Philippine Airlines

Topics: Philippine Airlines, Airline, Philippines Pages: 11 (3496 words) Published: July 8, 2013
Philippine Airlines, Inc. (abbreviated as PAL and also known historically as Philippine Air Lines) operating as Philippine Airlines, is a flag carrier of the Philippines. Headquartered at the Philippine National Bank Financial Center in Pasay City,[2][3] the airline was founded in 1941 and is the first and oldest commercial airline in Asia operating under its original name.[4] Out of its hubs at Ninoy Aquino International Airport of Manila and Mactan-Cebu International Airport of Cebu City, Philippine Airlines serves twenty destinations in the Philippines and 26 destinations in Southeast Asia, South Asia, East Asia, Oceania and North America.[5] Formerly one of the largest Asian airlines, PAL was severely affected by the 1997 Asian Financial Crisis. In one of the Philippines' biggest corporate failures, PAL was forced to downsize its international operations by completely cutting flights to Europe and Middle East, cutting virtually all domestic flights except routes operated from Manila, reducing the size of its fleet, and laying off thousands of employees. The airline was placed under receivership in 1998, and gradually restored operations to many destinations. PAL exited receivership in 2007.

Philippine Aerial Taxi Company
On November 14, 1935 Philippine Congress approved the franchise of Philippine Aerial Taxi Company, Incorporated (PATCO) to provide mail, cargo and passenger service particularly in the island of Luzon. The company then had scheduled Manila-Baguio and Manila-Paracale flights.[6] The company became dormant for six years on its scheduled passenger operation under its assigned routes.[4]

Philippine Air Lines
On February 26, 1941 Philippine Air Lines, Inc. by a group of businessmen led by Andres Soriano - hailed as one of the Philippines' leading industrialists at the time,[7] who served as general manager, and former Senator Ramon Fernandez, who served as chairman and president. Philippine Air Lines, Inc. acquired the franchise of Philippine Aerial Taxi Company, Incorporated, thus the birth of Philippine Airlines. The airline’s first flight took place on March 15, 1941 with a single Beech craft Model 18 NPC-54 on daily services between Manila (from Nielson Field) and Baguio.[7] On July 22 the airline acquired the franchise of the Philippine Aerial Taxi Company. Government investment in September paved the way for its nationalization.

Entry of San Miguel Corporation (2012-present)
On April 4, 2012, San Miguel Corporation bought a 49-percent stake in Philippine Airlines for $500 million as part of a strategy to move away from its beer and food businesses. San Miguel, one of the Philippines' biggest conglomerates, said it planned to help modernise PAL's aging fleet and rejuvenate Asia's oldest commercial airline, which has lost its status as the nation's top carrier in recent years. San Miguel president Ramon Ang said the $500-million investment had bought his company a 49-percent stake in PAL and its low-cost offshoot, Airphil Express (AirPhil). "The new investment will allow the two airlines to strengthen operations and stay competitive with the implementation of PAL and AirPhil's fleet modernization," said a joint statement from PAL chairman Lucio Tan and San Miguel. Ang also stated that they are planning to join a global airline alliance. Billionaire Tan, the country's second-wealthiest man, is PAL's controlling shareholder.[34]

DestinationsPhilippine Airlines operates two hubs in Manila and Cebu. Virtually all PAL routes are operated from its hubs, with the majority of routes operating from Manila. Domestically, PAL flies to major Philippine cities from Manila and Cebu. It flies between Manila, and Cebu to a lesser extent, and cities in Asia-Pacific, the western United States, Canada and Australia. Many destinations served by PAL, especially destinations in the United States, Canada, Australia, Japan and Hong Kong, are areas with large overseas Filipino populations.[citation needed] PAL...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Philippines airline case study problem
  • Essay on Etihad Airline Creative Brief
  • Essay about Philippine Airlines
  • Philippine Airlines Essay
  • Airline Industry Porter's Essay
  • PHILIPPINE AIRLINES Microeconomics case problem Essay
  • Philippine Airlines Introduction Essay
  • practicum in airline Essay

Become a StudyMode Member

Sign Up - It's Free