History of Philippine Airlines - Wikipedia
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The re-fleeting program enabled PAL to be dubbed the first airline in the world to operate the full range of new-generation Airbus aircraft. InPAL rebranded itself as "Asia's sunniest airline" to cap its new marketing and advertising thrust. The acquisition of too many aircraft matched with unprofitable routes forced the airline to be financially unstable. The re-fleeting program was about halfway through when the full impact of the Asian financial crisis struck the airline industry early in However, no agreement was reached with the Hong Kong-based airline.
On October 29, the flag carrier resumed international services with flights to Los Angeles and San Francisco, with other international services being restored three weeks later. With the aviation industry still in the doldrums, PAL continued to search for a strategic partner but in the end, it submitted a "standalone" rehabilitation plan to the SEC on December 7, The plan provides a sound basis for the airline to undertake a recovery on its own while keeping the door open to the entry of a strategic partner in the future.
PAL presented the new proposed rehabilitation plan to its major creditors during a two-week marathon meeting that started on February 14 in Washington D. InPAL submitted its amended rehabilitation plan to the Securities and Exchange Commission that comprised a revised business plan and a revised financial restructuring plan. Full domestic operations operated from the new terminal on August 10, while international services followed soon after, thus consolidating PAL's flight operations in one terminal for the first time.
On September 1,PAL formally handed over its ownership of its maintenance and engineering division to German-led joint venture Lufthansa Technik Philippines LTPthe world's largest provider of aircraft maintenance services in accordance with the provisions of its rehabilitation plan, which mandates the disposal of the airline's non-core assets. InPAL continued to gain a net profit of P million in its second year of rehabilitation.
But, inPAL was restructured again. A Philippine Airlines Airbus A in Service to Amsterdam remained, operated by KLM. PAL also continued an overhaul of its fleet with the arrival of two new Airbus As and continued modernizing its ticketing systems with the launch of electronic ticketing. It was the first aircraft in the airline's history to offer AVOD-capable inflight entertainment on its Mabuhay Class cabin. In December, the airline initiated its wide-body re-fleeting program by signing a deal with Boeing for the purchase of two Boeing ER aircraft to be delivered inwith an option for two more planes in The purchase of the new ERs effectively cancelled previous orders for new s, ending the production of said aircraft.
Philippine Airlines was named "Airline Turnaround of the Year" for and by the Centre for Asia Pacific Aviation for its "strategic contribution to the aviation industry through a significant transformation by successfully restructuring its operations through innovative cost-cutting measures resulting in operating profits". The airline immediately announced plans to attract foreign investments through an international road show to tour around Asia, Europe and North America.
Despite PAL's successful exit from receivership, international safety concerns regarding the Philippine aviation industry severely hindered its expansion plans. The United States Federal Aviation Administration downgraded the Philippines' aviation industry from Category 1 to Category 2 in Januarypreventing PAL from increasing its flights to the United States from 33 per week or from switching the type of aircraft used unless the airline undertakes a wet-lease agreement with a different carrier.
Philippine Airlines Flight - Wikipedia
Nonetheless, PAL continued its route expansion plans in the Asia-Pacific region, resuming services to Riyadh with a four times weekly Boeing service four years after it was suspended, as well as adding a twice weekly Airbus A service to Brisbane and three-times-weekly service to Delhi via Bangkok.
Flights to Brisbane and Riyadh were suspended inand the Manila-Bangkok-Delhi route ended in ; however service to Brisbane and Riyadh resumed in the same year. Due to the inability for PAL to further expand its long-haul network, the airline launched service to its existing long-haul routes including Tokyo, Los Angeles and Vancouver. Labor disputes[ edit ] In July25 of Philippine Airlines' pilots resigned and left to seek employment abroad without informing the airline. After calls to return to work by both the airline and Philippine Government, PAL subsequently sought to file charges against the pilots involved for breach of contract.
Disputes with flight attendants, ground crew, airport staff as well as reservation agents escalated, with threats of potentially disruptive strike action, which took place in October. San Miguel, one of the Philippines' biggest conglomeratessaid it planned to help modernise and strengthen PAL, renew its aging fleet and restore its competitiveness in the Asian aviation industry.
San Miguel president Ramon Ang also announced intentions to join a global airline alliance. The A was ordered to enhance domestic and regional routes, while the As are to be flown on Australian, Middle Eastern and some European routes. PAL took delivery of its first aircraft under this order in Under San Miguel's management, PAL embarked on expanding its route network, involving both adding new and restoring previously terminated routes. In addition to its fleet modernization and route expansion, PAL announced plans to become an investor within the aviation industry following the San Miguel partial acquisition.
Inthe airline entered into negotiations with Cayman Airways for a 50 percent equity share in the Caribbean -based airline. As part of the proposed scheme, Cayman Airways will use the fresh capital to acquire new aircraft which will then be leased out to Philippine Airlines under a wet lease agreement. The planes will be registered and domiciled in the Cayman Islandsand to be flown, operated and maintained completely by Cayman Airways. The new airline was originally expected to commence operations by Junehowever no services have been launched as of September.
In MarchPAL postponed the project indefinitely citing government restrictions on airline corporate ownership of Philippine airports. But it maintained that Ang, as president of PAL, remains, along with the rest of his team, "until the relevant closing date of the agreement" between the parties.
Under Bautista's rule, Philippine Airlines deferred the deliveries of the Airbus Aneo that was supposed to be delivered from November under the San Miguel management.
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