Philippine Airlines Inc. (PAL) yesterday unveiled plans to expand its network and to focus on digital innovation while pivotting to be a cargo-driven airline for future growth and opportunity.
PAL recently emerged from a successful restructuring with $505 million in fresh capital, $2-billion debt reduction and a streamlined fleet. It also unveiled a youthful 21st century outlook as it celebrated its 81st anniversary yesterday.
“We look forward to a comeback year for Philippine Airlines and for our country,” said Dr. Lucio Tan, PAL chairman and chief executive officer.
“Our 81st birthday marks a day of rebirth for PAL. 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,” Tan added.
Tan said PAL 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. It will focus on digital innovation.
“We envision PAL as a tech company, using technology to deliver smarter and simpler products that customers will love,” Tan said.
For example, PAL pivoted to become a cargo-driven airline. It converted passenger aircraft into virtual freighters without taking out any seats, allowing it to fly all-cargo services to prime markets.
PAL said its cargo network helped keep supply chains going and trade flowing, a vital boost for the economy.
Tan sees revenue growth potential in the cargo business as the airline generated $193 million in cargo revenues in 2018 with 100 aircraft, while in 2021, with only 50 fleets, PAL reached its highest cargo revenue level in history, projected to surpass $300 million.
With a robust cargo strategy, PAL said it is deploying more all-cargo flights to develop key international cargo markets, especially between Asia and the United States, Canada and Australia.
Cargo innovations will include a new cargo mobile app and website, more online payments and cashless pay options, the airline added.
For its digital innovation, PAL said it will enhance the travel experience by rolling out this year 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.
With the reopening of international borders in progress along with the easing of local travel restrictions, the flag carrier announced plans to transform PAL’s Mabuhay Miles frequent flyer club into a bigger lifestyle program where members can earn miles on a wider variety of non-flying activities.
The airline said it will further expand its network for the upcoming summer season, covering a total of 39 international and 27 domestic destinations.
PAL also plans to expand partnerships with other airlines, building on current alliances and interline arrangements that allow its customers to reach over 1,000 destinations.
“Philippine Airlines will continue to be a full-service network airline that offers unique nonstop routes and a choice of business and economy products for our customers,” said Captain Stanley Ng, PAL president and chief operating officer.
“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,” added Ng.
PAL also unveiled its biggest sale of the year, offering fares of as low as $81 for international flights and P181 for domestic flights, now on sale until March 21.
