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Tuesday, July 31, 2012

PAL, tourism stunted by 'Category 2' status

PAL, tourism stunted by 'Category 2' status

The Philippine Star
July 31, 2012
By Federico D. Pascual Jr.

CATEGORY 2: It is ironic that Philippine Airlines already has three gleaming Boeing 777-300ER and awaiting delivery of three more of this aircraft of choice for long-haul flights, yet is barred from using them in the United States and Europe.

Reason: the Philippines is still languishing in the Category 2 cellar where the US Federal Aviation Administration consigned it five years ago.

As a consequence, the Philippine flag carrier is prevented from expanding its US network or even upgrading its Boeing 747-400 and Airbus 343 aircraft servicing the US West Coast or flying on to New York in the eastern seaboard.

Category 2 is actually not a rating on PAL but on the government’s oversight regulation of the local airline industry. The urgency of the government’s lifting itself out of FAA restrictions cannot be overstated.

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INNOVATIONS: Last week, PAL officials led by president/COO Ramon S. Ang and director Michael G. Tan (representing his father, chairman Dr. Lucio C. Tan), announced plans resulting from the synergy between PAL and San Miguel Corp. that has taken management control of the airline.
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Unveiling PAL’s refleeting and route expansion plans at the Shangri-la Makati, Ang said: “Our growth strategy for Philippine Airlines is simple: modernization of its fleet, expansion of its network, and improvements in passenger service.”

The innovations include new inflight menu prepared by top-rated guest chefs, Book & Buy ticketing kiosks in selected Petron gas stations, Apple iPads for onboard entertainment in trans-Pacific flights, and PAL’s third Boeing 777-300ER.

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MORE B777s: The first three B777s of PAL were delivered in November 2009, January 2012 and June 2012. The 370-seater Boeing jets now fly to Hong Kong, Japan, Australia and Vancouver.

The airline will soon take delivery of three more Boeing 777-300ERs. Per expansion plans, PAL wants to fly to Toronto, Paris, London and New York.

But a way must be found first to remove restrictions in the US and also in Europe where all Philippine airlines have been blacklisted since 2010.

Each B777 has two of the most powerful commercial jet engines — the GE90-115BL which has cleaner emissions to protect the environment and give passengers a quieter and more comfortable ride.

Each B777 will save PAL as much as $20 million annually in fuel cost. It has unmatched levels of payload (28 tons of cargo) and range (7,825 nautical miles), flying more passengers nonstop over longer distances.

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CAAP DOWNGRADE: The FAA downgraded CAAP to Category 2 after finding the agency not technically equipped to supervise Philippine airline operations.

The European Union cited the same reasons when it subsequently banned all Philippine carriers, not just PAL, from flying anywhere in Europe.

Under Category 2, PAL has been limited to a maximum 33 flights each week to the US. Other Philippine airlines are also banned from US airspace.

For its flights to Los Angeles (two flights every Wednesday and Sunday and one daily the rest of the week) PAL uses its older Boeing 747s and Airbus 343s. It uses B747s for its single daily flights to San Francisco.

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US EDGE: All because of Category 2, PAL is not allowed to even replace its equipment with its new B777s even if this modern jet gives safer service to passengers bound for the US.

In contrast, American carriers continue to enjoy unlimited rights to fly to and through the Philippines under an “open skies” arrangement.

Hawaiian Air, for example, has captured the Manila-Honolulu leg and gobbled up the Hawaii stop of PAL. Now PAL has been relegated to Guam for its stopover between Manila and the West Coast.

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ICAO AUDIT: In November 2009, CAAP also failed an ICAO (International Civil Aviation Organization) audit. Consequences:

• Per ICAO, only PAL was properly certified by CAAP, while 47 other Philippine carriers were not.

• ICAO issued a global “significant safety concern (SSC)” alert for the Philippines.

• Asia/Pacific countries imposed tighter surveillance, and demanded assurances from CAAP that Philippine airlines are safe.

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INJURY TO PAL: As if the FAA Category 2 was not bad enough, in April 2010 the European Union banned airlines of the Philippines from their airspace. In domino-like fashion:

• European travel agents warn Philippine-bound passengers that PAL is blacklisted and that their travel insurance may not cover flights on Philippine airlines.

• With PAL’s Europe sales pipeline cut off, some EU airlines suspended interline agreements, such as those under the IATA, with PAL.

• PAL is losing its traditional 120,000 passengers per year with no indication that it will regain them in the short term.

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EUROPEAN BAN: Because of the FAA’s Category 2 classification and the European Union’s blacklist, PAL suffers in other ways:

• Expected surge in insurance premiums.

• Costlier aircraft leases, tougher financing terms.

• Unfair portrayal as an unsafe, third-rate airline.

• Lost goodwill that could be a long-term stain on the flag carrier’s good name.

There is also the greater loss to the country: Missing out on the lucrative European tourist market, reduced business for hotels, tour operators, restaurants and retail establishments, and potential negative impact on trade and commerce.

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READY FOR AUDIT?: To help CAAP, we heard that PAL has hired and is paying millions of dollars for the services of US-based Tim Neel and Associates to help government craft a roadmap out of Category 2.

Tim Neel is also contracted to provide much-needed software and train CAAP personnel on key operational issues regularly audited by FAA and ICAO.

After three directors general (Ruben Ciron, Alfonso Cusi and Ramon Gutierrez), CAAP has inched closer to regaining Category 1 status.

However, it remains unclear when the full audit of the agency by the FAA will happen, which is the condition sine qua non before the Philippines could get out of Category 2

It now rests on the shoulders of Lt. Gen. William K. Hotchkiss III (ret.), the new appointee of President Noynoy Aquino, to ensure that CAAP is ready for the dreaded audit.

PAL to adhere to Miaa directive on airport fees

Business Mirror
July 31, 2012
By Lenie Lectura

Philippine Airlines (PAL) on Monday said that it will adhere to a directive issued by the Manila International Airport Authority (Miaa) insofar as the collection of terminal fees is concerned.

The flag carrier advises its passengers that all PAL tickets issued and reissued from August 1, 2012, covering domestic flights departing from Manila, will include the P200 the Domestic Passenger Service Fee (DPSC) - commonly known as airport terminal fee - in the ticket cost.

However, passengers holding tickets issued before August 1, 2012, should bring a copy of their e-ticket or itinerary receipt and still pay the DPSC at Miaa designated counters at Ninoy Aquino International Airport Terminal 2.

Covered by the Miaa advisory are all tickets purchased online, at PAL ticket offices or from accredited travel agents.

Holders of unused tickets which already include the P200 DPSC may get a refund of the fee within one year from the date of ticket issuance.

Affected passengers are advised to transact the refund with any PAL ticket office. PAL will process the refund in accordance with its policies and procedures.

Saturday, July 7, 2012

PAL 'Fly All You Can' promo up

Philippine Daily Inquirer July 7, 2012

Philippine Airlines' (PAL) latest promo offers unlimited flights to 11 regional and two domestic destinations for as low as US$318 in economy and US$1,318 business class.

Travelers buying PAL's "Fly All You Can" pass from July 6 to 13 can fly as many times as they want to Cebu and Davao, or from Manila to Hong Kong, Macau, Taipei, Singapore, Bangkok, Saigon, Jakarta, Beijing, Shanghai, Bali and Xiamen. Also included is the Singapore-Jakarta sector.

The Fly All YOu Can pass must be converted into any number of tickets to any of the designated destinations within one month after purchase of the pass. Passengers can visit the same city more than once. Unlimited transfers in Manila are also permitted.

Tickets must be used within eight weeks from date of first travel or on/before Dec. 10. Rerouting and refunds are allowed under certain conditions.

Tickets issued under the Fly All You Can pass do not include government taxes, fees and surcharges.

Taxes vary according to destination. For instance, the total additional charge for flights to Cebu on top of US$318 is P913, while for flights to Davao is P1,137.

The Fly All You Can Pass may be purchased at any PAL ticket office in the Philippines, at PAL's website (www.philippineairlines.com), PAL Reservations (855-8888) or any Philippine-based travel agent accredited by PAL.

PAL 'Fly All You Can' promo up

Philippine Daily Inquirer
July 7, 2012

Philippine Airlines' (PAL) latest promo offers unlimited flights to 11 regional and two domestic destinations for as low as US$318 in economy and US$1,318 business class.

Travelers buying PAL's "Fly All You Can" pass from July 6 to 13 can fly as many times as they want to Cebu and Davao, or from Manila to Hong Kong, Macau, Taipei, Singapore, Bangkok, Saigon, Jakarta, Beijing, Shanghai, Bali and Xiamen. Also included is the Singapore-Jakarta sector.

The Fly All YOu Can pass must be converted into any number of tickets to any of the designated destinations within one month after purchase of the pass. Passengers can visit the same city more than once. Unlimited transfers in Manila are also permitted.

Tickets must be used within eight weeks from date of first travel or on/before Dec. 10. Rerouting and refunds are allowed under certain conditions.

Tickets issued under the Fly All You Can pass do not include government taxes, fees and surcharges.

Taxes vary according to destination. For instance, the total additional charge for flights to Cebu on top of US$318 is P913, while for flights to Davao is P1,137.

The Fly All You Can Pass may be purchased at any PAL ticket office in the Philippines, at PAL's website (www.philippineairlines.com), PAL Reservations (855-8888) or any Philippine-based travel agent accredited by PAL.

Friday, July 6, 2012

'Fly All You Can' promo offered by PAL

'Fly All You Can' promo offered by PAL

The Philippine Star
July 6, 2012
By Lawrence Agcaoili

MANILA, Philippines - Flag carrier Philippines Airlines, a unit of diversified conglomerate San Miguel Corp., has combined a previous marketing strategy for regional and domestic destinations to revive its “Fly All You Can” promo.

In a statement, PAL said the latest promo offers unlimited flights to 11 regional and two domestic destinations for as low as $318 in economy and $1,318 business class to passengers buying the “Fly All You Can” pass from July 6 to 13.

The buyers could fly as many times as they want to Cebu and Davao, or from Manila to – Hong Kong, Macau, Taipei, Singapore, Bangkok, Saigon, Jakarta, Beijing, Shanghai, Bali, and Xiamen as well as the Singapore-Jakarta route.

Under the promo, PAL said the Fly All You Can pass must be converted into any number of tickets to any of the designated destinations within one month after purchase of the pass.

Likewise, travelers could visit the same city more than once and unlimited transfers in Manila are also permitted.

PAL clarified that the tickets availed through the “Fly All You Can” pass should be used within eight weeks from date of first travel or on/before Dec. 10 this year.
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It added that rerouting and refunds are allowed under certain conditions.

The airline reiterated that tickets issued under the “Fly All You Can” pass do not include government taxes, fees and surcharges.

Taxes vary according to destination wherein the total additional charge for flights to Cebu on top of $318 is P913 while for flights to Davao is P1,137.

Holders of Fly All You Can passes could also avail of special fares to Australia, Japan and India wherein round-trip fares for both on economy and business class are reduced by as much as $100 on flights to Sydney, Melbourne, Tokyo, Nagoya, Fukuoka, Osaka, and New Delhi.

In July last year, PAL launched the “Fly Asia Pass” promo that allowed travelers to fly as much as they can in the key cities in Asia for only $270. One can travel from Manila, Cebu and Davao to Bangkok, Beijing, Hong Kong, Jakarta, Macau, Saigon, Shanghai, Singapore, and Taipei.

Due to the success of the promo, PAL also unveiled its “Fly PINAS” promo in August last year that allowed ticket buyers unlimited travel to 20 domestic points between Aug. 8 and Nov. 15 at a discounted price of P7,070 for the Fiesta (economy) class and P37,070 for the Mabuhay (business) class.

“Fly PINAS” pass holders were allowed to 20 domestic points in the PAL network, including Bacolod, Butuan, Cagayan de Oro, Cebu, Cotabato, Davao, Dipolog, Dumaguete, General Santos, Iloilo, Kalibo, Laoag, Legazpi, Manila, Ozamiz, Puerto Princesa, Roxas, Tacloban, Tagbilaran, and Zamboanga.

PAL is set to get P17 billion in fresh funds from its controlling shareholders in line with plans to expand operations and return to profitability. Its parent firm – PAL Holdings Inc. – approved a hike in its authorized capital to P23 billion from P20 billion.

SMC through San Miguel Equity Investments Inc. control about 49 percent of Trustmark Holdings. Trustmark and affiliate Zuma Holdings own PAL Holdings and sister airline AirPhil Express.

SMC president Ramon Ang earlier announced that the flag carrier would pursue a $1-billion expansion program that would involve the acquisition of as much as a hundred new planes.