23 June 2009
Manila Standard
(c) 2009 Manila Standard, All Rights Reserved
Flag carrier, Philippine Airlines has implemented several cost cutting measures to survive the global economic crisis that has hurt the airline industry.
"These initiatives ranged from limiting staff travel to essential, operational-related trips, to multi-tasking, to replacement of office lights to CFL lamps to cut electricity bills," PAL president Jaime Bautista said in a statement.
Asked to elaborate on the cost cutting measure, the corporate communication division of the airline said "as early as late last year, the PAL management embarked on an internal cost-management program, soliciting the participation of all employees on different cost cutting initiatives."
Bautista said the honest-to goodness cost cutting program was aimed at weeding out unnecessary expenses to enhance business efficiency.
"Staff hiring is also on hold, except for critical line positions," he said. stressing that the airline continued to train flight crew in preparation for the arrival of new Boeing planes to serve the trans-Pacific flights.
Bautista said that being aware of the challenges facing the airline industry, PAL hopes to adapt and cope with the current market volatility by focusing on product improvement, asset and cost management and business efficiency.
Bautista said that to survive the crisis, PAL had undertaken several initiatives that include maintaining the airline's on time performance which, to date , is better than industry standards.
"Improving customer service both ground and in the air, and offering competitive and affordable rates to loyal customers and new passengers will entice them to fly more and patronize Philippine Airlines, " he said.
Bautista said PAL would also optimize its use of capital , aircraft and human resources.
While focusing on cost cutting measure, the airline said it had launched two low fare promos over the last three months, including "Real Deal" in April and "Way to Go" in early June to encourage travel during the lean months, as well as reward loyal customers.
However, both low fare promos - as low as $38 for a round trip ticket to Taipei during the Real Deal promo as $98 to Hong Kong, Macau or Taipei during the Way to Go promo - had limited sale and travel periods.
"PAL maintained full service on all its flights in spite of the special fares,"it said.
The International Air Transport Association earlier predicted that airlines could post combined losses of $9 billion this year with an unprecedented 15 percent revenue drop that will see industry revenues shrink by $80 billion to $448 billion.
Giovanni Bisignani, the director-general and chief executive of the group, said there were no facts to support optimism and that the industry was in survival mode.
-Roderick T. dela Cruz
