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Tuesday, December 20, 2011

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Monday, December 19, 2011

Lower PAL Revenues

Manila Standard Today
December 19, 2011
By Jeremiah F. de Guzman

Philippine Airlines said revenues will likely be lower in the October-to-December period as a result of the labor strike staged by ground employees in September.

"Because of the strike, our third quarter performance will be affected in terms of revenues," PAL president Jaime Bautista said in an interview Friday.

He said operations were trimmed down in the middle of September as a result of lower employees serving PAL's thousands of passengers every day.

"There was even a time that our flights were down 20 flights a day," Bautista said.

But he said the number of flights were now averaging 150 flights a day due to a surge in passengers for the holiday season.

Bautista said the seasonally high load factor expected for November and December failed to offset the reduction in number of flights in October and early November.

"But we are now back to normal," he said.

PAL's international operations account for 70 percent of the airline's passenger revenue.

PAL to ferry relief goods to Cagayan de Oro and Dipolog for free


PAL flights to Cagayan de Oro and Dipolog will carry free of charge disaster relief donations coming from reputable non-government organizations (NGOs) and religious groups addressed to their designated recipients in Cagayan de Oro and Dipolog.

PAL Foundation Executive Director Carmen Sarmiento said, “As in past natural disasters, PAL is taking the initiative to bring donations as quick as possible to affected areas. PAL will fly relief goods up to January next year until those affected by typhoon Sendong in Cagayan de Oro and other parts of Mindanao are able to rebuild their lives.”

The Lucio Tan Group kicked off its relief operations by sending bottled water from Asia Brewery, Inc. to CDO via PAL. Its philantrophic arm, the Tan Yan Kee Foundation, is likewise ready to fly in relief goods to disaster areas.

Sarmiento said recipients of donations from nearby cities should send their representatives to the Cagayan de Oro and Dipolog airports to formally accept the goods.

PAL will carry the relief goods as cargo on any of the five daily flights to Cagayan de Oro and five weekly flights to Dipolog using the Airbus A320 and A319 aircraft.

Priority will be given to lightweight and non-bulky essential items such as medicines and foodstuff.
Interested parties may contact  the PAL Foundation by sending an email to menchu_sarmiento@pal.com.ph.

PAL to carry relief goods

Business World
December 19, 2011
By Kathleen A. Martin

 PHILIPPINE AIRLINES will be carrying relief goods to Cagayan de Oro and Dipolog cities free of charge, the company said in a statement yesterday.

"PAL will carry the relief goods as cargo on any of the five daily flights to Cagayan de Oro and five weekly flights to Dipolog using the Airbus A320 and A319 aircraft," PAL said.

The carrier said priority will be given to essential items such as medicines and food.

"PAL will fly relief goods up to January next year until those affected by typhoon Sendong in Cagayan de Oro and other parts of Mindanao are able to rebuild their lives," Carmen A. Sarmiento, PAL Foundation executive director, said in the statement.

The carrier said nongovernmental organizations, private companies, religious groups and other parties who will be sending relief goods to the devastated areas may contact PAL Foundation.

PAL, starting Nov. 24, restored full flight capacity in preparation for the holiday season after reducing flights in late September due to its outsourcing program.

PAL laid off its workers from the airport services, catering services, and call center reservations units, which is said to cost the airline some $10- to $15 million a year.

PAL was forced to roll out its spin-off program on Sept. 27 after some PALEA members stopped working instead of the planned Oct. 1 implementation.

Sunday, December 18, 2011

Vivienne Tan: ‘I always look forward’

Philippine Daily Inquirer
December 18, 2011
By Marge C. Enriquez

Philippine Airlines (PAL) would have celebrated its 70th anniversary this year with ample pomp and promos. Despite the recent strike by its personnel, the national flag carrier is dusting itself off and getting on with it.

“We decided to end the year with a big bang,” declares Vivienne Tan, PAL’s executive vice president-commercial group. “We’re flying all our routes again. Everything will be okay from hereon. Things will just get better.”

When PAL dangled its Christmas Ticket incentives, offering fares for as low as 70-percent off, people snapped them up and waited daily for news about its surprise perks. One customer got the Manila-Delhi flight worth $108 on the first day of the promo and was still happy to pay a total of $510 after the fuel surcharge and government taxes. That’s just the beginning of PAL’s sweet deals.

Entrepreneurial

“I always look forward,” says Tan. The interview is in her office. She puts on a beige tiered scalloped skirt teamed with a minimalist black DKNY blazer. Her favorite accessory, a Cartier man’s watch, peeps from her sleeve. A pair of gold-buckled, black Roger Vivier court shoes pulls together her corporate look.

The stylish look is a vestige of her fashion background.

In reality, says PAL’s strategist Joel Santos, Tan is a “nerd.” She studied math and computer science in San Francisco and set up her business. In the late ’90s, PAL chairman Lucio Tan, her father, asked her to come home and assist him.

At that time, the airline was undergoing expansion and refleeting, until it was hit by the Asian financial crisis and labor disputes which were subsequently resolved.

An entrepreneur at heart, Tan left the company to establish Entrepreneurs School of Asia in Quezon City until her father asked her to rejoin the airline last January.

Her department is tasked to build the PAL brand and oversee the passenger service. Hence, Tan has become the “face of PAL” in its reimaging.

“I studied the landscape of the airlines in the Philippines. PAL is the only full-service carrier. That means we don’t charge customers by the kilograms of their luggage. When you need water, tissue paper or more food between meals, we don’t charge you. Our seats are bigger than low-cost carriers. There’s value in their ticket.”

Brand distinction

Tan points out that customer service will serve as the essential brand distinction for PAL, as its fares would generally remain reasonable. She understands that the well-informed traveler will not only seek the lowest prices, but will also be faithful to the airline that treats him nicely.

“PAL was not being differentiated from other low-cost carriers. People only look at price points. We’re trying to establish the distinction. We provide after-flight services—like when your luggage gets misplaced along the way, we send it back to you free of charge. We apologize and compensate. If you’re a frequent flyer, you can redeem the benefits. Most important, when there’s a flight disruption, we don’t leave our passengers behind. We take care of them. Our passengers get more than what they pay for,” says Tan.

Loyalty

The proof of that was the recent wildcat strike which started last Sept. 28, coinciding with the onslaught of Typhoon Pedring. Employees sought to obstruct PAL’s outsourcing program that was to be implemented in October. Globally, outsourcing has been changing the way big companies and airlines work. PAL has been one of the last to adopt to this measure.

“One of the things that I saw in a lot of PAL employees was loyalty. They really love PAL; they don’t want to leave the company,” says Tan. “Even before, my dad didn’t want to outsource. He didn’t want to see people without jobs. He did many things to make the company survive,” she says.

PAL offered the employees generous separation packages and the option to join the outsourcing operation, which did not sit well with the union.

The strike involved the airport services staff and even the catering service was barricaded. Nonetheless, Tan’s department and other PAL managers went to Naia to assist their passengers. On the first day of the strike, all the flights were canceled. The stranded passengers were fed and provided with water from the family-owned Asia Brewery. PAL also checked them into hotels and booked them in other airlines.

“Vivienne was very decisive,” says Santos. “Her guiding principle is that the customer comes first.”

Santos says PAL had to bite the bullet since they bought the tickets at full prices, an industry practice when purchasing on the same day. “If the passenger was booked in our business class, we had to buy the business class ticket from Singapore Airlines,” he says.

By the second day, PAL started to slowly restore its schedules. “We fixed the flight schedules. We compelled the operations to speed things up for the passengers and made sure that they were attended to during the flight,” she says. The airline operations became fully operational by the end of November.

Although the official losses were estimated at P40 million, Tan considers the tarnished image as a more severe consequence.

“Trust is more important. When trust is ruined in a relationship, you have to woo them back. When you fly with us, we know we have certain responsibilities,” says Tan.

Winning people

Tan adds that, aside from PAL’s continuing innovative offerings, it will persevere in its tourism campaign. When the Miss Earth Pageant was moved from Bangkok due to the floods to the Philippines, Tan grabbed the opportunity to promote the airline and the country. Partnering with the Department of Tourism, PAL brought the delegates all over the country.

Their happy faces and endorsements of the Philippines were captured in a video which is being shown in countries where PAL is represented. The contestants were so bowled over by the Philippines and Filipinos’ hospitality that they volunteered to be spokespersons of the country.

The airline has also quietly invited influential people from other countries to visit the Philippines. It recently hosted a group of well-placed Indians to enjoy Manila’s golf courses and cosmopolitan night life, in the hope that the visitors would spread the word about the country.

Tan points out that PAL will continue its Pinoy Homecoming campaign, luring the younger generation of Filipinos to see their homeland. This year, among PAL’s guests were Bruno Mars and apl.de.ap. of Black Eyed Peas.

PAL is also partnering with the Ninoy and Cory Aquino Foundation in the We Can Be Anything campaign, a drive to build 10,000 classrooms. The airline is promoting this drive to the Filipino community in the US.

Although PAL wants to be bullish about its expansion, Tan reveals that some of its plans have to be delayed as the country’s aviation industry was downgraded to Category 2 by the Federal Aviation Administration.

(Category 2 indicates that the level of aviation administration provided by Philippine authorities does not meet the international standards set by the International Civil Aviation Organization.) Hence, PAL can’t add  flights or routes, especially in the US.

New planes

But it has nothing to do with the airline. In fact, PAL is the only airline in the country to be accredited with the International Airport Transport Association Operational Safety Audit; it was also given a satisfactory rating by Skytrax, the official airline review site.

Next year, PAL will launch two more Boeing 777s. More comfortable, fuel-efficient and eco-friendly, these new planes have been flying to Vancouver and Japan. There will also be more celebrations of PAL’s 70th anniversary in other countries and more surprises for its customers.

Says Tan, “What we’ve been doing is a foretaste of things to come, so that everyone will know we’re back.”


Tuesday, December 13, 2011

PAL unveils biggest Xmas Ticket Promo

Philippine Airlines (PAL) will launch tomorrow (14 December 2011) its biggest, longest and most exciting international and domestic ticket sale for the year titled “12 days of Christmas.” 


PAL is offering giveaway rates for all its international and domestic destinations for the next 12 days starting December 14 until December 26. Travel period is from January 10 to March 15, 2012. All tickets will earn double miles under PAL’s Mabuhay Miles program.

As a special treat, PAL will also offer daily surprise “add ons” or “sweeteners” on top of attractive promo fares. Passengers are advised to watch out for daily announcements on print, radio, the PAL website and Facebook for the latest updates on freebies. Seats are limited and are on sale on a “first come, first served basis”.

Based on the promo mechanics, roundtrip tickets to the following destinations are priced accordingly (excluding fuel surcharges and government taxes): Beijing US$80; Shanghai US$60; Xiamen US$50; Delhi US$108; Sydney US$298; Melbourne US$298; Manila-Tokyo US$248; Cebu-Tokyo US$298; Nagoya US$248; Fukuoka US$248; Osaka US$248; Honolulu US$308; Guam US$228; Bangkok US$48; Saigon US$48; Singapore US$48; Jakarta US$48; Hong Kong US$30; Macau US$30; Taipei US$30; Las Vegas US$498; Vancouver US$498; Los Angeles US$498; San Francisco US$498; All Luzon – Economy P788, Business Class P3,988; All Visayas  - Economy P788, Business Class P3,988; and all Mindanao – Economy P1,388, Business Class P4,988.

Vivienne Tan, PAL executive vice president-commercial group said the promo is the flag carrier’s way of thanking passengers for their loyal and continuing patronage especially on the flag carrier’s 70th annniversary.
“PAL’s schedules and services are back to normal. We’re launching the biggest and longest promo to end the year with a bang. Families can extend their holidays since this promo allows everyone to travel right away starting January 10. It’s truly a Merry Christmas and Happy New Year!” Tan said.

For more details about these special deals, please log on to www.philippineairlines.com, call PAL Reservations at 855-8888 or visit your nearest travel agent.

Friday, December 9, 2011

PAL seen ending 2011 in the red

Philippine Daily Inquirer
December 19, 2011
By Paolo G. Montecillo

MANILA, Philippines—Flag carrier Philippine Airlines is expected to end the year in the red due mainly to labor woes and high fuel prices.

PAL president and chief operating officer Jaime J. Bautista said making matters worse for airlines across the world were the economic woes in the United States and Europe and the natural crises in Japan, which have dampened demand from developed markets.

“Our numbers are down by an average of 20 percent for the months affected by the strike,” he told reporters.

Bautsita said the strike by PAL Employees’ Association (Palea) in late September, in protest of the company’s plan to retrench 2,600 workers, forced the airline to scale down flights for several weeks.

The workers who went on strike have since been retrenched, but the sub-contractors hired by PAL have not been able to replace the fired employees.

Bautista said the airline had been suffering from the impact of the strike since October and this might continue up to early next year.

He said the unannounced strike by Palea had led to a slowdown in bookings, with many potential customers scared off by the possibility of further disruptions in flights.

As a result, he said the company’s average load factor had slumped to about 70 percent, which meant that close to a third of seats in every PAL flight is vacant.

Most affected are PAL’s domestic flights, which make up a third of PAL’s operations. Demand for international flights remained stable, Bautista said.

Last month, PAL, owned by taipan Lucio Tan, reported a net loss of $39.4 million for the three-month period ending September, a reversal from its $27.6-million profit a year ago.

The cost of fuel, which accounts for about 40 percent of the company’s expenses, also continues to threaten PAL’s profitability.

“The jet fuel price assumption in our budget is around $120 per barrel. Right now, it’s at about $126 per barrel,” he said.

Thursday, December 8, 2011

PAL, Chartis expand travel insurance to all passengers

Philippine Airlines and Chartis Philippines Insurance, Inc. have expanded their partnership by now making travel insurance available to all PAL passengers, adding another benefit to flying with the national flag carrier.
Previously, only passengers who booked their PAL flights online via the airline’s website www.philippineairlines.com were offered the option to purchase travel insurance from Chartis.

Beginning this quarter, those who book flights through PAL’s reservations call center and ticket offices or at accredited travel agencies can avail of Chartis travel insurance by simply logging on to www.philippineairlines.com/protectyourtrip.  Coverage is also broadened to include those who booked online but initially opted out of the insurance offer; they’re now given a further opportunity to add the product to their itinerary.

Through Chartis’ affordable policies starting from P200, passengers can protect their trip from travel inconveniences such as lost documents, rescheduled flights and even medical emergencies.
The exclusive product offered by Chartis to PAL passengers is available for all flight bookings originating from the Philippines.  With 90 years of history and jurisdiction in over 160 countries, passengers can be assured of Chartis’ comprehensive coverage for all their trips.

To learn more about travel insurance, visit www.philippineairlines.com/insurance.