AIRLINE INDUSTRY IN THE PHILIPPINES:

An Assessment
Submitted by:
Avegail Evangelista
Sharon Lorenzo
Jeramie Alag

Submitted to:
Ms. Athena Y. Jacinto

Philippine Airlines

About Philippine Airlines

Philippine Airlines (PAL), a trade name of PAL Holdings, Inc. (PSE: PAL), also known historically (until 1970)
as Philippine Air Lines, is the flag carrier of the Philippines. Headquartered at the PNB Financial Center
in Pasay City, the airline was founded in 1941 and is the first and oldest commercial airline
in Asia operating under its original name. Out of its hubs at Ninoy Aquino International
Airport of Manila, Clark International Airport of Angeles, Mactan-Cebu International Airport of Cebu,
and Francisco Bangoy International Airport of Davao, Philippine Airlines serves 31 destinations in the
Philippines and 54 overseas destinations in Southeast Asia, East Asia, Middle East, Oceania, North
America and Europe. Philippine Airlines operates a mixed fleet of Airbus and Boeingaircraft with Airbus
A320, Airbus A321, Airbus A321neo, Airbus A330, Airbus A350, and Boeing 777-300ER.

Philippine Airlines is owned by PAL Holdings (PSE: PAL), a holding company responsible for the airline's
operations. PAL Holdings is in turn part of a group of companies owned by business tycoon Lucio
Tan. ANA Holdings, the holding company of All Nippon Airways, has a 9.5% stake in PAL Holdings. PAL is
the ninth-largest corporation in the Philippines in terms of gross revenue, as stated in the Philippines' Top
1000 Largest Corporations of 2017

Source: https://en.wikipedia.org/wiki/Philippine_Airlines#Corporate_management

Current Standing

Philippine Airlines (PAL) has been Certified with the 4-Star Airline quality ranking by SKYTRAX, the
international air transport rating organization.

This 4-Star Airline rating is a mark of quality distinction that recognizes excellent standards of Product
and Staff service across different assessment categories for both the On board and Airport environment,
with Philippine Airlines noted for providing much improved standards of product and service quality to its
customers.

Philippine Airlines achieved this coveted rating after Skytrax conducted a rigorous audit across the
airline’s inflight and ground service for both international and domestic flights and noted major
enhancements on its end-to-end passenger experience and distinct wholehearted service called Buong
Pusong Alaga.

The rating upgrade is a key result of a multi-year top-to-bottom end-to-end enhancement of the
Philippine flag carrier.

Source: https://www.philippineairlines.com/en/AboutUs/flyPAL4Stars-allstars

https://www.airlinequality.com/airline-reviews/philippine-airlines/
How PAL’s Ticket are sold

There are several ways on how Philippine Airlines sell their seats.

1. Direct booking

Direct booking can be done Via ff:

 PAL Website (online booking)

 Walk-in (thru PAL ticketing offices)

2. Accredited agencies by PAL

One example of this is HALLO HALLO TRAVEL AND TOURS INC. Hallo Hallo Travel and Tours, Inc.
(former Do! World Travel and Consulting) is a Japanese owned agency based in Manila, Philippines. It
started its operations last August 2011. It caters the needs of both foreign and local tourists when it
comes to outbound and inbound travel, tour packages, ticket issuance and other activities.

Though it's a newly founded company it has already established a good relationship with other
agencies. After a year of operating, it has become a member of Philippine Airlines' Domestic Ticketing
Program (DTP) which makes the company an accredited PAL ticket issuing agency.

3. IATA Accredited agencies

The International Air Transport Association (IATA) is the trade association for the world's airlines,
representing some 290 airlines or 82% of total air traffic. They support many areas of aviation activity and
help formulate industry policy on critical aviation issues.

IATA accreditation greatly simplifies the business relationship between travel agents and airlines.
Some 60,000 IATA travel agents worldwide currently benefit from IATA accreditation, selling US $220
billion worth of airline tickets on behalf of IATA airline members.
 Here in the Philippines, there are several agencies that are members of IATA. Most of them are also
registered under Philippine Travel Agencies Association. Travel agencies established locally are
encouraged to register under PTAA for them to be granted licenses and accreditation.

One of the international travel agencies operating here in the Philippines and is a member and
accredited by both IATA and PTAA is H.I.S. (High International Standard) Travel Agency. H.I.S. is a
Japanese owned travel agency founded in 1980, based in the Shinjuku Oak Tower in Nishi-Shinjuku,
Shinjuku, Tokyo, Japan, specializing in lowcost package tours. H.I.S. currently has 557 branches in
worldwide.

4. Corporate account/Philippine Airlines Corporate Circle (some companies that has direct contract with
PAL)

As a full-service carrier, PAL now has special promos and travel packages customized to companies
with employees requiring frequent travel, either individually or as a group, and complemented by PAL's
frequent flyer rewards program and world-class cabin service.

5. Codeshare Companies (Airline Partners)

A codeshare agreement, also known as codeshare, is a business arrangement, common in the

aviation industry, in which two or more airlines publish and market the same flight under their own
airline designator and flight number (the “airline flight code”) as part of their published timetable or
schedule.

The term "code" refers to the identifier used in flight schedule, generally the
two-character IATA airline designator code and flight number. Thus, XX123 (flight number 123 operated
by the airline XX), might also be sold by airline YY as YY456 and by ZZ as ZZ9876. Airlines YY and ZZ are in
this case called "Marketing airlines" (sometimes abbreviated MKT CXR for "marketing carrier").

Most of the major airlines today have code sharing partnerships with other airlines, and code
sharing is a key feature of the major airline alliances. Typically, code-sharing agreements are also a part
of the commercial agreements between airlines in the same airline alliances.
Philippine Airlines codeshares with the following airlines:

 Air Macau  Malaysia Airlines

 All Nippon Airways  PAL Express (Affiliate)

 Bangkok Airways  Royal Brunei Airlines

 Cathay Pacific  Turkish Airlines

 China Airlines  Vietnam Airlines

 Etihad Airways  WestJet

 Garuda Indonesia  XiamenAir

 Hawaiian Airlines

Sources: http://www.ptaa.org.ph/website-content/allied-members-2/

https://www.iata.org/services/accreditation/accreditation-travel/pages/index.aspx

https://www.hisgo.com.ph

https://hallohallotravel.com/

https://en.wikipedia.org/wiki/Philippine_Airlines

List of commendable services

Philippine airlines has a great list of services to offer. Before they get there 4-star rating at Skytrax. They
have been through many incarnations. The following are PAL’s formula into making it to 4-stars.

 Buong-Pusong Alaga (Wholehearted Service)

The signature Buong-Pusong Alaga (wholehearted service) is an unwavering promise to every

traveler. More than ever, PAL is dedicated to giving above-and-beyond service in each flight. With
rigorous training programs and leadership empowerment workshops, their partners and crew members
always ensure each passenger feels the Heart of the Filipino.
 Fleet Modernization and Expansion

By the end of 2017, their aircraft family grew to a current (and growing) count of 88—with the
addition of two new Boeing B777’s (rounding up our B77 fleet to 10), and five Bombardier Q400’s.
Additionally, eight Airbus A330’s have been reconfigured to introduce our Premium Economy Class to the
flying public. With these fleet enhancements, along with a major expansion of new hubs in the
Philippines, they increased connectivity across our wide route network, both domestically and
internationally.

 Product Upgrades and Innovations

Their promise to deliver world-class products and service innovations starts with enhancing the PAL
Cabin Experience, whether you’re flying Business Class, Premium Economy or Economy Class. This means
new and better seats for your long-range flights, upgraded meals and onboard amenities, and a
state-of-the-art inflight entertainment system to help you enjoy your next flight with PAL.

 Facility Upgrades

When it comes to passenger experience, they make sure the journey is comfortable from the
moment you book, to the second you land. This is why they have upgraded the facilities in the airports by
renovating the look and feel of signages, check-in counters, transfer and waiting lounges. They have also
set up a Group Boarding system for more convenience. Business Class and Mabuhay Miles frequent flyers
also get to enjoy exclusive upgrades to the check-in and lounging experience.

Source: https://www.philippineairlines.com/en/AboutUs/flyPAL4Stars-making4star

Conclusion (Flaws)

The flaws that we have seen from this assessment is the inconsistency of Philippine Airlines in the
services that they are putting out which affects how they deliver their product to the passengers.
As a result of inconsistency many passengers complain about almost everything. If we are going to
base our assessment on Skytrax without being subjective, statistics would show that there is
something lacking with Philippine Airlines. From food, the comfortability of seats, the baggage
capacity, ground service, inflight service and most especially the fare price, Philippine Airlines has
more room for improvements.