount in pesos should be provided.

[fieldsofdreams]

Originally Posted by TedToToe

I kind of covered this by saying 'the demand is certainly there' but much of that demand will be from price sensitive balikbayans. So my scepticism is one of yields or sufficient revenue per seat.

True... but how can PR sustain a service by not just catering to the Balikbayan market and opening up to potential business passengers? I mean, business passengers bring a lot more revenue per seat to PAL because they pay more for the premium offerings on board.

[TedToToe]

Originally Posted by fieldsofdreams

True... but how can PR sustain a service by not just catering to the Balikbayan market and opening up to potential business passengers? I mean, business passengers bring a lot more revenue per seat to PAL because they pay more for the premium offerings on board.

Absolutely, and I do hope that they can make it work.
On a side note, I have four flights booked with them over new year, including a HKG sector which is scheduled as a 77W.

[eladkram29]

PAL's Inaugural Flight to Toronto Video:

http://www.youtube.com/watch?v=glsP-alU0N0&feature=plcp

[josefarrugia]

Philippine Airlines will be flying to Europe through Turkey by mid next year, 2013. Due to EU restrictions imposed on Philippine Airlines, PAL can't directly to Europe as of the moment. Thus, plans are in motion for Istanbul to be the first European destination PAL will be flying to. This will be a great stepping stone for other European Destinations.



Furthermore, Philippine Airlines will be flying to Saudi Arabia, UAE and Kuwait by May 2013. There are 21 flights planned per week to Saudia Arabia and 8 flights to Kuwait.

Full Article can be found here

[TedToToe]

That is great news. It is only a matter of time before the EU ban is lifted. I just hope they get LHR slots; much better for filling those business class seats.

[fieldsofdreams]

Originally Posted by TedToToe

That is great news. It is only a matter of time before the EU ban is lifted. I just hope they get LHR slots; much better for filling those business class seats.

Indeed, thanks to the UK-PH bilateral deal signed lately that paved the way to resuming PR flights again to London after several years of suspension. Perhaps BA can return the favor too by resuming services to MNL, if not nonstop.

[TedToToe]

Previously BA operated MNL via HKG but this does not represent the best utilisation of a 747 or 777. Maybe, we could see them operate the route direct with 787's.

[fieldsofdreams]

Originally Posted by TedToToe

Previously BA operated MNL via HKG but this does not represent the best utilisation of a 747 or 777. Maybe, we could see them operate the route direct with 787's.

There's a similar scenario right now with KLM operating its MNL-AMS route via Taipei with a B772 or B77W daily. I think the Philippine government should improve its aviation safety guidelines so that more long-haul routes can be tapped with greater ease.

[the glimpser]

God news to all foreign carriers!

Senate removes taxes on foreign airlines

MANILA, Philippines - Voting 16-0, the Senate on Wednesday approved on third and final reading a bill that scraps taxes that have hampered the operations of international carriers.

Senator Franklin Drilon, acting chairman of the Ways and Means Committee, said the approval of Senate Bill 3343 will establish the country as a tourism hub and elevate its status as a viable gateway to Asian neighbors.

Under SB 3343, the gross Philippine billings tax (GPBT) will be waived provided that the country of origin of a foreign carrier grants the same exemption to Philippine airlines.

The bill also exempts foreign airlines from the common carriers tax (CCT) and the value added tax. At present, international carriers are required to pay the 2.5 percent GPBT and 3 percent CCT.

http://www.interaksyon.com/business/...reign-airlines

[fieldsofdreams]

Woohoo! Finally! Alleluia! I have been praying for that for many, many, many months and years, and at last, the GPBT and CCT have been "removed"! Way to go! Mind if you can share that too on the Philippine Airlines' "New" Airport thread too since it could be the main airport for Manila in the future?

[Chrisvenz]

About Philippine Airlines & AirPhil Express




image hosted on flickr

A Proud Heritage, A Promising Future

Philippine Airlines (PAL) began life with a noble mission: to serve as a partner in nation-building. With this in mind, PAL took to the skies on 15 March 1941, using a Beech Model 18 aircraft amid the specter of a global war. It became Asia's first airline.

PAL through the years

Since then, PAL deeply involved itself in shaping the course of historic events. With its every takeoff and touchdown, PAL planted the seed of growth.

PAL has become one of the most respected airlines around the world with a young and modern fleet of aircraft and a route network that spans 31 foreign cities and 29 domestic points.

Service excellence

PAL's excellent service has won the hearts of travelers worldwide. This trademark has distinguished it from the pack and has stood guard in an environment that has grown more competitive by the day.

But PAL does not sit on its laurels. Realizing that it owes its success to its loyal passengers, PAL launched a campaign called "Call for excellence" to serve its market better.

Embracing e-business

PAL began embracing electronic commerce with the introduction of its Online Booking service that accepts ticket purchases and credit card payments for all flights. A new, improved website was also launched to serve the customers' needs more quickly and efficiently.

These will surely win the battles ahead for PAL.

Air Philippines Corporation, now operating as Airphil Express (formerly Air Philippines), is a low-cost airline based in Pasay City, in the Philippines. It operates both domestic and international scheduled services from Manila, Cebu, Davao and Zamboanga. The airline was re-branded for a number of times, first as Air Philippines, then as PAL Express. Due to financial losses, Air Philippines ceased operations for a short while until it was acquired by investors from the Lucio Tan group. After the acquisition, the airline was re-launched as PAL Express, to operate some routes and slot assignments of its sister company Philippine Airlines until the management decided to re-brand the carrier as a budget airline now known as Airphil Express.

The new Airphil Express is Philippine Airlines' answer to Cebu Pacific Air's dominance on the low cost travel market in the Philippines which significantly shrunk its market share and relegated it to the no. 2 spot from its dominant no. 1 position since inception. It allowed PAL to focus on the premium market where it does not have competition in the domestic Philippine market. Airphil Express gained significant increase in passengers following its launch as a low-cost carrier competing head on with Cebu Pacific Air. The airline is currently on fleet acquisition mode[1] to support its planned domestic and international route expansion plan. Airphil Express currently holds the no. 3 position among Philippine-based airlines with 19% market share.

[Chrisvenz]

San Miguel Buys into PAL
To infuse US $1 Billion for Fleet Expansion

Food and beverage giant San Miguel Corporation has agreed to buy shares of PAL Holdings and finance the refleeting and modernization program of Philippine Airlines. PAL Holdings directly owns 81.57% of Philippine Airlines.

The deal includes budget carrier Airphil Express, its low cost subsidiary.

San Miguel offered $500 million in cash and another $500 million in equity infusion in exchange for a 49-percent stake in both PAL and Airphil, but secures management control of the two airlines.

A disclosure to the Philippine Stock Exchange said San Miguel Corporation would increase the capitalization of PAL and its low cost subsidiary to buy new aircraft.

PAL Holdings Chief Finance Officer Susan Lee confirmed to the stock exchange investments by San Miguel in PAL Holdings.

The plan calls for the purchase of 12 medium sized long-ranged planes either from Airbus or Boeing, with Airline engineers taking a closer look and evaluation at the Airbus 350-900 planes which order is scheduled to be announced before the end of the year. First aircraft delivery is scheduled to take place in March 2016.

"Wide-bodied aircraft are needed. You need to pay delivery fees. That’s where the cash is needed,” Airline President Jaime Bautista said.

San Miguel is currently holding due diligence audit with the airline which is expected to be finish next week. Joint announcement is expected on the next General Assembly Meeting in April.

As a result of San Miguel investment, Lucio Tan would remain chairman of PAL with San Miguel President Ramon Ang, as its Chief Executive Officer. PAL president Jaime Bautista will remain Chief Operating Officer.

PAL Holdings operates a fleet of 51 aircraft and 22 on orders as of March 2011.

[Chrisvenz]

PAL to fly Bali!
Starts A320 flight by April

Flag carrier Philippine Airlines (PAL) will start offering direct flights to Bali, Indonesia in March, President Jaime Bautista said at the opening of the 19th Travel Tour Expo 2012 recently.

“We are looking at the possibility of flying to Bali...If we get all the permits within the month, we should be able to start flying end of March or early April. We will only fly three times a week because that is part of developing the market.”

An Airbus 320 aircraft will be used for the flights that will land directly at the Bali Ngurah Rai International Airport from Manila. This will be the second airport in Indonesia where PAL is flying into whose flight is code-shared with Garuda Airlines. The airline currently offers daily flights to Jakarta.

Bautista said offering direct flights to Bali will enable the airline to maximize the use of its planes.

“There is clamor for it already. It will allow us to increase utilization of our planes because when we fly to Bali, we will fly at night because that is the time when our planes are parked in Manila. That will help us raise our revenues,” he said.

The airline is also on the final planning stage of connecting Davao to Singapore and Hong Kong on a midnight run also on the same A320 aircraft.

The Travel Tour Expo is an annual travel and tourism event organized by the Philippine Travel Agencies Association (PTAA) and the Department of Tourism (DOT) to showcase domestic and international products and services in the tourism sector.

[Chrisvenz]

300-M passengers for 70 years



From a full load of five passengers on its maiden flight to Baguio back in 1941, Philippine Airlines (PAL) as of April 14, 2012, has carried more than 300 million passengers over the last seven decades – a feat unequalled by any other local carrier.

From the few brave Filipinos who ventured trying the then novel mode of air transport, today's regular air travelers – overseas Filipino workers, vacationing families, tourists and businessmen – still prefer
flying PAL, if not for the flag carrier's modern fleet of airplanes but especially for the warm and distinctively Filipino cabin service.

With number of passengers projected to increase by 12%, PAL expects to breach the 10-million-passenger mark by end of 2012. Passenger load factor is likewise expected to improve to about 80% for 2012.

With such bright prospects, the airline recently unveiled a new marketing tact that aims to make passengers fall in love with PAL all over again.

"Love, Your PAL" is meant to show PAL's gratitude to its 300 million passengers as well as an invitation for other air travelers, particularly foreigners, to renew ties with the national flag carrier which has embodied the best that the Philippines can offer to the world.

"Love, Your PAL" will be PAL's signature for all domestic and outbound communications, providing the emotional message to make Filipinos fall in love with PAL again. The campaign was launched during PAL's 71st founding anniversary last month.

For the past 70 years, PAL has been the biggest carrier for inbound tourists. Through the new marketing campaign, PAL wants foreign travelers/visitors to fly only the flag carrier because PAL is the
showcase of the Philippines.

The airline is the only Philippine-based carrier that flies regularly to North America, Australia and India and offers the most convenient schedules for major regional destinations such as Japan, China, Korea
and Southeast Asia.

PAL has flown over 300 million passengers safely and comfortably in all routes, and hopes to excite the market with new programs that will strengthen loyalty of its passengers.

As opening salvo of the "Love, Your PAL" marketing campaign, an anniversary sales promo offered big discounts on the purchase of second tickets to selected destinations.

Forthcoming are PAL's involvement in the Philippine premier of the Broadway musical Phantom of the Opera as well as in the Hollywood commercial screening of the first Filipino full-length film, The Road
by GMA Films.

At the PAL anniversary, six of the airline's best flight stewardesses who epitomize the unique beauty and charm of the Filipina – called the PAL Charisma Girls – were introduced. The Charisma Girls, showing the distinct character of PAL, is a take off from the highly successful 1986 PAL advertising campaign that showcased the "Beauty of the Philippines Shining Through".

[Chrisvenz]

Higher flight altitude for PAL this time
GOTCHA
By Jarius Bondoc



From food and drinks, giant San Miguel Corp. has branched out to heavy industries. Since 2007 the conglomerate plunked $5 billion into oil, power, mining, airports, toll roads, and telecoms. Its 24 acquisitions and mergers, notably in Meralco and of Petron, have all been profitable.

The latest is arguably the toughest: SMC’s 49-percent buy into tottering Philippine Airlines. Globally airline commerce is being choked by a dizzying cocktail of US-European financial crises, Arab political tumult, high fuel rates, currency shakiness, and drop in demand for expensive seats. A recent Economist report has it that the US airline industry, the world’s most advanced, is the least lucrative. Giant carriers have taken off with bang, dropped in operating altitude, and saved from crash only by cutbacks and takeovers. Historically since its start, the US sector has lost more than $33 billion.

PAL’s deficits have also been in the multibillions — P1.5 billion in the last quarter of 2011 alone. But bad news doesn’t daunt, only excite, SMC president Ramon S. Ang. Taking over yesterday as PAL president-COO, Ang gives a cockpit’s view of the direction to which he will pilot the company.

First, on PAL’s and most other airlines’ biggest headaches:

• Fuel costs: “Do you think anyone can be better than us in plotting the rise and fall of oil prices and supplies?” When Ang engineered SMC’s 2008 buyout of Petron, the country’s top oil refiner-distributor was $350 million in the red; he has since turned it around. Weeks ago he oversaw SMC’s purchase of 65 percent of Exxon-Mobil of Malaysia. Information (on fuel price spikes and wastage) is power, but more so is corporate synergy, which he foresees among Petron, Exxon-Mobil, and PAL.

• Labor unrest: PAL’s ground crew union, emasculated by the spinoff of certain departments, has announced plans to dialogue with the new boss from SMC. Flight attendants, downcast due to a Supreme Court flip-flop against them, have promised to cooperate. Ang aims to spur them from low morale to high productivity — for their own pay and retirement benefit. Once a pilot rated for several aircraft types, Ang also knows the thinking of PAL plight crews.

• New routes: Flights to more US cities and re-openings in Europe will depend a lot on the Civil Aviation Authority of the Philippines. The state agency needs to get the Philippines’ safety rating upgraded to Category-1 by the US Federal Aviation Administration. To follow suit would be the European Union counterpart, and then the rest of the International Civil Aviation Organization. PAL is largely out of the picture, as the government acquires new flight navigation and airport safety equipment. Still the airline is not taking any chances. Lucio Tan, PAL’s old (and remaining 51-percent owner), had thrown in $2 million to computerize the CAAP, and lent his staff as check pilots. Ang will continue to pitch in: “I trust the government to do its job.”

At the core of Ang’s takeoff plan is PAL’s re-fleeting with 80 (!) new aircraft. Scratch off the 600 to 700-seater super jumbos, only the 400 to 450-seater wide-bodies better suited for Philippine airports. Short-haul flights will be single class: economy; long hauls, two or three classes. Whichever, Ang promises full in-flight services.

How will PAL finance the 80-aircraft purchase? SMC already has plunked in $500 million for PAL’s 49-percent stake, with management control and budget carrier-sister Air Philippines thrown in. SMC is to infuse $250 million more within two months, to be matched by Tan with another $250 million. “You will see our new jumbos within a year,” Ang says of the first rollout from the total $1 billion.

Fares are largely dictated by competition and fuel costs. Asian airlines have been experiencing a drop in purchases of premium seats and cargo space. Ang sees the solution simply in improving ground and in-flight personnel and services. Like most passengers, he hates long queues to buy or refund tickets, and to check in for flights. His solution: enlist the help of SMC subsidiaries. “Plane tickets can be bought from any of Petron’s 3,000 filling stations or Bank of Commerce branches,” Ang says. “That will bring down fares by six percent. You can also pay the terminal fees there.” PAL finally would also have on-line check-in. The new setup would allow passengers to go to the airport only an hour before flight.

Ang also knows the sad state of most airports (SMC is building a state-of-the-art international airfield for Boracay). For convenience, he is contemplating giving complimentary bottled water, courtesy of Magnolia, for passengers in airports that cruelly do not have drinking fountains. Perhaps, even corned beef, meat loaf or chicken nuggets in pandesal, courtesy of SMC Purefoods. Being finicky as well about toilets and in-flight entertainment, expect improvements in those areas as well.

All this, Ang aims to accomplish by bringing with him only a few SMC advisers to help in PAL. “I need monitors of purchases and finance.” The airline’s current $1-billion debts versus EBITDA (earnings before interest, taxes, depreciation and amortization) comply with industry norms. Ang targets within a year PAL’s best revenues in the past, and to be at par with the likes of Cathay Pacific and Singapore Airlines by 2017. To stockholders he promises not just a turnaround, but “a growth story.”

Looking this writer straight in the eye, he asks: “If you were our shareholder, wouldn’t you believe we can do it?”