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Showing posts with label News. Show all posts
Showing posts with label News. Show all posts

Monday, April 16, 2012

Corporate: Regulator backs San Miguel purchase of PAL stockholder

Business World
April 16, 2012

THE CIVIL AERONAUTICS Board (CAB) has thrown its support behind San Miguel Corp.’s buy-in into flag carrier Philippine Airlines, Inc. (PAL), saying such investments to grow the industry were encouraged.
“I don’t see any regulatory issues here but there are administrative requirements that they have to submit,” CAB Executive Director Carmelo A. Arcilla said in a telephone interview last week.

Requirements, he said, include documents on changes in the corporate structure.

“But in terms of public policy, the government encourages investments in the aviation industry. Seven years ago, we only had two international airlines, now we have six.”

PAL President Jaime B. Bautista had earlier said the planned buy-in“will help the flag carrier in its refleeting program and make the airline more viable and competitive.”

San Miguel and PAL Holdings, Inc., in separate statements had said a deal has been signed for the Ang-led conglomerate to acquire a minority stake in the airline stakeholder for $500 million.

Specifically, San Miguel Investment Holdings, Inc., the conglomerate’s investment vehicle, said that on April 3, it acquired a minority stake in Trustmark Holdings Corp. and Zuma Holdings and Management Corp., which are majority owned by PAL Chairman Lucio C. Tan.

Trustmark Holdings and Zuma Holdings and Management are the holding firms of PAL and budget carrier Airphil, respectively.

The entrance of San Miguel in PAL, in fact, is a positive development, according to Mr. Arcilla.
“It benefits of the riding public to have more options,” Mr. Arcilla said.

“I don’t see any competitive issues here,” he said. “In fact, this is a development that will help the business community.”

Mr. Arcilla cited AirAsia Bhd., the Asia’s biggest low-cost carrier, which, together with Filipino businessmen, set up a budget carrier in 2010 called AirAsia Philippines.

“An example is when we allowed AirAsia to invest in the country. This means that the business community is confident in the aviation industry,” Mr. Arcilla said.

The airline, which started domestic operations last month, is 40% owned by the Malaysian carrier, while 60% are equally owned by Antonio C. Cojuanco, Michael B. Romero, and Marriane B. Hontiveros. -- Cliff Harvey C. Venzon

PAL to start HK-Kalibo flights

Business Mirror
Sunday, 15 April 2012 17:04
Lenie Lectura

FLAG carrier Philippine Airlines (PAL) is scheduled to operate the Hong Kong-Kalibo route later this month. It said last week it will start mounting flights to its newest route on April 27.  The twice weekly service­—aimed at further boosting market demand for Boracay—will utilize PAL’s bi-class Airbus A320 aircraft that seats 12 in business class and 144 in economy.

PAL flight PR289 leaves Hong Kong every Tuesday and Friday at 1:20pm and arrive in Kalibo at 3:50pm. The return flight, PR290, departs Kalibo at 4:50pm and arrive in Hong Kong at 7:20pm.

Special introductory fare for round-trip, economy tickets is being offered at HK$1,350.

Separately, PAL announced on Friday that flights covered by the rerouting or contingency flight paths were reverted back to their normal flight paths. The return to “normal flight paths” covering an estimated 12 PAL flights was a result of the rescinding by the CAAP or the Civil Aviation Authority of the Philippines of the NOTAM (Notice to Airmen) which contained the alternative flight paths to be followed by flights traversing the eastern section of Luzon as well as the no-fly zone. The rescinding of the NOTAM is a result of the failed satellite launch by North Korea. In the rescinded Notice to Airmen, flights traversing the eastern section of Luzon must take alternative paths due to the declared “no fly zone” over that part of the country. The no fly zone was originally slated from April 12 to April 16, from 5am to 1pm.

PAL seen breaching 10-million passenger mark this year

(The Philippine Star) Updated April 16, 2012 12:00 AM

MANILA, Philippines - From a full load of five passengers on its maiden flight to Baguio back in 1941, Philippine Airlines (PAL) today 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 the number of passengers projected to increase by 12 percent, PAL expects to breach the 10-million-passenger mark by end of 2012. Passenger load factor is likewise expected to improve to about 80 percent 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 Opens Hong Kong-Kalibo Route

MANILA, Philippines–Tourists who visit Hong Kong will soon just be a short plane ride away to the world-famous, fine sand beaches of Boracay as Philippine Airlines (PAL) opens a direct Hong Kong-Kalibo flight starting April 27.

The twice weekly service – aimed at further boosting market demand for Boracay – will utilize PAL’s bi-class Airbus A320 aircraft that seats 12 in Business class and 144 in Economy.

PAL flight PR289 leaves Hong Kong every Tuesday and Friday at 1:20 p.m., arriving in Kalibo at3:50 p.m.

The return flight, PR290, departs Kalibo at 4:50 p.m., arriving in Hong Kong at 7:20 p.m.

Special introductory fare for round-trip, economy tickets is being offered at 1,350 Hong Kong dollars.

Only PAL offers Business class and full service on all its narrow-body fleet of 14 A320 jets.

For bookings and inquiries, visit the PAL website – www.philippineairlines.com or call PAL Reservations at 855-8888.

Sunday, March 18, 2012

PAL launches new marketing campaign

By Mary Ann Ll. Reyes  
(The Philippine Star) 
Updated March 18, 2012 12:00 AM

MANILA, Philippines - Philippine Airlines (PAL) has laid the foundation to strengthen its brand image and reinforce its brand equity, even as it vowed to further reinforce its superiority over other local carriers this year.

PAL executive vice president for commercial group Vivienne Tan also unveiled during the flag carrier’s 71st anniversary last March 15 a new marketing campaign, “Love, Your PAL,” which depicts PAL’s gratitude to its loyal customers over the last 71 years.

“Today, I am proud to announce our latest campaign- Love, Your PAL - the signature for all our domestic and outbound communications. Love, Your PAL will provide the emotional message to make Filipinos fall in love with PAL again,” said Tan, the daughter of PAL chairman Lucio Tan.

The new campaign - coming at the close of PAL’s year-long 70th anniversary - is evident in the latest sales promo that offers heavily discounted rates on the purchase of second tickets to selected PAL destinations.
Passengers buying regular fare tickets from March 15 to 21, 2012 are eligible to buy a second ticket for as low as P77 on domestic routes, $7 on regional destinations, and $277 on international flights.

“All the issues and problems that have hindered our growth last year are behind us now. I am proud that the work of then PAL team has resulted in a great rebound in our sales and passenger count,” she emphasized.
Tan asked for the public’s support by patronizing PAL’s “attractive” offers that go beyond price. “We will excite the market with new programs that aim to strengthen passenger loyalty,” she added.

Upcoming promotions include the PAL-Mastercard partnership, the Manila premier of the musical “Phantom of the Opera” whose cast and crew are to be flown in by PAL, and the airline’s support to the local film “The Road,” to be flown by PAL to Hollywood as the first Filipino movie to be commercially shown in US theaters.

or 2012, PAL is expecting delivery of its third and fourth Boeing 777-300ER as well as four additional Airbus A320s, which will trigger expansion of PAL’s route network with the introduction of service to new destinations to be announced in the coming months.

PAL’s first flight took off on March 15, 1941 at Nielsen airfield in Makati to Baguio using a twin-engine Beech Model 18 airplane, carrying a full load of five passengers. After seven decades, PAL remains as Asia’s first airline and the country’s first national flag carrier.

Tan revealed that they will continue to build on the momentum the company started last year. “We will implement an aggressive program to build brand image and preference, strengthen loyalty with customers, and increase the quality of services and product offerings.

“Last year, we continuously offered attractive rates without sacrificing our full-service pricing strategy. These promos enticed travellers to continually fly the flag carrier. Despite the disruptions of the union strike, our activities allowed us to stay within our forecast. Imagine the prospects if there were no disruptions. As we move forward this year, several strategies will guide us in achieving the goals that we set,” she said.

Tan explained that they will build on this momentum by continuing to offer creative and innovative promotions to further strengthen PAL’s value for money proposition.

“We will continue to apply the latest technology to drive innovation and to make the consumer’s experience with us more convenient and pleasurable,” she pointed out.

Saturday, February 11, 2012

Free PAL cargo airlift to quake-struck areas

The free shipment of donations by Philippine Airlines (PAL) will now cover Iloilo, Bacolod, Dumaguete and Cebu for those affected by the recent deadly earthquake that struck the Visayas.

PAL President Jaime J. Bautista has instructed the PAL Foundation to again mobilize the airline's Disaster Response Initiative, overlapping an ongoing extended airlift of donations for victims of typhoon Sendong in Cagayan de Oro and Dumaguete.

The PAL Foundation will accept donations from non-profit organizations until March 15, 2012 (marking the airline's 71st founding anniversary) for immediate loading by PAL Cargo on all regular flights to the four key cities in the Visayas hardest hit by the tremor – Iloilo, Bacolod, Dumaguete and Cebu.

PAL Foundation Executive Director Ma. Carmen Sarmiento said an initial batch of tents are to be sent by the Department of Social Welfare and Development (DSWD).

As with the airline's previous Disaster Response Initiative, PAL will prioritize loading non-bulky, lightweight relief goods such as water purifying supplies and equipment, ready-to-eat food, clothing and medicines. PAL will only accept goods from shippers with counter-part NGOs at point of destination who will receive the donation.

PAL uses the twin-engine A320 aircraft, with a seven-ton-cargo capacity, to Iloilo, Bacolod and Dumaguete, while the wide-body jets – Airbus A330, with 22-ton-cargo capacity; A340, 23-ton-cargo; and B747, 24-ton-cargo – flies nine times daily to Cebu.

Del Monte eyes conquering Davao course

This year, Del Monte will try to do something it has never done before in the Philippine Airlines (PAL) Interclub – win the Men’s title away from home.

The Bukidnon-based defending champions will be parading basically the same team that triumphed in Del Monte and Pueblo de Oro in Cagayan de Oro last year as action heads to Davao where the challenge posed by Rancho Palos Verdes and Apo Golf are as formidable, if not greater.

With Canlubang taking a leave of absence this year and The Country Club serving out a suspension, Del Monte is picked as the team to beat, more so after its pool of players has improved more with exposure to several big national events.

Del Monte’s two Interclub titles were both won at home, the first coming early in the last decade with a squad backstopped by Buboy Jaraulla, who jumpstarted Del Monte’s run with a mind-boggling eight-under-par 64 over the tree-lined course.

The Sugar Barons, the winningest club in Interclub history, will not be seeing action this year with most of its players jumping to the professional ranks.

Southwoods, another club with a rich history in the event, is expected to vault back into serious contention this year, with Cebu Country Club, the second placer last year, tipped to again crowd the favorites for its first Championship Division title.

Seniors action actually gets the PAL Interclub going on February 16 with Canlubang seeking to extend its reign over perennial threat Luisita.

Men’s play will begin on February 22 where five players from each squad will see action each day with the top four to count. In Senior play, four will play with three players counting.

The Platinum sponsors for the 65 th edition of the Interclub include Mareco Broadcasting Network, Radio High, Stargate Media and Media Five; while the major backers are Asia Brewery, Business Mirror and Airbus.

Also lending support are the Department of Tourism, Philippine Graphic, Boeing International Corp., GECAS, Bombo Radyo, Philippine Daily Inquirer, Manila Bulletin, Moevenpick Resort & Spa Cebu, Plantation Bay, Radisson Blu Hotel and Imperial Palace Waterpark & Spa Cebu.

PAL still helping Sendong victims

Philippine Airlines (PAL) continues to help victims of typhoon 'Sendong' more than a month since it began airlifting relief goods for free to Cagayan de Oro and Dumaguete.

With more donations still lined up for loading, particularly those from abroad, the PAL Foundation extended the free shipment of donations to February 15, in hopes of lifting the spirits of Sendong victims this coming Valentine's Day.

PAL Foundation executive director Menchu Sarmiento said PAL Cargo will continue to load donated goods from non-profit organizations, as instructed by PAL President Jaime J. Bautista who extended the PAL Disaster Response Initiative after it lapsed January 31.

Sarmiento said the PAL Foundation is still receiving donations from abroad as endorsed by different Philippine embassies.

"While others may have shifted their attention elsewhere, PAL remains committed and focused in assisting the typhoon victims by providing the fastest transport of goods critically needed in devastated areas," added Sarmiento.

PAL Cargo reported loading so far more than 23 tons of relief goods with Asia Brewery heading the list of shippers, sending much-needed bottled water immediately after typhoon Sendong wreaked havoc across Northern Mindanao and Central Visayas on December 17, 2011.

The Tan Yan Kee Foundation of the Lucio Tan Group of Companies also joined the initial batch of donors, with Chairman Lucio Tan personally directing relief efforts in Cagayan de Oro.

PAL Cargo has been ferrying 16 to 18 tons of relief goods daily, made up mostly of food, water, clothing, medicines to Cagayan de Oro City. The national flag carrier has five flights daily to the Northern Mindanao City and twice daily to Dumaguete.

Some 2,000 body bags from Taiwan had been airlifted, as well as four pallets of water treatment supplies and equipment brought in by a medical team from Vancouver, as well as half a ton of oral rehydration salts from San Francisco, USA.

PAL is the only airline in the domestic sector using wide-bodied aircraft, enabling it to carry up to 20 tons in its belly. PAL is also the preferred airfreight carrier for aquatic, agricultural and time-sensitive products for export, since the airline has the most direct flights to Asia, Australia, Canada and US.

PAL Interclub returns to Davao February 15

The Philippine Airlines (PAL) Interclub golf championships return to Davao City starting Feb. 15 with the holding of the Seniors’ event at the Apo Golf and Country Club and Rancho Palos Verdes .

Defending champion Canlubang heads a cast of 92 teams, including 42 international squads in the four-day seniors’ event.

Last year, the Sugar Barons completed a runaway 28-point victory over great rival Luisita, posting 620 points in Cagayan de Oro City.

Manila Golf won the Founder’s championship, edging the Cebu Country Club by a single point while Chamorro topped the Sportswriters class over Fil-Am Hawaii and Philippine Navy which tied for second place.

The Friendship bracket went to Zamboanga Golf while Southern California Red Hawks went home with the international trophy.

The seniors’ play will end on Feb. 19, two days before the start of the regular Interclub event where Del Monte is the defending champion.

A total of 75 teams, 34 of which from overseas, are entered in the regular Interclub which will miss many-time titlist Canlubang which took a leave of absence this year.

Del Monte is expected to be challenged by Cebu Country Club which tied Canlubang for second place last year.

Also returning are Founders winner Alabang Golf, Sportswriters champ Eagle Ridge, Friendship titlist PGA British Columbia and international champion Southern California Red Hawks.

The Men's Regular event runs from Feb. 22 to 25.

The Platinum sponsors for this year's PAL Interclub include Mareco Broadcasting Network, Radio High, Stargate Media and Media Five; while the major backers are Asia Brewery, Business Mirror and Airbus. Also lending support are Philippine Graphics, Boeing International Corp., GECAS, Bombo Radyo, Philippine Daily Inquirer, Manila Bulletin, Moevenpick Resort & Spa Cebu, Plantation Bay and Radisson Blu Hotel.

Tuesday, January 17, 2012

PAL Valentine's promo: Buy one, get extra ticket for free

Stepping up its promotional offering, Philippine Airlines (PAL) is launching another special treat for travelers in time for Valentine’s Day: purchase a business class ticket and get another one, absolutely free.

Dubbed “Let Your Love Fly Free,” PAL's latest promo, which offers limited seats, gives passengers who buy regional and international tickets a chance to join and win in the “Love NYC Tour Raffle". Meanwhile, those who purchase domestic tickets earn one entry to the “Love Asian Tour Raffle.”
Promo  period is from January 17 to February 13, 2012. Tickets are valid for travel from January 23 to March 31, 2012.

Highlight of the “Love NYC Tour Raffle” is PAL's Valentine Broadway Experience package which includes two roundtrip Manila-New York business class tickets, accommodation at the Peninsula New York plus a pair of tickets to Phantom of the Opera and Wicked on Broadway.

To join the “Love NYC Tour,” just send the following details via SMS: PAL LOVENYC <primary ticket number> <primary passenger name> <address> example - PAL LOVENYC 0791234567890 JOSE FLORES 1234 PAG-IBIG STREET MANILA

Meanwhile, two roundtrip business class tickets to Hong Kong await winners of the Asian Tour raffle. To qualify, entries must register via SMS by sending the following information: PAL LOVEASIA <primary ticket number> <primary passenger name> <address> example - PAL LOVEASIA 0791234567890 JOSE FLORES 1234 PAG-IBIG STREET MANILA

Send to 2327 (Globe subscribers) or 09178902327 (non-Globe subscribers).

Included in the promo are PAL-operated flights between Manila and Taipei, Hong Kong, Macau, Xiamen, Bangkok, Ho Chi Minh, Singapore, Jakarta, Guam, Shanghai, Beijing, Tokyo, Nagoya, Fukouka, Osaka, Cebu-Tokyo, Honolulu, Delhi, Sydney, Melbourne, Los Angeles, San Francisco, Las Vegas.

All promo fares are subject to government taxes, fees and surcharges. Tickets must be issued together. Minimum of two passengers is required who must travel together both ways. Tickets must be issued 48 hours after confirmed reservations on or before February 13, 2012.

Rebooking is allowed at US$100 per ticket for international/regional and at P400 per sector for domestic. Under the promo, mileage accrual applies.

For ticket prices, bookings and inquiries, visit www.philippineairlines.com or call PAL Reservations at (02) 855-8888 in Manila or accredited travel agents.

Saturday, January 7, 2012

PAL adjusts flight sked due to NAIA runway repairs

Philippine Airlines (PAL) is revising some of its flight schedules to adjust to the planned seven-month partial closure of the Ninoy Aquino International Airport (NAIA) due to runway repairs.

With the closure of NAIA runway 06-24 from 12:30AM to 5:30AM starting January 10 up to August 2012, one (1) domestic and 12 international PAL flights either departing from or arriving at the NAIA will be adjusted accordingly.

The revised schedule of affected flights is as follows: PR752/753 (Manila-Bangkok-Delhi vv – January 10, 12 and 14) – MNL-BKK 5:30AM, BKK-DEL 8:30AM, DEL-BKK 12:35PM, BKK-MNL 7:15PM (arriving MNL 11:40PM); PR732/733 (Manila-Bangkok-Manila – daily) MNL-BKK 9:30PM, BKK-MNL 1:35AM (arriving MNL 5:55AM); PR505/506 (Manila-Singapore-Manila - daily) – MNL-SIN 9:20PM, SIN-MNL 2:00AM (arriving MNL 5:35AM);

PR113 (Los Angeles-Guam-Manila – Wednesdays and Sundays) – LAX-GUM 8:15PM, GUM-MNL 4:00AM (arriving MNL 5:30AM); PR 466/467 (Manila-Incheon, South Korea – daily) MNL-ICN 12:25AM, ICN-MNL 8:10AM (arriving MNL 11:20AM); PR 212 (Melbourne-Manila - Mondays, Thursdays and Sundays) 12:30AM (arriving Manila 5:30AM); PR107/117 (Vancouver-Manila – daily) YVR-MNL 10:55PM (arriving MNL 5:30AM); and PR843 (Manila-Cebu – Tuesdays - 5:30AM).

All other PAL flights will follow the old published schedule.

Certain flights departing from San Francisco and Los Angeles may experience some delays depending on wind conditions and the revised Manila airport schedule.

US passengers bound for Manila are still advised to check in at least two hours prior to their published departure time.

For the revised timings of departures and arrivals of early morning flights, passengers are advised to check the PAL website (www.philippineairlines.com) or call PAL Reservations (02) 855-8888.

Monday, December 19, 2011

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.

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.

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.

Sunday, November 20, 2011

PAL to use bigger jets to boost underground river tourism

By Tina G. Santos
Philippine Daily Inquirer


MANILA, Philippines—National flag carrier Philippine Airlines has vowed to promote the Puerto Princesa Underground River (PPUR)—now included in the provisional list of winners in the recently concluded online global search for the new Seven Wonders of Nature—by using bigger jets to bring in more tourists.

This is apart from PAL’s promotional activities in the Philippines and abroad, said airline president and chief operating officer Jaime Bautista.

“In support of  Puerto Princesa Mayor Edward Hagedorn’s program to attract more tourists, we will fly our bigger planes to Puerto Princesa,” said Bautista in a statement, adding that PAL was teaming up with the city government to maximize the tourism potential of the PPUR.

He said PAL would deploy wide body jets like the Airbus A330 to Palawan to accommodate the expected influx of tourists to the city after its underground river won global recognition.

At present, PAL flies twice daily to Puerto Princesa using an Airbus A320.

Hagedorn said the interest of tourists, both foreign and local, in the underground river had been greatly aroused by its new-found international fame.

Bautista said Palawan’s underground river was included in the top six destinations in PAL’s 2012 corporate calendar.

“This is how important PAL regards this wonderful destination,” he said.

Timely renovation
According to Bautista, the recent’ renovation and expansion of the Puerto Princesa airport was timely as it could now accommodate bigger aircraft.

Aside from the Puerto Princesa airport, other provincial airports that can accommodate bigger aircraft are those of Cebu, Davao and Iloilo.

Earlier this month, the PPUR was named one of the new Seven Wonders of Nature, along with the Amazon rainforest, Vietnam’s Halong Bay, Argentina’s Iguazu Falls, South Korea’s Jeju Island, Indonesia’s Komodo, and South Africa’s Table Mountain.

Hagedorn, for his part, credited PAL with helping develop and boost Palawan’s tourism industry. He said that back when Palawan was considered a missionary route, PAL was already flying to the island.

He noted that there used to be only two to three flights a day to Puerto Princesa. Now there are 11 flights a day, unloading not only local residents but mostly foreign tourists.

Last year, around 425,000 tourists visited the underground river. The city government expects some 550,000 visitors this year.

Already a Unesco World Heritage Site, the underground river is located in Barangay Sabang, 81 kilometers north of the city.

Longest in Asia
Also known as the St. Paul or Puerto Princesa Subterranean River National Park, the underground river runs 8.2 kilometers inside a limestone mountain. It is believed to be the longest underground river in Asia. While navigating the underground river, one can see formations of stalactites and stalagmites that had developed over 20 million years.

Known as the Philippines’ last biodiversity frontier, Palawan also has white-sand beaches, lush forests, wildlife parks and other natural wonders.

Friday, November 11, 2011

Philippine Airlines plans to resume domestic expansion and looks for green light from US regulators

Philippine Airlines (PAL) is not ready to abandon the domestic market – at least not yet. The floundering flag carrier, which has seen its share of the Philippine domestic steadily slip in recent years, plans to add back some domestic capacity in 2012 as its previously-reduced A320 fleet expands again by four aircraft.

International capacity will also be up in 2012 as PAL takes its next batch of B777-300ERs. PAL is banking on the Philippines regaining next year a Category 1 safety rating from the US FAA, which is necessary for the carrier to deploy B777-300ERs on US routes as planned. Continued restrictions on US routes is one of several challenges PAL faces as the carrier also tries to overcome increasing competition from LCCs and continuing worker protests.
As CAPA reported late last month, the LCC penetration rates in the Philippine domestic market has grown since 2005 from less than 50% to about 80%, driven by a combination of rapid expansion by the country’s low-cost carriers and contraction at PAL. Philippine CAB figures show PAL accounted for only 24% of domestic passengers in 2Q2011. PAL’s share of the market has slipped even further since late September, when a strike was waged by ground staff employees affected by PAL’s decision to outsource non-core functions including catering and call centre.

PAL's domestic operation has been pared back to only 60 daily flight since late September

Protests against the now implemented outsourcing plan continue, with striking employees having taken possession of PAL’s catering facility in Manila. PAL was able to quickly resume its full international schedule, using catering services from other vendors, but has not yet fully resumed its domestic operation. PAL president Jaime Bautista told CAPA on the sidelines of last week’s Association of Asia Pacific Airlines (AAPA) Assembly of Presidents in Seoul that the carrier is only operating 60 daily domestic flights, down from a pre-strike schedule of 140 flights per day.

Overall PAL is now operating 90% of its normal schedule, compared to only 20% the first day of the strike and 40% on subsequent days. The 10% of flights that remain cancelled are all domestic.

The Philippines’ three domestic LCCs have been hoping that PAL sticks permanently to the reduced schedule, resulting in an even further increase in the LCC penetration rate. But Mr Bautista says PAL still intends to return its domestic schedule to the pre-strike level. He says PAL also plans to increase its domestic schedule in 2012 as it takes delivery of four additional A320s.

Mr Bautista says PAL currently has an A320 family fleet of 16 aircraft (12 A320s and four A319s), down from 22 aircraft a few years ago. The smaller fleet has resulted in dramatic domestic capacity reductions as PAL has not cut its regional international operation, which primarily uses A320s with some routes, such as Hong Kong, utilizing widebody aircraft.

PAL and AirPhil independently expand A320 fleets

PAL’s A320 fleet has shrunk over the last two years as six A320s have been subleased to AirPhil Express, an LCC with the same primary owner as PAL. AirPhil has been steadily increasing its domestic operation as PAL has downsized domestically. AirPhil, which coordinates schedules and has a limited codeshare with PAL, plans to grow its A320 fleet from eight to 15 A320s by the end of 2012. But AirPhil is not sourcing any of its additional aircraft from PAL.

Mr Bautista says PAL has A320 deliveries slated for next April, June, August and November, resulting in a fleet of 20 A320 family aircraft by the end of 2012. He says about half of the additional capacity generated by this aircraft will be directed to the domestic market and half will be directed to the international market.
The resulting domestic capacity expansion will be relatively modest as all three of the country’s domestic LCCs – AirPhil, Cebu Pacific and Zest Air – are also planning significant capacity increases next year. But at least PAL’s expansion will keep it from continuing to rapidly lose market share and stay at or slightly above the 20% threshold domestically.

Capacity share by carrier type in Philippines domestic market (based on seats per week for 7-Nov to 13-Nov-2011)

In addition to the four A320s, PAL has two B777-300ER deliveries slated for 2012. Mr Bautistia says these aircraft will be delivered in June and November. PAL currently operates two leased B777-300ERs and has four more of the type on order with Boeing.

PAL initially committed to acquiring the six B777-300ERs in early 2008, with the anticipation of using the type to replace A340s and B747s on its flights to the US and Canada. But so far PAL has only been able to use its initial fleet of two B777-300ERs on three weekly flights to Vancouver as airlines from countries with Category 2 ratings are unable to add flights to the US or change gauge on existing flights. The FAA downgraded the Philippines from Category 1 to Category 2 only a few months after PAL committed to acquiring the six B777-300ERs.

As CAPA reported in Jul-2011, PAL needs the B777-300ERs to improve its product to the US and eliminate the need for a fuel stop on westbound flights. PAL now uses its ageing B747-400 fleet to operate daily flights to Los Angeles and San Francisco. PAL uses A340-300s to operate three weekly flights to Honolulu and four weekly Manila-Vancouver-Las Vegas flights (PAL has daily flights to Vancouver but can only use B777-300ERs on the three weekly flights that do not continue to Las Vegas because PAL is unable to operate B777-300ERs to the US).

PAL took the unusual step earlier this year to pay for a US consulting firm to help Philippine civil aviation authorities raise their safety standards in an attempt to meet Category 1 requirements. Mr Bautista now says he is hopeful of an upgrade to Category 1 by November, when PAL takes its fourth B777-300ER.

PAL banking on using B777-300ERs on US flights from 4Q2012

Mr Bautista says the upgrade to Category 1 is not necessary before 4Q2012 because PAL plans to deploy its third B777-300ER on flights to Australia and Japan. If the Philippines remains in Category 2 in Nov-2012, Mr Bautista says PAL will have to use its fourth B777-300ER on Asian routes. Clearly this is not an ideal situation as the B777-300ERs are best suited for long-haul routes and are significantly more efficient than the A340s and B747s PAL now uses for its US routes. PAL has experimented with having its B777-300ERs serve Australia, but reverted back to old schedules after finding the capacity increase over A330s, its previous equipment, was too much and the market wanted daily flights.

PAL is also banking on expanding its US network following the delivery of its fifth and sixth B777-300ER in 2013. But this is similarly contingent on Philippines returns to Category 1. As PAL faces increasing competition from LCCs domestically and in the regional international market, expansion of the carrier’s typically profitable US operation could be critical to its long-term term survival.
North American routes now account for 20% of PAL's weekly seats and 45% of its weekly ASKs.
PAL international capacity (ASKs) by region, for week of Nov-7-2011 to Nov-13-2011

PAL looks to use AirPhil to better compete with Cebu on regional international flights

Within Asia, PAL will continue to expand in an effort to maintain its market share on regional international routes. Mr Bautista says PAL believes there is room for AirPhil, which now has a very small international operation, to expand in the regional international market without risk of cannibalizing PAL’s own business. He says the idea is for AirPhil to focus on the lower end of the market, providing new competition for Cebu Pacific, while PAL focuses on the full-service sector.

The regional international LCC market is now dominated by PAL rival Cebu Pacific and to a lesser extent foreign LCCs. It is also being targeted by new local LCCs including Philippine AirAsia, which is planning to launch services in early 2012, and SEAir’s Tiger-branded A319 operation.

International expansion at AirPhil will also help AirPhil increase utilization of its A320 fleet, thereby reducing costs. Cebu Pacific currently enjoys a large cost advantage over the country’s smaller LCCs.

AirPhil now follows a hybrid model but Mr Bautista expects the carrier will start pursuing a purer LCC model as it strives to lower its costs. AirPhil’s codeshare with PAL will continue but Mr Bautista points out that it is a one-way codeshare with PAL only selling tickets on AirPhil’s turboprop flights. AirPhil took over PAL’s turboprop operation in 2009, when the carrier was still known as Air Philippines and following more a legacy carrier model.

AirPhil’s fleet of Dash-8 turboprops are used to serve airfields which cannot accommodate jets, including Caticlan – the gateway to popular tourist destination Boracay island. The codeshare service to Boracay and some other tourist islands is important for PAL to maintain connections to its international network, particularly for high end leisure passengers.

Mr Bautista said during the CEO panel discussion at last week’s AAPA assembly that the “low cost market will continue grow in Asia-Pacific, especially the Philippines”. The budget market in the Philippines remains relatively untapped because only 10% of the population currently flies.

Low costs are needed for PAL to fend off increasing competition from LCCs 

As most passengers in the Philippines are budget-conscious and competition with LCCs is already fierce, PAL also has been striving to lower its cost structure. The outsourcing of non-core functions is an important step for PAL as it significantly reduces headcount, which has historically been unnecessarily high.

Mr Bautista said during last week's assembly that the continuing protests from ground worker unions is no longer having a significant financial impact on PAL, which is expected to report late this month its earnings for the quarter ending 30-Sep-2011. “What’s really important is service that is provided has been downgraded in terms of catering. We are asking our passengers for their understanding,” Mr Bautista says.

PAL has been forced to use alternative vendors, resulting in a decreased level of service on flights departing Manila, as it still does not have access to its catering facility. PAL is now working with government authorities to try to remove the striking employees so it can regain access to its catering facility.

Mr Bautista pointed out that PAL’s plan to outsource non-core functions was approved twice by the country’s labor secretary and twice by president. “The problem is even with government approvals there are many groups and institutions that are against outsourcing,” Mr Bautista says. “It’s unfortunate we don’t get much support from our authorities.”

PAL Davao flights now back to normal

By Carmelle Marie Harrow
Wednesday, November 9, 2011

THE Philippine Airlines (PAL) is now operating normally after a month of flight disruption due to labor restiveness, an official said Wednesday.

Guesting in Wednesday's Club 888 forum at the Marco Polo Hotel, Lawyer Domingo Duerme, vice president for Mindanao operations, was happy to announce that normal flights schedules are back in place.

"We now have four flights out of the city and we would like to thank our valued customers who continue flying with us," Duerme said.

He assured travelers that PAL's flight has normalized and that passengers will surely reach their destinations without any flight disruption from this day onwards.

The four flight schedules are at 7:10 a.m., 11:50 a.m., 6:20 p.m., and 10:10 p.m.

While Fernando Mandanas, PAL Davao City branch manager, said they are now preparing for the December peak where most students, balikbayans and vacationing workers abroad come home for the Holiday season.
"Usually this happens during the third week of December and on the first week of January. This is the time that outbound flights will double up," Mandanas said.

He added that there are sufficient flights to augment the market on these months.

"We are a legacy airline and we provide convenience and comfort to our passengers and we will continue to uphold this," Duerme said.

Published in the Sun.Star Davao newspaper on November 10, 2011.

Tuesday, November 8, 2011

PAL urges biz groups to join ranks, protect interests

Philippine Airlines
November 8, 2011

Philippine Airlines (PAL) urged the country's business community to be more vigilant against acts of violence by dismissed workers similar to the October 29, 2011 incident at the PAL Inflight Center.
This developed as PAL called on government to safeguard the constitutional rights of employers against abusive former workers.

After showing photo evidence in full-page newspaper advertisements of the blockade of a PAL truck by outsourced PAL employees, PAL said other companies are susceptible to similar mob rule due to the absence of adequate government protection.

Police have yet to charge any of the terminated employees for blocking or attempting to torch a PAL truck last October 29.

PAL reiterated its call for immediate government action versus a minority group whose acts are hampering the flag carrier's return to full normal operations.

PAL said the lack of adequate laws protecting businesses from violent acts of dismissed workers has emboldened former PAL employees into escalating their protests from rallies and marches to threats of bodily harm and destruction of property.

Earlier, the Employers Confederation of the Philippines (ECOP), Federation of Philippine Industries (FPI), Federation of Filipino-Chinese Chambers of Commerce and Industry (FFCCCI) and Philippine Chamber of Commerce and Industry (PCCI) issued separate statements urging government to prevent further escalation of harassment and violence at PAL which had been deemed inimical to investor confidence in the country.

The business groups said increasing number of incidents of harassment inflicted on PAL employees and equipment is "not conducive to business and could discourage investors."

The ECOP, FPI, FFCCCI and PCCI urged government to protect the rights of business in the same way that workers' rights are protected by existing laws.

Tyranny at PAL Inflight Center

by Philippine Airlines on Tuesday, November 8, 2011 at 10:23am
 
Just before six in the morning on October 29, 2011, a Philippine Airlines truck was about to leave the PAL Inflight Center along MIA Road, Pasay City enroute to the airport.

Without provocation, scores of former PAL employees armed with rattan truncheons, wooden planks with nails, barbed wire and lighted torches blocked the vehicles from leaving the facility.

The protesters shouted invectives, parked their vehicles in front of the gate and set ablaze a gasoline-soaked carton box, all with the intention of barring PAL's truck from leaving the premises.

The following photo essay shows how protesting former PAL workers violated the law with impunity to deny PAL of its Constitutional right to free and unhampered use of its own equipment and facility.

To make matters worse, these workers have the temery of accusing PAL management of harassment. Pictures don't lie. Let the public be the judge.

 

Monday, November 7, 2011

Finance dep’t argues against airline tax breaks

Business World
November 7, 2011

THE GOVERNMENT should not provide tax breaks to international carriers since this would be unfair to domestic competitors charged similar taxes abroad, a Finance department official said.

“Foreign airlines are charged common carriers’ tax and gross Philippine billing tax but our local airlines are also charged different kinds of taxes in other countries,” Finance Undersecretary Gil S. Beltran said on Friday.
Flag carrier Philippine Airlines (PAL), in a letter to the Department of Finance (DoF), identified the array of income, business and percentage taxes it pays in other countries where it operates.

Australia, Canada, China, Indonesia, Japan, Singapore, Thailand, the United States and Vietnam were said to all charge a corporate income tax, with rates reaching as high as 30% of revenues generated in that particular country, the letter stated.

Value-added taxes (VAT) are likewise levied in Japan, Thailand and Vietnam, while goods and service taxes are imposed in Canada and Singapore. The US also charges a franchise tax, while China requires business taxes and local taxes.

“It is discriminatory to our domestic carriers, as represented by PAL, for the government to lift taxes on international carriers while they pay these taxes for their operations abroad,” Mr. Beltran said.

Foreign airlines, through the Joint Foreign Chambers, have been urging the government to stop charging the 2.5% gross Philippine billing tax and 3% common carriers tax imposed on gross receipts. This came as Air France-KLM, the sole European carrier operating in the Philippines, announced that it would phase out direct flights between Manila and Europe due to the heavy tax burden.

The international carriers were supported by various leaders in Congress who vowed last week to pass measures that would lift the taxes, claiming that the Philippines is the only country imposing such fees on airlines.

Mr. Beltran, however, argued that “other countries may not have a common carriers’ tax or a gross Philippine billing tax specifically, but they have similar income and business taxes imposed on the foreign operations of our domestic airlines.”

Moreover, domestic carriers are also subject to 12% VAT and 30% corporate income tax here, atop of the taxes they pay to other countries, he pointed out.

The Finance department issued a position paper last week opposing calls to remove the gross Philippine billing tax and common carriers tax. claiming that foreign airlines already enjoy “considerably preferential” rates compared to those imposed on local airlines.

A sticking point for international carriers, though, is the zero-rated VAT enjoyed by domestic carriers, allowing them to claim back the sales tax they paid on their inputs.

Mr. Beltran explained that the government only granted this since the services of domestic carriers are considered exports.

“The same treatment cannot be extended to foreign airlines since we have no way of verifying their purchases,” he explained.

In response, an official of the European Chamber of Commerce of the Philippines (ECCP) accused the government of “comparing apples with oranges, and that successfully for many years.”

“The international carriers pay taxes on gross revenue whether they make money or not. The local carriers pay income tax when they make money,” ECCP Executive Vice-President Henry J. Schumacher said in a text message on Friday. Besides, all airline companies pay income taxes in their home countries, he pointed out.
“The common carriers’ tax is especially burdensome as the foreign airlines pay on gross, even for tickets not generated in the Philippines,” Mr. Schumacher said.

European carriers are particularly hard-hit by these taxes since they incur a lot of costs, traveling long distances between Europe and Asia, he added.

Other airlines are also in the same boat, Mr. Schumacher claimed, with US-based Delta Air Lines, Inc. already reducing its flights to the country, and Japanese carriers “looking at the return on their investments flying to the Philippines.”