LEAN and mean, but also very nimble. That’s how flag carrier Philippine Airlines has been described by its top sales officer as it navigates the new normal in an industry that was among the hardest hit by the Covid-19 pandemic.
One adjustment: tweaking the revenue stream to derive income from cargo. “We are now a cargo airline.” Thus said Dina May Flores, vice president and OIC Head of Sales for the pioneering flag carrier.
Speaking at the recent Business Assembly of the Pacific Asia Travel Association (PATA) Philippines chapter, she said, “We will no longer be dependent on passenger traffic as a single revenue stream. We have revised our network to allow for hybrids like carrying exclusively cargo on one way and then carrying passengers on the return leg of the round-trip flight.”
One of its major accomplishments, she said, was flying in more than 70 million doses of Covid-19 vaccines to the country and carrying them to domestic destinations.
The Lucio Tan-led carrier exited Chapter 11 in late December, wiping out some $2 billion in debts, just in time for its 81st anniversary this year.
“We are still alive and given a new chance to thrive. PAL is smaller than we used to be with a fleet and route network, but we have streamlined to fit the new normal, but we will continue to be a full-service [carrier],” she underscored.
The carrier has global links to North America, the Middle East and most of Asia, with connections to its extensive domestic network and hubs in the country, she noted. PAL also has unique non-stop routes and offers code sharing and interlining schemes with airline partners.
“We will tap new markets that make strategic sense. We have to apply good business sense to all our plans and efforts, and every route must pay its own way. There will be no costly prestige routes,” Flores stressed. PAL recently dropped its direct flights to London due to its unprofitability. (See, “Ukraine-Russia conflict may give PAL reason to drop London route,” in the BusinessMirror, March 7, 2022.)
Tel Aviv flights
Despite the carrier’s recent announcement of flights to Tel Aviv, Israel, the PAL official said there still was no definite date when these will actually be launched. “Tel Aviv is a developmental route for us. We want to make sure it actually makes sense [to fly there]. So when [the flights will commence] is still a question mark.”
For now, she said the carrier is focusing on increasing its frequencies to its existing international markets and domestic destinations.
Flores said PAL has to forge more partnerships to ensure the tourism industry’s recovery. A decline in the quarantine business, she said, “will be replaced with more sustainable gains from arriving volumes of foreign guests. Airlines and agents can collaborate to help generate business.” As such, it has partnered with Guide to the Philippines, a web-based travel and tour operator. “We are keen to build seamless, travel packages, that combines flights with hotel stays, testing and insurance services, and defying travel experiences,” she added.
PAL will also target promotions to China, Japan, South Korea, Australia, Canada and the US, and other Asian neighbors, “once we see a removal of remaining restrictions,” she said. The carrier has partnered with the Department of Tourism in line with its 81st anniversary, promoting a seat sale for international and local destinations. “The markets will not bounce back by themselves. They will need our help,” Flores said.
Mabuhay Miles reboot
She said the carrier will also forge ties with the Department of Transportation “as [it] continues to build up airport infrastructure all over the Philippines. The new Bicol airport, was the latest new area done, but we’ve seen brand new or refurbished terminals open in Clark, General Santos, Puerto Princesa, Zamboanga, and other airports.”
PAL is likewise “reinvigorating” its Mabuhay Miles program, “with more ways to earn flight status and experiences. In line with [PAL’s] anniversary, Mabuhay Miles is expanding its partnership that would allow customers to earn miles on simple, everyday [purchases], all the while getting a step closer to your destination,” she said.
Founded in 1973, PATA-Philippines has 100 “carefully selected” members from the airlines, travel agencies, hotels, tour operators, resorts, tourism-related government agencies and foundations, and higher education institutions.
Image credits: Thor Jorgen Udvang | Dreamstime.com