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Friday, August 31, 2012

PAL Returns To Profitability With $11.4 Million In FY Quarter

Manila Bulletin
August 31, 2012
By EMMIE V. ABADILLA

Philippine Airlines (PAL) is back in the black, netting US$11.4 million earnings for its fiscal first quarter ending June, 2012, from a net loss of US$10.6 millio in the comparative period and is now planning to build a new airport of its own in a 2,000 hectare area 15 minutes away from Makati next year.

PAL President Ramon S. Ang made the announcement in a presscon after yesterday’s stockholders’ meeting at the Century Park Hotel, Manila.

Earlier, the airline’s holding company, PAL Holdings, also reported making gains in the fiscal first quarter ending June amounting to R489.2 million  from a net loss of R475.1 million posted the previous year.

PAL incurred a net loss of US$99.79 million for its 2011-2012 fiscal year, citing labor disturbance, the Japan tsunami and volatile fuel prices amidst civil strife in the Middle East.

PAL’s total comprehensive loss of US$99.79 million in the past 12 months to March 31, 2012 was a “stark reversal” from the US$72.52 million comprehensive income the year before, Chairman Lucio C. Tan conceded.

Operational revenues actually increased marginally by 2.6% to $1.72 billion as the airline carried 8.22 million passengers,down from the previous year but still strong enough to translate to better revenues, he noted.

However, uncontrollable external factors combined to jack up operational expenses by 14.6% to $1.84 billion, wiping out the modest gains and squeezing PAL financially.

Fuel was again the major culprit, with the average price shooting up to $128.37 per barrel, 30% higher than the year before, due to the turmoil in the Middle East.  As a result, fuel made up 43.8% of PAL’s operating expenses, up from 39.6% previously.

But now, the flag carrier has put the difficulties of the past year behind. Since new investors came in PAL this April, the airline gained stability, increasing its yield, load factors and cargo volumes and improving its maintainance.

In his report to shareholders, Tan said investments are being made to put PAL firmly on the path to future growth. For his part, the PAL president stressed that the airline’s fleet modernization program can sustain the positive results that was achieved by the airline for the fiscal first three months.

“Despite multiple challenges last year, PAL stayed the course and dramatically restructured its operations, enabling your airline to attract much-needed strategic investments and prime itself for Sustained push in the years ahead,” according to Tan.

Next year, by January or February, Ang will present PAL’s plan for a new air terminal and 4 runways to President Benigno Aquino III for his approval and to ensure that the project will be aligned to the head of state’s masterplan for Philippine tourism.

While he declined to give details on the project cost and location, the PAL President says it will be easy to find financing for the proposed terminal with just USD$500 Million equity. He is already in discussion with investors.

PAL can start construction of the new terminal in 2013, as soon as the President approves the project and plans to hire Korean contractors.”We can finish the terminal in three years.”

PAL plans to build own airport

The Philippine Star
August 31, 2012
By Lawrence Agcaoili



MANILA, Philippines - Flag carrier Philippine Airlines Inc. (PAL) is contemplating on putting up a new international airport near Manila as it undertakes a massive re-fleeting program that involves the acquisition of 100 aircraft within the next few years.

In a press conference after the company’s stockholders’ meeting yesterday at the Century Park Hotel, PAL president and chief operating officer Ramon Ang said the airline would put forward a presentation of the proposed international airport to Malacañang either by January to February next year.

Ang told reporters that the proposed international airport would be situated in a 2,000-hectare property and would boast of a modern passenger terminal and four runways.

With two initial runways, he explained that the proposed international airports could handle 1,500 events (landing and take-off) per day putting the Philippines at par with the airports in Sydney, Australia as well as Heathrow in London.

PAL currently exclusively occupies the government-run NAIA Terminal 2 also known as the Centennial Terminal while Cebu Air Inc. (Cebu Pacific) of John Gokongwei and other airlines operate at the NAIA Terminal 1 and NAIA Terminal 3.

Furthermore, he said the proposed airport would be accessible via elevated six-lane highways and would also feature hotels, malls, and other facilities.

He added that the proposed international airport would co-exist with the congested Ninoy Aquino International Airport (NAIA). The NAIA was voted as the world’s worst airport by the interactive website “The Guide to Sleeping in Airports.”

The Department of Transportation and Communications (DOTC) has ordered a reduction in traffic at NAIA due to delayed and cancelled flights.

The PAL chief executive refused to divulge other details of the project including the total cost as well as the exact location of the proposed international airport.

Ang revealed that the company would tap other investors to put up the proposed international airport that would be completed within three years.

He said an additional equity infusion of $500 million from existing shareholders would be enough to raise the financial requirement of the new international airport.

According to him, the airline is looking at tapping a Korean contractor to put up the proposed international airport.

This way, the multi-million dollar international airport project could be funded through a soft loan from the Export-Import Bank of Korea.

The airline could also tap the bond market to raise funds to bankroll the proposed international airport.

The government has been pursuing the development of the Clark International Airport to shift traffic away from the congested NAIA in Manila.

However, Ang pointed out that the airline has dropped plans to move to Clark because travel time to the former US military naval base is about two hours drive from Makati City.

PAL’s ongoing major fleet modernization program undertaken with the entry of diversified conglomerate San Miguel Corp. (SMC) involves the acquisition of 100 new aircraft.

It entered into a $7 billion contract with Airbus for the purchase of 54 aircraft comprising of single aisle A321s and widebody A330-300s wherein the first batch would be delivered early next year.

The $500 million fresh equity infused by SMC through San Miguel Equity Investments Inc. allowed the airline to undertake the modernization program. SMC controls about 49 percent of Trustmark Holdings. Trustmark and affiliate Zuma Holdings own PAL Holdings and sister airline AirPhil Express.

PAL currently maintains and operates 39 aircraft comprising of five Boeing B747-400s and three B777-300ERs as well as four Airbus A340-300s, eight A330-300s, 15 A320-200s, and four A319-100s.

Meanwhile, PAL is set to revive the PAL Express brand through the rebranding of AirPhil Express (Air Philippines Corp.) that would focus on regional and domestic flights.

Ang told reporters yesterday that the proposed rebranding to PAL Express from AirPhil Express has been submitted to the Securities and Exchange Commission (SEC).

PAL Express (short for Philippine Airlines Express) used to be the low-cost regional airline brand of Philippine Airlines. However, it ceased operations in March of 2010 and transferred all service to Airphil Express.

It used to operate from Mactan-Cebu International Airport in Cebu City, with smaller operations from PAL’s main hub in Manila, flying primarily intra-regional routes in the Visayas and Mindanao, as well as secondary routes to smaller airports in island provinces that are not able to accommodate mainline PAL jet aircraft.

Ang explained that PAL Express would continue to focus on regional and domestic destinations while PAL would be aggressively pursuing long-haul flights.

Monday, August 27, 2012

Lufthansa Technik Checks PAL Jet

Manila Bulletin
August 27, 2012

Three Philippine Airlines' (PAL) two brand-new Airbus A320-200 aircraft and one Boeing 777-300ER will undergo maintenance check at Lufthansa Technik Philippines.

LTP's vast experience and proven expertise with long-term client PAL makes the Manila facility the choice of maintenance of the newly leased aircraft.

As part of the agreement, the Air320's and B777 will be scheduled for line maintenance and other technical services.

"we are pleased to welcome PAL's new additions to its fleet. PAL remains as one of LTP's most valuable customer, and all these years of partnership can only translate to a more solid cooperation in the next years to come. We assure PAL of committed quality service to keep their planes flying safely ," shares Yayo Esquillo, key accounts manager.

PAL is expecting two more A320-200s and one B777-300ER to arrive before the year ends. The flag carrier will lease all brand new aircraft. (EHL)

Sunday, August 26, 2012

PAL Airlifts Flood Relief Goods

Manila Bulletin
August 26, 2012

Philippine Airlines (PAL) has airlifted nearly a hundred tons of high-value relief goods for free to victims of the recent calamity in Metro Manila and nearby provinces.

The relief goods, which ranged from export-quality bananas to specially fortified ready-to-eat food, came from various domestic and international donor-organizations who availed of the PAL Humanitarian Cargo Grant. (EVA)

Saturday, August 25, 2012

PAL books P489-M net income in Q1

The Philippine Star
August 25, 2012
By Lawrence Agcaoili

MANILA, Philippines - Flag carrier Philippine Airlines, a joint venture between taipan Lucio Tan and diversified conglomerate San Miguel Corp. (SMC), is back in the black in the first quarter of its fiscal year ending June as it booked a net income of P489.2 million on the back of lower oil prices as well as higher passenger traffic.

In a statement to the Philippine Stock Exchange (PSE), PAL Holdings said the income booked from April to June this year was a complete reversal of the P475.1 million net loss recorded in the same period last year.

PAL Holdings reported that the airlines revenues rose 5.8 percent to P20.783 billion in the first quarter of its 2012 fiscal year from P19.641 billion for the first quarter of its 2011 fiscal year on the back of higher passenger traffic.

“The increase in revenues of P1.142 billion during the quarter was primarily due to higher passenger revenues earned brought about by a 6.9 percent improvement in yields generated from passenger seat offerings complemented by the growth in passenger traffic,” the airline said.

It added that revenues also include lease income arising from aircraft operating lease arrangements with an entity under common control.

The company reported that expenses inched up by only one percent to P20.297 billion or the period April to June 2012 from P20.095 billion in the same period last year due higher expenses related to maintenance, passenger service, general and administrative and other expenses offset by the decrease in flying operations.
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Data showed that maintenance expenses jumped 20.9 percent as a result of higher engine and component repair costs incurred during the current period while passenger service expenses climbed 3.3 percent on the back of the growth in passenger traffic particularly on international flights.

Likewise, the airline’s general and administrative expenses went up 7.6 percent due to costs incurred related to the financing and delivery of one Boeing 777-300ER aircraft.

Data showed that the airline’s flying operations improved by P212 million mainly contributed by lower fuel costs and depreciation of flight equipment countered by the increase in aircraft lease rentals.

PAL Holdings said that jet fuel expenses fell 3.4 percent due to the decline in average jet fuel price per barrel to $135.6 in 2012 from $138.00 in 2011 to $135.60 in 2012.

PAL halts skid, posts income of P489.2M as of June

Philippine Daily Inquirer
August 25, 2012
By Paolo G. Montecillo

Publicly-listed PAL Holdings, parent firm of flag carrier Philippine Airlines, ended the April to June period in the black—following several quarters of losses—on the back of higher revenues and lower fuel costs.

In a disclosure, PAL Holdings said it had posted a comprehensive net income of P489.2 million, a significant turnaround from the P475.1 million-loss in the same three-month period last year. April to June is the first quarter of PAL’s fiscal year.

Total revenues for the first quarter of the current fiscal year amounted to P20.8 billion or 5.8 percent higher than last year’s P19.6 billion.

The increase in revenues of P1.14 billion was primarily due to “higher passenger revenues earned brought about by a 6.9-percent improvement in  yields generated  from passenger seat offerings complemented by the growth in passenger traffic.”

“Revenues also include lease income arising from aircraft operating lease arrangements with an entity under common control,” the airline said, referring to several planes it leased out to sister firm Air Phil Express.

“Growth in passenger traffic particularly on international flights operated had the effect of increasing passenger service expenses to P1.3 billion or by 3.3 percent,” the company said.

Total expenses for April to June 2012 period rose to P20.3 billion, a 1 percent increase over the previous year’s P20.1 billion.

“This was attributable to higher expenses related to maintenance, passenger service, general and administrative and other expenses offset by the decrease in flying operations,” the company said.

The company said income from flying operations improved by P212 million, mainly as a result of lower fuel costs and depreciation of flight equipment, countered by the increase in aircraft lease rentals.

Jet fuel, which remains the biggest operating expense, registered a 3.4-percent decrease over last year’s P9.12 billion. “This was brought about by the decline in average jet fuel price per barrel from $138 in 2011 to $135.6 in 2012,” the company said.

PAL swings to P489-m profit

Manila Standard Today
August 25, 2012
By Lailany P. Gomez

Philippine Airlines, the country's first flag carrier, is back in the black after posting increased revenues in the first quarter of its fiscal year ending June.

PAL Holdings said in a disclosure to the Philippine Stock Exchange Friday that the total comprehensive income in the April-to-June period hit P489.2 million, a turnaround from a loss of P475.1 million year-on-year, due mainly to higher passenger traffic.

Total revenues in the first quarter amounted to P20.78 billion, up 5.8 percent from last year's P19.64 billion.

PAL attributed the increased revenues to higher passenger income, brought about by a 6.9-percent improvement in yields generated from promotional seat offerings and growth in traffic.

Revenues also include lease income from arrangements with an entity under common control.

Total expenses rose 1 percent to P20.29 billion from P20.09 billion on year.

The company attributed the slightly higher expenses to maintenance, passenger service, general and administrative and other expenses offset by the decrease in flying operations.

Maintenance expenses rose 20.9 percent from last year's P1.78 billion as a result of higher engine and component repair costs incurred during the current period.

Growth in the passenger traffic, especially on international flights, increased passenger service expenses by 3.3 percent to P1.30 billion.

Costs incurred related to the financing and delivery of one Boeing 777-300ER aircraft increased general and administrative expenses by P45.8 million, or 7.6 percent from last year's P604.9 million.

Flying operations improved by P212 million, mainly contributed by lower fuel costs and depreciation of flight equipment that was countered by the increase in aircraft lease rentals.

Jet fuel, which remains PAL's biggest operating expense, registered a 3.4 percent decrease over last year's P9.11 billion after average jet fuel price per barrel decreased from $138 in 2011 to $135.60 in 2012.

In April this year, San Miguel Equity Investments Inc., a wholly-owned subsidiary of San Miguel corp., acquired a 49 percent equity interest in Trustmark Holdings Corp. Trustmark owns 97.71 percent of PAL Holdings, which in turn beneficially owns 84.67 percent of PAL.

Ramon Ang, PAL president, had said the airline would return to profitability in 2013.

Monday, August 20, 2012

PAL Unveils New Travel Promotion

Manila Bulletin
August 20, 2012
By Emmie V. Abadilla

Every purchase of a ticket to a Philippine Airlines (PAL) international point now automatically entitles the passenger to a free ticket to any PAL domestic destination.

The "Fly Global, Get Local" promo from August 19 to 25, 2012 covers both Fiesta Class (economy) and Mabuhay Class (business) tickets in a straightforward exchange.

Passengers buying international tickets on a particular service class receive free domestic tickets on the same service class.

Likewise, purchasing round-trip international tickets results in free round-trip domestic tickets. One-way international ticket purchases are allowed; the corresponding free domestic ticket is also one-way.

The promo considers only passengers paying full adult fares. Fares under the "deal fare" category do not qualify.

The free domestic ticket is subject to government taxes, fees and surcharges. These range from R387 to R704 on PAL's various domestic sectors.

The free domestic ticket is valid for travel between September 1 and October 26, 2012, and may be claimed at any PAL ticket office in the Philippines after the outbound-Manila international ticket is flown or 3 days after arrival but no later than October 26, 2012.

All PAL-operated international flights are covered by the promo (code-share flights are excluded). The flag carrier flies to 26 destinations in 14 countries and territories. It also flies to 19 points within the Philippines.

PAL teams score decent finishes

Manila Standard Today
August 20, 2012

Philippine Airlines fielded two teams in the recent 4th Cobra Energy Drink Ironman 70.3 Philippines triathlon with both finishing in the Top 10 in the corporate category - a remarkable result for first-time competitors in the high-level international event.

PAL Team A bagged sixth place in the 22-team field with a respectable time of 5 hours, 54 minuted and 25 seconds, well behind the 4:20:02 turned in by corporate division champion First Endurance-CPK Tri Team, but still impressive for a rookie squad.

PAL Team B was less than seven minutes behind Team A in eight spot, with a time of 6:01:09, also a highly notable finish for a side with no prior triathlon experience.

Both PAL teams were composed of employees from the flag carrier's flight deck and cabin crews.

Team A was made up of pilots Capt. Katherine Pijuan, who tackled the swim leg; capt. Jose Balinghasay, who handled the bike race segment; and Capt. Mike Ugalino who ran the anchor foot race.

Team B comprised Capt. Raymond Pabalan (swim), flight steward George Tayag (bike) and flight steward Cris Casalla (run).

The prestigious Cobra Energy Drink Ironman 70.3 competition, held earlier this month in Cebu, drew over 1,600 participants from 31 countries, easily making it the biggest sporting event in the visayas this year.

The event was a grueling 70.3-mile triathlon race where competitors swim 1.2 miles, bike 56 miles and run 13.1 miles around a demanding course from the Shangri-La Mactan Resort, traversing the cities of Lapu-Lapu, Mandaue, Cebu and Talisay, and back to Mactan island.

Bananas for flood victims

Manila Standard Today
August 20, 2012

Tons of export-quality Tutti-Frutti bananas are await loading into the cargo hold of Philippine Airlines flight from Cagayan de Oro City for distribution to families displaced by monsoon rains in Metro Manila and neighboring provinces. The fruits, sent over by Cagayan de Oro Eco Warriors, were airlifted for free through the PAL Humanitarian Cargo Grant. PAL also transported bananas from Fedco, a major producer in Davao City, whose donation was coursed through the Rotary Clubs of Davao and Makati; canned tuna from Gensan and Sarangani; and 40 tons of fortified food for children through the UN World Food Programme in Cotabato City.

Rookie PAL squads tally top 10 Ironman finishes

Philippine Daily Inquirer
August 20, 2012

Two greenhorn Philippine Airlines teams finished in the top 10 of the corporate category of the recent 4th Cobra Ironman 70.3 Philippines in Cebu.

PAL Team A finished sixth in the 22-team field with a time of five hours, 54 minutes and 25 seconds while PAL Team B wound up eight in 6:01:09.

Corporate division champion First Endurance-CPK Tri Team clocked 4:20:02.

Team A was made up of pilots, Capt. Katherine Pijuan (swim), Capt. Jose Balinghasay (bike) and Capt. Mike Ugalino (run).

Capt. Raymond Pabalan (swim) and flight stewards George Tayag (bike) and Cris Casalla (run) comprised of Team B.

The Ironman event lured over 1,600 entries from 31 countries. It consisted of 1.2 miles of swimming, 56 miles of cycling and 13.1 miles of running starting from Shangri-La Mactan Resort and passing through the cities of Lapu-Lapu, Mandaue, Cebu and Talisay.

A total of 22 corporate teams vied in the competition in which PAL was the official carrier.

Saturday, August 18, 2012

San Miguel, Petron, PAL donate to flood victims

Manila Standard Today
August 18, 2012

Diversified conglomerate San Miguel Corporation has released P11.8 million worth of food products and bottled drinking water for relief efforts for victims of floods throughout Metro Manila and parts of Luzon, brought on by a low pressure area last week.

SMC president and chief operating officer Ramon S. Ang said that the company's efforts to distribute goods are continuing and that it was committed to helping the victims of the floods that virtually paralyzed the city.

The products were distributed in critical areas in Quezon City, Manila, Mandaluyong, Navotas, Valenzuela, Malabon, Marikina, San Juan, Taguig, Pateros, and the provices of Bulacan, Rizal, Pampanga, Bataan, and Laguna.

More than 63,642 families or around 318,210 individuals in 22 locations are estimated to have benefitted from the reflief goods, which consisted of canned food, cooked eggs, and bottled water.

On top of these, employees across the San Miguel group also donated rice, noodles, and water. Employee volunteers from san Miguel Yamamura Packaging Corp., Petron Corp., and San Miguel Brewery Inc.'s Polo Brewery also took part in relief efforts, putting up soup kitchens and participating in rescue evacuation efforts.

For its own initiatives, Petron Corp., through the Petron Foundation, distributed relief goods to over 8,900 families or 42,500 individuals in 35 different locations in Bulacan, Bataan, Marikina, Navotas, Malabon, Quezon City, Manila, and Muntinlupa.

It identified locations based on the recommendations of the corporate Network for Disaster Response and its own sales, operations, corporate affairs, and Petron Foundation teams. Goods were distributed individually to affected families.

It has also organized soup kitchens that served around 7,200 indivuduals. It will distribute an additional 2,000 relief packs and its continuing efforts to set up soup kitchens will serve another 10,000 people.

Petron also activated around 350 gas stations nationwide to serve as drop-off points for relief goods such as used clothes, blankets, canned goods, and drinking water.

For its part, Philippine Airlines flew about 30 metric tons of ready-to-eat therapeutic food specially formulated for malnourished children, free of charge, through the PAL Humanitarian Cargo Grant.

The goods were donated by the United Nations World Food Program, for distribution by the DSWD. They also carried, at no cost, bananas donated by the Cagayan de Oro Eco Warriors and Fedco, a major fruit producer in Davao. The flag carrier, through its PAL Foundation, also donated surplus blankets.

Wednesday, August 8, 2012

PAL recruiting more cabin crew

PAL recruiting more cabin crew

Manila Bulletin
August 8, 2012

The Philippine Airlines (PAL) is recruiting more cabin crew nationwide starting August 11, 2012.

Applicants from Metro Manila as well as Northern and Southern Luzon who meet minimum qualifications of PAL's cabin crew are invited to participate in the recruitment tour.

Aspiring cabin crews from from Visayas and Mindanao are advised to watch out for announcements when the PAL recruitment tour goes to their regions in the coming months.

Applicants should bring their resumé, along with close-up and full-body photos, and apply in person at the event.

The required business attire for women is corporate blazer, inner blouse and knee-length skirt and high-heeled closed shoes. Hair must be tied back in a bun and they should be in full make-up.

For men, long-sleeved polo with necktie, black slacks and leather shoes.

The recruitment fair is scheduled from 8:00 a.m. to 5:00 p.m. at Diamond Hotel Philippines in Manila.

(EHL)