PAL reaching for new heights as it celebrates 81st year

MANILA, Philippines — Philippine Airlines (PAL) is reaching for new heights as the airline enters its 81st year, moving at full throttle on a more youthful approach in both its strategy and leadership team.

PAL yesterday unveiled plans for network expansion, digital innovation, and a more cargo-driven strategy after the country’s flag carrier recently emerged from a successful restructuring with fresh capital, lower debt, and a streamlined fleet.

Leading the charge this time are a new generation of PAL officials.

“The airline of 81 years is currently being managed by a new team – the young and innovative executive and staff alike,” said Carmen Tan, PAL director and wife of PAL chairman and CEO Lucio Tan.

“The chairman and I assure you that through the leadership of Captain Stanley Ng, and my grandson Lucio Tan III, PAL will reach new heights,” she said.

In a statement, tycoon Lucio Tan said PAL’s 81st year marks a day of rebirth for the flag carrier as it looks forward to a comeback year not only for the airline, but also for the country.

“We will make good use of our new life by delivering a stronger, more reliable and dynamic airline that our customers will love and appreciate. You have my assurance that we will stay true to our mission of serving the Filipino people through a network that keeps the Philippines connected to the global economy,” he said.

For this year, PAL plans to roll out digital innovations that would enhance the travel experience of customers.

These include a revamped mobile-first website, a multi-channel customer contact center, increased self-serve options for rebooking and account management, an improved PAL Gift Card, and an enhanced Hiraya Flight Pass.

PAL is also expanding its partnerships with other airlines, building on current alliances and interline arrangements that would allow its customers to reach over 1,000 destinations.

Tan III, a director at PAL, said the management has already began transforming the flag carrier into a 21st century airline.

“We will adopt a youthful outlook and will no longer be tied to the old traditional airline models that run on legacy systems and the comfortable notions of the past,” Tan III said.

“We will focus on digital innovation. We envision PAL as a tech company, using technology to deliver smarter and simpler products that customers will love,” he said.

PAL is also going big on cargo, with innovations being planned such as a new cargo mobile app and website, Mabuhay Miles accounts for cargo customers and agents, and a last mile cargo delivery service via partnerships with express delivery firms in the country.

“PAL is now a cargo airline in our own right. We will continue to develop new all-cargo markets – removing dependence on passenger traffic as a single revenue stream,” said Ng, PAL president and COO.

“PAL will continue to operate more hybrid flight – carrying only cargo in one direction, and passengers in the other direction, using the same aircraft and employing an efficient process for turning around the airplane,” he said.

Ng said PAL is also exploring doing pure cargo flights and leasing freighter aircraft to boost the segment.

Ng, however, said PAL would remain to be a full-service network airline that offers unique nonstop routes and a choice of business and economy products for its customers.

“Innovation and a youthful spirit will motivate us in our efforts to grow back the air travel market. Above all, safety will be at the core of everything we do, from the airworthiness of our planes to the professionalism of our crew and all support teams,” he said.

According to Ng, PAL could return to its pre-pandemic size in two to three years’ time, but would require acquiring new aircraft to do so.

“So it’s going to take about two to three years because we’ve reduced the fleet size, therefore we won’t be able to go back there if we don’t acquire more airplanes,” he said.

Ng said PAL is actually “starting the process in looking into those things.”

“Of course, we have to forecast the demand. If we forecasted that the demand will be enough, then that’s the time we can actually customize our routes,” he said.

In terms of opening up new destinations, Ng said PAL at present does not see any big challenge, unless another COVID  variant comes up.

The ongoing increase in fuel prices is also seen having little impact on PAL in the short term.

“It seems to be opening up everywhere so it’s really a good time for airlines right now, except for the fuel price of course, but we don’t actually think it’s going to stay up there for a long period of time,” Ng said.