I. Executive Summary Philippine Air Lines also known as PAL, is the flag carrier and national airline of the Philippines, headquartered in the Philippine National Bank Financial Center in Pasay City. Philippine Airlines maintains aircraft with the highest degree of airworthiness, reliability and presentability in the most cost-effective manner; and conduct and maintain safe, reliable and cost-effective flight.
It continues to achieve on-time performance on all flights it operates, as well as providing safe, on time, quality and cost effective in flight service for total passenger satisfaction. The Philippines Airlines offers services at reasonable, competitive prices, and at the highest level of quality consistent with such prices. It meets the needs of the public for moving people, goods, information, and in particular for safe and reliable travel, transport, communication, distribution, and related services.
The company’s products and services is the core company’s strength since these are what they mainly offer and, in return, where the company generates its profit. On the other hand, the decline in the number of the passengers carried placed the major weakness of PAL since the passengers are relevant to the revenue the company could earn. The Philippines has high levels of economic, political and financial system risk. This impressive result continues the encouraging and positive trend reflects the Philippines Government’s impressive efforts on fiscal management.
Also, the public and international confidence will strengthen further and provide confidence to the international investors that there is no economic risk of doing business in Philippines. Philippine Airlines is performing well above average in the Philippine airline industry. It significantly indicates that the company has a strong internal position. This means that PAL has an above-average-ability to respond to external factors that could affect the operations of the company.
Also, PAL has a strong competitive position in the market with rapid growth thus; it needs to use its internal strengths, take advantage of external opportunities, overcome internal weaknesses, and avoid external threats to develop a market penetration and market development strategy. This can include product development, integration with other companies, and acquisition of competitors. On the other hand, PAL still has to improve itself with regards to the critical success factors.
In order for the Philippine airlines to hold and maintain its position in the industry the company should pursue strategies focused on increasing market penetration and product development. It should also maximize revenue generation in passenger and cargo sales through increased yields by diversifying market segments and efficient management of seat inventory and cargo space. II. Introduction Philippine Air Lines also known as PAL, is the flag carrier and national airline of the Philippines.
Headquartered in the Philippine National Bank Financial Center in Pasay City, the airline was founded in 1941 and is the oldest commercial airline in Asia operating under its original name. Out of its hubs at Ninoy Aquino International Airport of Manila and Mactan-Cebu International Airport of Cebu City, Philippine Airlines serves nineteen destinations in the Philippines and 24 destinations in Southeast Asia, Middle East, East Asia, Oceania and North America. On March 1941, Philippine Airlines (PAL) began to soar in the Philippine sky with one noble mission: to serve as a factor in building a better nation.
With this in mind, notwithstanding the threats of World War II, PAL took off and became Asia’s first airline. Since then, with its every takeoff and touchdown, PAL carries with itself the making of a world-class legacy. With almost 70 years of service, PAL did not fail in becoming one of the world’s most respected airlines with its young and modern fleet of aircraft and destinations that cover 31 foreign cities and 29 domestic points. Its excellent service and world-class accommodation help PAL win the hearts of travelers worldwide and pierce those of its competitors. Today, PAL has led the trend in the aviation industry.
Aside from its young and modern fleet of aircraft and modern facilities, it has also one of the most extensive computer systems and radio communications networks in the Philippines. Also, PAL has been cited with several awards and recognition including being the only airline in the Philippines to be accredited with the IOSA (IATA Operational Safety Audit) by the International Air Transport Association and to receive a 3-star rating by Skytrax in terms of cabin staff, airline, airline lounge, in-flight entertainment, on-board catering, and several other elements of air travel.
And just recently, PAL also emerged the most trusted airline brand for Filipino consumers, according to an annual Asia-wide survey by the respected international publication Reader’s Digest for 9 consecutive years since 2002. Realizing how its loyal passengers contribute to its success, PAL continuously aims to excel to serve its market better amidst the threats of economic crisis and fuel price inflation. However, with proper planning and management, success for PAL would not be that impossible.
Mission: To serve as a partner in nation-building. Corporate Officers: Lucio C. Tan Chairman & Chief Executive Officer Ramon S. Ang President & Chief Operating Officer Harry C. Tan Treasurer Estelito P. Mendoza Corporate Secretary Irene M. Cipriano Assistant Corporate Secretary Erwin C. Go Corporate Compliance Officer & Assistant Corporate Secretary Daniel Ang Tan Chai Chief Financial Officer Rafael Rollan Officer in Charge – Commercial Group Ismael Augusto S. Gozon SVP – Operations Group