Philippine Airlines

Philippine Airlines

IATA ICAO Callsign PR PAL PHILIPPINE
Founded	March 15 1941
Hubs	Ninoy Aquino International Airport (Manila) Mactan-Cebu International Airport
Frequent-flyer program	Mabuhay Miles
Subsidiaries	Air Philippines PAL Express
Fleet size	35 (+24 orders, +2 lease orders)
Destinations	48
Parent company	PAL Holdings, Inc.
Headquarters	Pasay City, Philippines
Key people	Lucio Tan (Chairman and CEO) Mariano Tanenglian (Vice-Chairman) Jaime Bautista (President and COO)
Website	http://www.philippineairlines.com

Philippine Airlines (abbreviated PAL, PSE: PAL), also known historically as Philippine Air Lines, is the national airline of the Philippines. It is the first commercial airline in Asia and the oldest of those currently in operation, with a long and distinguished history spanning over sixty years. Out of its main hub at Ninoy Aquino International Airport in Manila, Philippine Airlines serves eighteen destinations in the Philippines and twenty-six destinations in Southeast Asia, East Asia, Australia, Canada and the United States, while maintaining flights to South Korea and Japan from Mactan-Cebu International Airport in Cebu City.

PAL was severely affected by the 1997 Asian Financial Crisis, forcing the airline to downsize its international operations by completely cutting operations to Europe and eventually Southwest Asia, cutting virtually all domestic services excluding routes operated from Manila, reducing the size of its fleet and terminating the jobs of thousands of employees. The airline was placed under receivership in 1998, gradually restoring operations to many of the destinations it formerly serviced. PAL exited receivership in 2007 with ambitious plans to further restore services to its previously-serviced destinations, as well as diversify its fleet.

Philippine Airlines is the first and only airline in the Philippines to be accredited with the IOSA (IATA Operations Safety Audit) by the International Air Transport Association and has been awarded a 3-star rating by Skytrax.

History

Early beginnings

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Philippine Airlines DC-3

Philippine Airlines was founded on February 26, 1941, making it Asia's oldest carrier still operating under its current name. The airline was started by a group of businessmen led by Andres Soriano, hailed as one of the Philippines' leading industrialists at the time, who served as the General Manager, and former Senator Ramon Fernandez as Chairman and President. Government investment in September of the same year paved the way for its nationalization.

The airline’s first flight took place on March 15, 1941 with a single Beech Model 18 NPC-54 aircraft, which started its daily services between Manila (from Nielson Field) and Baguio. On July 22, the airline acquired the franchise of the Philippine Aerial Taxi Company. PAL services were interrupted during World War II, which lasted in the Philippines from 1942 to 1945. Upon the outbreak of the Pacific war on December 8 1941, the two Model 18s and their pilots were pressed into military service. They were used to evacuate American fighter pilots to Australia until one was shot down over Mindanao and the other was destroyed on the ground in an air raid on Surabaya, Indonesia.

On February 14 1946, PAL resumed operations after a five-year hiatus with services to 15 domestic points with five Douglas DC-3s and a payroll of 108 names. Philippine Airlines returned to its original home, the Nielsen Airport in Makati. The airport, heavily damaged during the war, was refurbished and modernized by PAL at a hefty cost of over PHP1 million. Nielsen soon became the premier airport in the country and was designated by the Philippine government as the official port of entry for all international flights. It had two runways of 7,000 feet (2,133 m) and 4,000 feet (1,219 m) length. The airport's first passenger terminal was a temporary one built around huts and later upgraded to a concrete structure. Nielsen Airport was operated by Manila International Air Terminal, Inc., a wholly owned PAL subsidiary.

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Philippine Airlines Vickers 784 Viscount

On July 31 of the same year, PAL the first Asian airline to cross the Pacific Ocean, when a chartered DC-4 ferried 40 American servicemen to Oakland, California from Makati City with stops in Guam, Wake Island, Johnston Atoll and Honolulu. A regular service between Manila and San Francisco was started in December the same year. It was during this time that the airline was designated as the country’s flag carrier.

A year later saw PAL head to Europe with the acquisition of more Douglas DC-4's. By 1948 PAL had absorbed the only other scheduled airlines, Far Eastern Air Transport and Commercial Air lines. Following the government's decision to make Nichols Field in Pasay City, the site of a former U.S. Air Force base, the new Manila International Airport (MIA), PAL was required to move its base of operations and passenger terminal there from Nielsen Airport. The transfer was accomplished over a five-month period from January 31 to June 28, 1948. PAL invested an additional PHP600,000 in ground installations and improvements to Nichols Field. The airport's international runway and associated taxiway were built in 1953.

In 1951, PAL leased a DC-3 named Kinsei to Japan Airlines, which led to the founding of the country's own national airline. In 1954, the Philippine government suspended all long-haul international flights, only to resume five years later, when the government decided that it was a matter of national policy. In three years, PAL started services to Hong Kong, Bangkok, and Taipei using Convair 340s that would later be replaced by the Vickers Viscount 784, which bought the airline into the turboprop age.

First expansion and modernization

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Philippine Airlines Fokker 50

In the 1960s, PAL entered the jet age, initially with a lone Boeing 707, that was later replaced with Douglas DC-8 aircraft leased from KLM. The aircraft were used for long-haul international flights to Europe and the United States. The DC-3 remained the mainstay of the domestic services as it expanded to a total of 72 points as airports were improved or opened, but most of the airline's rural air service was later stopped in May 1964. In May 1966, PAL started its first domestic turbojet services to the Cebu, Bacolod, and Davao using the BAC1-11. PAL was privatized in May 1966, when the Philippine government relinquished its share of PAL after Benigno Toda, Jr., the PAL board chairman from 1962, acquired a majority stake in the airline.

When President Ferdinand Marcos declared Martial Law, he implemented a one-airline policy. PAL was the lone surviving airline, absorbing Air Manila and Filipinas Orient Airways. On March 10, 1973 PAL was designated as the national flag carrier again. PAL continued expansion with the arrival of its first Douglas DC-10 in July 1974. Three years later, the Philippine government re-nationalized PAL, with the Government Service Insurance System holding a majority of PAL shares. In 1979, the Boeing 727 trijet, the Boeing 747-200, and the Airbus A300B4, dubbed the "Love Bus", joined the PAL fleet.

Between the years 1979-1981, as part of a comprehensive modernization program, PAL built a series of mammoth aviation-related facilities around the periphery of the MIA. These included:

• The PAL Technical Center (PTC) at the Balagbag area, consisting of two hangars under one roof, an engine overhaul shop, two engine test cells and test shops. The PTC's total area of 291,472 square meters is equivalent to a fair-sized subdivision.

• The PAL Inflight Center along MIA Road contains a fully equipped inflight kitchen capable of producing 9,000 meals daily.

• The PAL Data Center along Domestic Road is the core of the most extensive computer system and the largest communications network in the Philippines.

• The PAL Aviation School at the Maintenance Base Complex has complete flight deck and cabin-crew training facilities, including simulators for B737-300 and turboprop aircraft.

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Philippine Airlines Shorts 360 Sunriser

On April 2 1982, a PAL Boeing 747 arriving from San Francisco via Honolulu became the first aircraft to dock at the new international terminal in Parañaque City. The new PHP800 million terminal, located some two kilometers from the old terminal, had 17 air-bridges and a capacity of 4.5 million passengers annually. PAL's facilities at the new MIA covered more than 1,000,000 square feet (93,000 m²) and catered not only to the national flag carrier but also to many foreign airlines calling at Manila. PAL would later strengthen its cargo-handling capability by building a dedicated cargo terminal building adjacent to the MIA passenger terminal and installing cargo-refrigeration equipment in 1983. The new facilities, which catered mainly to international cargo services, enabled PAL to become a fully equipped cargo handler.

Following the "EDSA Revolution" in February 1986, Dante G. Santos became PAL president. He launched a massive modernization of the domestic fleet with the acquisition of the Shorts SD360 "Sunriser" in May 1987, the Fokker 50 in August 1988 and the Boeing 737-300 jet in August 1989.

In 1988, as the Manila domestic passenger terminal outgrew its capacity and ramp aircraft parking space became more scarce, PAL leased the hangar of the Philippine Aerospace Development Corp. and converted it into the PAL Domestic Terminal 2. The terminal, which opened in October 1988, served exclusively passengers of the airline's widebody Airbus A300 services. These were the flights bound for Cebu and Davao (General Santos and Puerto Princesa were added later on). At the same time, PAL also expanded and improved the Manila domestic terminal. The opening of the new facility cleared out the old terminal and provided greater convenience to passengers.

Re-privatization and second expansion

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Philippine Airlines Airbus A320-200. The A320 was the airline's first narrow body Airbus aircraft.

PAL was privatized again in January 1992, when the government sold a 67% share of PAL to a holding company called PR Holdings. However, a conflict as to who would lead PAL led to a compromise in 1993, when former Agriculture Secretary Carlos G. Dominguez was elected PAL president by the airline's board of directors. The BAC 1-11s were retired in May 1992, following completion of the deliveries of B737s, and the Shorts SD360s in September. In November 1993, PAL acquired its first Boeing 747-400. The new aircraft arrived at Subic Bay International Airport and was carrying then-President Fidel V. Ramos, who was headed home from the United States after an official visit. The 200-ton aircraft, one of the world's largest and most popular long-range aircraft continues to be the mainstay of PAL's Trans-Pacific services and its flagship aircraft. A new service between Manila and Osaka, launched in 1994, brought to 34 the number of points in PAL's international route network.

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Philippine Airlines Beechcraft 90 King Air

The PAL Domestic Terminal 2 was refurbished in 1995, with a number of facilities being added or improved, including a renovated Mabuhay Lounge, an exclusive check-in counter for Mabuhay Class passengers, an Express Counter, refreshment bar, a medical clinic, an expansive waiting lounge and two baggage carousels in the arrival section. PAL facilities at NAIA were also renovated. The total cost for the renovation of the domestic terminal (1 and 2) reached P33.15 million while the NAIA renovation totaled P125 million.

In January 1995, Lucio C. Tan, the majority shareholder of PR Holdings, became the new chairman and CEO of the airline. The delivery of the carrier's fourth Boeing 747-400 in April 1996 signaled the start of an ambitious US$4 billion modernization and refleeting program that aimed to make PAL one of Asia's best airlines within three years. The centerpiece of the program was the acquisition of 36 state-of-the-art aircraft from Airbus and Boeing between 1996 to 1999. The refleeting sought to give PAL the distinction of having the youngest fleet in Asia and allow the expansion of its domestic and international route network. The 36 orders of PAL during its refleeting program comprised of eight Boeing 747-400, four Airbus 340-300, eight Airbus 330-300 and twelve Airbus 320-200. The refleeting program enabled PAL to be dubbed the first airline in the world to operate the full range of new-generation Airbus aircraft.

Asian financial crisis

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This Philippine Airlines McDonnell Douglas MD-11 leased from World Airways was a part of a massive re-fleeting program. But over-expansion and a dispute with the employee's union shut down operations.

In 1997, PAL rebranded itself as "Asia's sunniest airline" to cap its new marketing and advertising thrust. In addition to its refleeting program, PAL commenced service to New York City (using Newark Liberty International Airport) via Vancouver. However, this caused the airline to be financially unstable, having acquired too many aircraft while matching them to unprofitable routes. The refleeting program was about halfway through when the full impact of the Asian financial crisis struck the airline industry early in 1998. By March 31, 1997, at the end of the 1996-1997 fiscal year, PAL had reported its largest annual loss of P8.08 billion.

PAL's financial difficulties were compounded by a series of labor disputes that began when the pilots' union staged a three-week strike in June 1998. This was followed by a strike by the ground personnel union on July 22, which ended four days later with the signing of a deal between the union and management. However, PAL's lingering financial troubles continued to take their toll and on June 19, 1998, the company filed for receivership with the Securities and Exchange Commission, which then appointed a committee to oversee the rehabilitation of the flag carrier. Services to Europe, under the helm of General Manager Heinz van Opstal, were discontinued, with staff dismissals and the closure of PAL's European offices. The airline downsized its operations as the Asian financial crisis dragged the region's once-vibrant economies into recession in 1998. The fleet was reduced from 53 to 22 aircraft with the elimination of all turboprop aircraft, eliminating PAL's rural air service and causing the dismantling of its Cebu City hub. With massive lay-offs also taking place, disputes between the airline’s owners and the employee’s union led to a complete shutdown of PAL's operations on September 23, 1998, with Cathay Pacific temporarily taking over PAL's domestic and international operations. Cathay Pacific also showed interest in acquiring a 40-percent stake in PAL during this period but no agreement was reached.

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The airline's flagship Boeing 747-400 and an Airbus A320-200

PAL flew once again on October 7, 1998 after an agreement between PAL employees and top management, reported to be facilitated by then-President Joseph Estrada, was reached, with services to 15 domestic points out of Manila. 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. Asian services resumed on November 11 with flights to Tokyo and Hong Kong. PAL gradually expanded its network over the next two months, restoring services to Taipei, Osaka (via Cebu), Singapore, Fukuoka, Dhahran, Riyadh and Seoul. 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, 1998. 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 15 in Washington D.C. and ended on March 1 in Hong Kong.

In 1999, PAL submitted its amended rehabilitation plan to the Securities and Exchange Commission that comprised a revised business plan and a revised financial restructuring plan. The plan also required the infusion of US$200 million in new equity, with 40% to 60% coming from financial investors and translating to no less than 90% ownership of PAL. That same year, with the unprecedented boom in air travel, PAL operations were moved to the new Centennial Terminal 2 of Ninoy Aquino International Airport, located at the site of the old MIA terminal building. On August 9, 1999, PAL moved selected domestic flights to the P5.3 billion terminal. 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.

Receivership and rehabilitation

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A PAL Airbus A340-300. PAL was the first airline in the world to operate the full range of new-generation Airbus aircraft.

In 2000, PAL finally returned to profitability, making some P44.2 million in its first year of rehabilitation, breaking some six years of heavy losses. On September 1, 2000, PAL formally handed over its ownership of its maintenance and engineering division to German-led joint venture Lufthansa Technik Philippines (LTP), the 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. In August of the same year, PAL opened an e-mail booking facility. In 2001, PAL continued to gain a net profit of PHP419 million in its second year of rehabilitation. In this year alone, PAL restored services to Sydney, Busan, Taipei , Jakarta, Vancouver, Ho Chi Minh City, and Bangkok, while launching new services to Shanghai and Melbourne. A year later, PAL restored services to Tagbilaran and Guam.

PAL's Mabuhay Miles frequent flyer program was launched in 2002, combining PAL's former frequent flyer programs, PALSmiles, Mabuhay Club, and the Flying Sportsman (now SportsPlus) all into one. The PAL RHUSH (Rapid Handling of Urgent Shipments) Cargo service was also re-launched during the same year. An online arrival and departure facility and a new booking system were launched in 2003. In December, PAL also acquired a fifth Boeing 747-400.

In 2004, PAL launched services to Las Vegas to mark its 63rd year of service. PAL also returned to Laoag and started services to Macau on an agreement with Air Macau. The airline also saw a return to Europe with the return of the airline to Paris and Amsterdam on agreements with Air France and KLM Royal Dutch Airlines. The service to Paris, however, was inevitably cut, due to the merger between Air France and KLM. PAL also continued an overhaul of its fleet with the arrival of two new Airbus A320s and continued modernizing its ticketing systems with the launch of electronic ticketing. For the first time in history, the airline flew President-elect Gloria Macapagal-Arroyo and Vice-President-elect Noli de Castro to their inauguration in Cebu City. Arroyo rode a chartered PAL Airbus A330-300, while de Castro was aboard a separate Airbus A320, should something happen to the President's aircraft.

In March 2005, PAL started services to Nagoya and restored scheduled flights to Beijing after a 15-year hiatus. In response to rival Cebu Pacific's increasing domestic market share, mainly due to its massive re-fleeting program and the its own aging Boeing 737 fleet, PAL signed an agreement for the purchase and lease of up to 18 brand-new Airbus A319s and A320s from Airbus and GE Capital Aviation Services (GECAS) on December 6, 2005.

A PAL Airbus A319, one of the newest aircraft in its fleet.

The first of brand-new GECAS-leased Airbus A319s were delivered and inaugurated by PAL and Philippine President Gloria Macapagal-Arroyo in October 20, 2006. It is the first aircraft in the airline's history to offer AVOD-capable inflight entertainment. Later in December, the airline initiated its wide-body re-fleeting program by signing a deal with Boeing in Honolulu for the purchase of 2 Boeing 777-300ER to be delivered in 2009, with an option to purchase 2 more planes in 2011. PAL also signed a separate order with GECAS to lease another 2 Boeing 777-300ER for Delivery in 2010. The new order also cancels the airline's long-standing Boeing 747-400 order, effectively ending its production.

On February 2007, PAL became the country's only airline to meet the IATA Operational Safety Audit (IOSA). IOSA is the first global standard for airline operational safety auditing.

On June 27, 2007, PAL announced its interest in opening a new hub in Diosdado Macapagal International Airport (DMIA) by committing a US$50 million investment on airport infrastructure and planning on operating from the DMIA to Korea, Japan and China. The future PAL terminal in DMIA will be ready to accommodate the Airbus A380. Construction is scheduled to start in January 2008.

On July 2, 2007, PAL purchased 2 of the 3 Bombardier De Havilland Canada Dash 8 Q300s ordered by its subsidiary Air Philippines for delivery on November the same year. This move was caused by competition among Philippine carriers to service flights to the tropical island of Boracay.

On July 27, 2007, the airline signed a memorandum of understanding that opens the way for the introduction of flights to the southwestern Chinese metropolis of Chongqing, using the Chongqing Jiangbei International Airport.

The Securities and Exchange Commission of the Philippines, on October 4, 2007, ordered the release of flag carrier Philippine Airlines from receivership. This move came nine years after coming within a day of being liquidated amid mounting bills due to the Asian financial crisis of 1997. Moments after PAL’s formal exit from the rehabilitation, the airline announced plans to attract foreign investments through an International "Road Show" to tour around Asia, Europe and North America.

Philippine Airlines was named “Airline Turnaround of the Year" for the years 2006 and 2007 by the Centre for Asia Pacific Aviation (CAPA) 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".

On the 31st of March, 2008, Philippine airlines announced an order of 9 Bombardier aircraft, Three 50-seater Q300 and Six 78-seater Q400 aircraft at an estimated value of $150 million USD. The new aircraft are expected to increase flights to Boracay and are planned to introduce new flights from PAL's Cebu Hub.

Post-receivership and contemporary history

Despite PAL's successful exit from receivership, with the downgrading of the standard of Philippine aviation by the United States Federal Aviation Administration from Category 1 to Category 2 in January 2008, PAL president Jaime Bautista stated that as a consequence of the downgrading, its 2008 growth targets would be lowered. The FAA decision prevents 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. This is in spite of PAL efforts to expand its presence in the US market by opening new service to San Diego and restarting service to Chicago and New York City, as well as Saipan.

Its inability to expand its market presence in the United States did not hinder PAL from unveiling PAL Express, its new regional subsidiary, on April 14, 2008. Using its recently-ordered fleet of Bombardier DHC-8 aircraft, PAL Express will primarily fly intra-regional routes in the Visayas and Mindanao from Cebu City, as well as secondary routes to smaller airports in island provinces that are not able to accommodate PAL’s regular jet aircraft. The launch of PAL Express is a ground-breaking step for PAL as it not only marks the first time it is launching a sub-brand in its history but also marks the return of turboprop aircraft to the PAL fleet since the Asian financial crisis. PAL Express operations are scheduled to begin on May 5, 2008 with eight flights daily between Manila and Malay in Aklan, home to Boracay. Hub operations from Cebu City are scheduled to commence on May 19 with flights between Cebu and five points in the Visayas and Mindanao.

Corporate management

Philippine Airlines is owned by PAL Holdings, 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. PAL is the thirteenth-largest corporation in the Philippines in terms of revenue and the twenty-first largest in terms of assets, as stated in the Philippines' Top 500 Largest Corporations of 2005. As of January 2005, PAL employs a total of 7,322 regular employees, including 450 pilots and 1300 cabin crew. PAL is the sixty-first largest airline in the world in terms of revenue passenger kilometers flown, with over 16 million flown for 21 million available seat kilometers, an average load factor of 76 percent.

For the fiscal year ending on March 31, 2007, Philippine Airlines reported a net income of US$140.3 million, the largest profit in its 66-year history. This would pave the way for it to exit receivership by October 2007, which it did on October 4, 2007, with the auspices of the Securities and Exchange Commission. PAL is forecasting net profit to reach $32.32 million for the fiscal year ending on March 31, 2008, $26.28 million in 2009 and $47.41 million in 2010.

Major facilities

Philippine Airlines operates several aviation facilities in the Philippines. These include various training facilities for pilots and cabin crew, catering services, as well as a data center and a flight simulator.

Training facilities

Philippine Airlines maintains training facilities both for its pilots and other crew. This is composed of both the PAL Aviation School and the PAL Learning Center.

The PAL Aviation School, located within the premises of Diosdado Macapagal International Airport, provides flight training for its own operations and as well as for other airlines, the Philippine government and individual students. It currently operates five Cessna 172Rs and a Piper Seminole for student pilots' training with complete training facilities including simulators for the Boeing 737 and for turboprop aircraft. More than 5,000 students graduated from the PAL Aviation School, eventually joining the ranks of pilots at PAL and other airlines.

The PAL Learning Center, located in Manila, serves as the integrated center for Philippine Airlines' flight deck crew, cabin crew, catering, technical, ticketing and ground personnel.

Airport and cargo services

PAL also maintains integrated airport ground handling services, cargo operations and a full catering service for it and other airlines. This is composed of PAL Airport Services, Philippine Airlines Cargo and the PAL Inflight Center.

Based at both the Centennial Terminal (Terminal 2) and International Cargo Terminal of Ninoy Aquino International Airport, PAL Airport Services offers ground handling for seven international airlines calling at Manila, while Philippine Airlines Cargo processes and ships an average of 200 tons of Manila publications and 2 tons of mail daily throughout the country and 368 tons of cargo abroad daily.

Established in 1979, the PAL Inflight Center is the site of fully equipped in-flight kitchens and catering center of Philippine Airlines which also offer catering services for China Airlines, Japan Airlines, Korean Air and Northwest Airlines, producing some 6,500 meals daily.

PAL Data Center

Located in Pasay City, the PAL Data Center is the headquarters of the airline's information systems department, communications engineering and information technology hub. The center is the core of the Philippine Airlines' operations, having one of the most extensive computer systems and radio communications networks in the Philippines.

PAL Flight Simulator

Located at the PAL Maintenance Base Complex in Pasay City, the PAL flight simulator, designed to simulate a Boeing 737, can duplicate all flight conditions complete with sound and visual system capability for day, dusk and night.

Destinations

Further information: [[:Philippine Airlines destinations]]

Philippine Airlines International Routes

Internationally, Philippine Airlines mainly flies within the Asia-Pacific region with destinations in the United States and Canada often heavily marketed. PAL flies daily to over 24 international destinations including Manila. PAL also has an extensive domestic network offering multiple flights a day between Manila and selected Philippine cities.

Historically, PAL used to fly to destinations such as New York City, Europe and the Middle East, however due to financial difficulties and high fuel prices, PAL was forced to relinquish services to these areas (although PAL maintains some code-share agreements with carriers to continue services to these places). After rehabilitation, PAL flew to Riyadh, Saudi Arabia but had to suspend flights to the city due to an oversupply of seats, intense competition by Arab carriers and high fuel prices. PAL also flew non-stop from Honolulu to Laoag using its McDonnell Douglas MD-11 aircraft. This serviced the heavily populated Ilocano community in Hawaii. However, this service was discontinued when the airline shut down its operations in the latter part of 1998. In the future, PAL has expressed interest in increasing its frequencies to Canada and China and introducing flights to India, Europe, Cambodia, Nepal, Myanmar, New Zealand, Saipan, Seattle, Chicago, San Diego and New York City. Flights to Caticlan's Godofredo P. Ramos Airport, the primary entry point to Boracay Island, will be serviced through Air Philippines' Island Holidays Leisure Brand strategically scheduled to connect with PAL's international flights. .

New routes

Cebu

• Twice daily service to Bacolod, Negros Occidental, begins May 19 2008.
• Thrice daily service to Davao City, Davao del Sur, begins May 26 2008.
• Once daily service to General Santos City, begins May 19 2008.
• Twice daily service to Iloilo City, Iloilo, begins May 26 2008.
• Once daily service to Puerto Princesa, Palawan, begins May 26 2008.
• Once daily service to Tacloban, Leyte, begins May 19 2008.
• Once daily service to Butuan, Agusan del Norte, begins May 19 2008.
• Once daily service to Caticlan/Boracay, Aklan, begins May 19 2008.

Manila

• Five times weekly service to Macau, China, begins May 1 2008.
• Eight times daily service to Caticlan/Boracay, Aklan, begins May 5 2008.
• Once daily service to Busuanga, Palawan begins May 19 2008.
• Service to San Diego, California, USA, is pending government approval.

Electronic ticketing

In 2004, Philippine Airlines introduced electronic ticketing on flights between Manila and Cebu. By May 17, 2007, it was made available on all PAL-operated domestic and International flights, ahead of the End of 2007 deadline for 100% electronic ticketing set by IATA. Currently, PAL has interline e-ticketing agreements with 37 International Airlines, such as Air Canada, British Airways, Cathay Pacific, Continental Airlines, Delta Airlines, Emirates Airline, Japan Airlines, Northwest Airlines, Qantas Airways and Singapore Airlines among others.

Fleet

Philippine Airlines currently operates a total fleet of thirty-six modern widebodied and an all-Airbus narrowbodied passenger aircraft. As of 1 January 2008, the average age of aircraft in the fleet is 7.7 years. Philippine Airlines is the world's fifth youngest operator of the Airbus A319-100, with a fleet age of 0.6 years. PAL also operates nine turbo-prop aircraft through its subsidiary, PAL Express.

Philippine Airlines Fleet

Aircraft	Total	Passengers (First/Mabuhay/Fiesta)	Routes	Notes
Airbus A319-100	4	134 (0/8/126)	Domestic/international short haul Domestic, Southeast Asia	All fitted with new interior and Mabuhay class with AVOD and IFE
Airbus A320-200	14 (11 orders)	150 (0/12/138) 156 (0/12/144)	Domestic/international short haul Domestic, Asia, Micronesia	To be delivered: 2008-2012 Newer aircraft have been fitted with new interior and new Mabuhay class with AVOD and IFE
Airbus A330-300	8	302 (0/42/260)	Domestic/international short-medium haul Domestic, Asia, Australia
Airbus A340-300	4	264 (12/32/220)	Domestic/international short-long haul Domestic, Southeast Asia, Micronesia, North America	First class to be removed, all aircraft to undergo refurbishment, to be completed by 2009
Boeing 747-400	4	398 (32/40/326)	Domestic/international short-long haul Domestic, East Asia, Micronesia, North America	First class to be removed, all aircraft to undergo refurbishment, to be completed by 2009
Boeing 747-400M	1	433 (18/32/383)	Domestic/international short-long haul Domestic, East Asia, Micronesia, North America	First class to be removed, all aircraft to undergo refurbishment, to be completed by 2009
Boeing 777-300ER	(4 orders) (2 lease orders)	365	Ultra long haul	Entry into service: 2009
Bombardier Dash 8 300	(3 orders)	50 (0/0/50)	Domestic short haul Domestic	Entry into service: 2008, to be operated by PAL Express
Bombardier Dash 8 400	0 (6 orders)	76 (0/0/76)	Domestic short haul Domestic	Entry into service: 2008, to be operated by PAL Express

References: [1] , [2], [3], [4]

Future fleet

In May 2006, Philippine Airlines announced its medium-term fleet plan, covering fiscal years 2006 to 2011. The plan aims to increase and/or replace the current fleet with new additional aircraft for a complete fleet of 43 wide and narrow bodied aircraft at the culmination of the re-fleeting and expansion program. A major overhaul of the narrow-bodied fleet includes the phase out all remaining Boeing 737 aircraft by October 2007, maintaining instead a fleet of 20 brand-new Airbus A320-family aircraft from 2008 onwards. The wide-bodied fleet plan also looks to increase the current medium-haul fleet of eight Airbus A330 with two additional mid-range aircraft between 2007 and 2009, and the long-haul fleet of five Boeing 747 and four Airbus A340 with six additional long-range aircraft between 2007 and 2011.

On December 6, 2006, PAL signed an agreement with Boeing for two 777-300ER airplanes, with a purchase agreement for two more aircraft. A separate agreement to lease two Boeing 777-300ERs from General Electric Capital Aviation Services (GECAS) was signed as well. Deliveries will start in 2009. In May 2007, the airline exercised the rights for the two extra 777 Aircraft for delivery in 2011. However, due to the recent downgrade by the FAA to a Category 2 rating of the Philippine's air safety standards, PAL's officials conceded that delivery of these 777-300s may be delayed.

And in 2008, Philippine Airlines ordered De Havilland Dash 8 series Q300 and Q400 aircraft, three and six respectively, for Philippine Airlines' plan to initiate 8 daily flights to Boracay using the Q300 aircraft, and to various domestic routes such as to and from their hub in Cebu using the Q400 aircraft in PAL's plan to "beef up" its domestic presence.

Philippine Airlines has shown interest in acquiring future generation aircraft such as the Airbus A380, Airbus A350 XWB, Boeing 747-8 Intercontinental, and the Boeing 787-8 Dreamliner.

Former fleet

Airbus A300B4 Airbus A340-200 BAC One-Eleven Series 400 BAC One-Eleven Series 500 Beech Model 17 Beech Model 18 Boeing 707 Boeing 727-100 Boeing 737-300 Boeing 737-400 Boeing 747-200B Convair 340 De Havilland DHC-3 Otter Douglas DC-3

Douglas DC-4 Douglas DC-6 Douglas DC-8 Douglas DC-10 Fokker 27 Fokker 50 Hiller UH-12 Hawker Siddeley 748 McDonnell Douglas MD-11 NAMC YS-11 Noorduyn Norseman C-64 Scottish Aviation Twin Pioneer II Shorts SD360 Vickers Viscount 784

Fleet maintenance

The entire Philippine Airlines fleet of Airbus and Boeing jets are maintained by Lufthansa Technik Philippines or LTP, a joint venture of Hamburg-based Lufthansa Technik AG and Macro Asia Corporation of PAL majority-owner Lucio Tan. LTP bases its operations at the Balagbag hangar formerly owned and operated by PAL. The Lufthansa Technik Group is a leading maintenance provider in aircraft maintenance, repair and overhaul. Macro Asia Corporation is one of the Philippines' leading providers of aviation support services and catering for foreign airlines. The LTP has a four-bay hangar and workshops occupying 110,000 square meters in Manila’s Ninoy Aquino International Airport.

Brand

Livery and logo

File:PAL50.jpg

This logo was applied on the Convair 340 in the 1950s. A simplified design was used in the 1960s.

File:PAL60.jpg

This logo was the official logo of the airline from the mid-1960s up until 1986.

File:PAL-70.jpg

This logo was applied to aircraft during the 1970s and complemented the previous one. The typeface used here was later applied to the official logo.

The Philippine Airlines logo is inspired by the colors and design of the flag of the Philippines and consists of a blue and a red triangle, with an eight-rayed, orange-yellow sun imposed on the blue triangle, when the airline adopted its current corporate identity.

The name "Philippines" (in italics) marks the forward portion of the classic eurowhite fuselage, while the vertical stabilizer is painted with the logo and the Philippine flag is visible near the rear of the aircraft. The airline originally intended to put only "Philippines" instead of Philippine Airlines because of its status as the country's flag carrier, but has lead confusion to many people. This well-known livery has been in use since 1986, up to present.

PAL aircraft used for presidential-chartered flights for international head-of-state meetings have been also mistaken as the Philippine "Air Force One," due to the sole use of the word "Philippines" (Such flights are designated as PR 001).

Slogans and advertising

• Mabuhay
• Asia's First Airline
• Welcome Aboard the Philippines
• Shining Through
  • 1987 Advertisement
  • 1987 Advertisement
  • Cebu Advertisement
  • 1992 Advertisement
• On the Wings of Change
• Asia's Sunniest
• With You All the Way
• It's About Experience - is the current tagline of the airline and was introduced after its 60th Anniversary. It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name. The slogan was also used in the airline's ad spot featuring Kevyn Lettau, which incidentally featured her song, "Sunlight."
• Love at 30,000 Feet is the de facto theme song of the airline. It was composed by Jose Mari Chan and is still being used today. The song has many variations, including a version for the PAL's Swingaround tour package advertisement.

Mabuhay Miles

Mabuhay Miles is the Philippine Airlines frequent flyer program. It was established in 2002 by merging all existing PAL frequent flyer programs prior to the Asian financial crisis: namely, PALsmiles, the Mabuhay Club and the Flying Sportsman, with PALsmiles and Mabuhay Club members being moved to the new program on August 1, 2002. The Flying Sportsman program was subsequently transformed into SportsPlus, a a three-tiered, subscription-based program which gives extra baggage allocations for sports equipment on PAL flights, aimed specifically at golfers, bowlers, scuba divers, tennis and badminton players, anglers and cyclists.

Mabuhay Miles members earn miles that can be redeemed at face value on most Philippine Airlines-operated flights, as well as on code-shared routes of partner airlines. Some promotional fares and all flights operated by Air Philippines, however, are ineligible to earn miles. Miles may also be earned by patronizing the services of Mabuhay Miles partners, or by purchasing miles. Membership tiers include Mabuhay Miles Base, Elite, Premium Elite and Million Miler.

Mabuhay Miles Tiers

Tier Level	Benefits	Requirements
Base	Redeemable free flights and service class upgrades	1,000 Miles on eligible published fares with Philippine Airlines and partners.
Elite	25% bonus on actual miles flown for all flights on Philippine Airlines Mabuhay Lounge access and participating VIP lounges Priority reservation waitlist Priority check-in, boarding, luggage handling Priority airport standby (higher priority for a seat on the next available flight in case of flight cancellations) Additional luggage allowance of ten kilograms flying on Philippine Airlines-operated flights (except to/from the United States and Canada) SportsPlus Global and partner privileges	25,000 miles or 30 one way segments in Fiesta class or 15 one way segments in First or Mabuhay class within a calendar year
Premier Elite	Receive all the benefits of Mabuhay Miles Elite 75% bonus on actual miles flown traveling to and from the United States and Canada on Philippine Airlines For all other flights on Philippine Airlines, a 25% bonus on actual miles flown Receive 2 upgrade travel certificates Invite a traveling companion to the Mabuhay Lounge	45,000 miles or 50 one way segments in Fiesta class or 25 one way segments in First or Mabuhay class within a calendar year
Million Miller	Receive all the benefits of Mabuhay Miles Premier Elite Lifetime Premier Elite Membership Highest level of priority and recognition	1,000,000 miles accumulated from the beginning of one's membership

As of October 22, 2004, Philippine Airlines has 27 Million Milers.

Mabuhay Lounge

The Mabuhay Lounge is the Philippine Airlines airport lounge, serving passengers flying First Class and Mabuhay Class on Philippine Airlines flights, as well as members of the Mabuhay Miles Elite and Premier Elite membership tiers. There are eleven Mabuhay Lounges, with one each in Bacolod City, Iloilo City and General Santos City in the Philippines, and in Los Angeles and San Francisco internationally. There are two lounges at PAL's hubs in Manila and Cebu City, as well as in Davao City, with each lounge respectively catering to PAL's domestic and international passengers.

All Mabuhay Lounges offer light meals and refreshments. At the Mabuhay Lounges in Manila and Cebu City, as well as in Bacolod and Iloilo, amenities include large plasma-screen televisions, a business center equipped with telephones, a fax machine and personal computers with free, unlimited Internet access, as well as massage services. Wi-Fi internet service is available exclusively at the Mabuhay Lounges in Manila and Cebu City.

At destinations without a separate Mabuhay Lounge, customers may avail of the services offered by the VIP lounges of those airports.

Codeshare agreements

Philippine Airlines has codeshare agreements with the following airlines as of April 2008:

• Air Philippines
• Cathay Pacific
• Emirates
• Etihad Airways
• Garuda Indonesia

• Gulf Air
• Malaysia Airlines
• Royal Brunei Airlines
• Qatar Airways
• Vietnam Airlines

Cabin service

Philippine Airlines currently offers bi-class services on most aircraft, and mono-class service on selected Airbus A320-200 aircraft. The airline's inflight magazine, Mabuhay, is available on all classes. In 2006, in commemoration with the 60th anniversary of the First Transpacific Crossing by an Asian Airline, Philippine Airlines launched One by One in its First Class and Mabuhay Class service onboard transpacific flights. The new inflight meal service method recreates the "A la Carte" service where passengers can select their own meal from a variety of choices. "On Demand" service allows passengers to partake of their meals anytime during the flight.

Mabuhay Class (business class)

Mabuhay Class seats, available on all wide-bodied, A319 and most A320 aircraft offer increased legroom, advanced seat ergonomics and personal screens (the B737 and older A320s do not feature personal screens and instead the latter has drop-down LCD screens). The food service offers a selection of Western, Filipino and Japanese Kaiseki dishes offered on Japan-bound flights. The Mabuhay Class seats in the Airbus A319 and newer Airbus A320s offer Audio-Video On Demand, laptop power supply with a seat pitch of 39 inches (990 mm). Currently, Philippine Airlines is the only local carrier to offer business class on domestic flights. Amenity kits with toothpaste, hairbrush, knitted socks, slumber mask and toiletries from BVLGARI are provided on long-haul flights.

Fiesta Class (economy class)

On long-haul flights, a basic amenity kit with toothpaste, slumber mask and socks is distributed to passengers. Like the economy class seats in other carriers, the passenger's footrests and tray tables are found in the seat in front of them except for bulkhead and exit seats, where the tray tables are embedded in the seats and footrests are on the floor. All widebody aircraft in PAL's fleet have large video and smaller LCD screens mounted in certain parts of the cabin as well as overhead TV screens. A319s and A320s have drop down LCD screens. All aircraft feature rolling audio entertainment to Fiesta Class passengers.

Enhanced cabin

Philippine Airlines is the first airline in Asia to feature an enhanced cabin in its Airbus A320 family aircraft. The Mabuhay and Fiesta class seats in the A319 and upcoming A320s are fitted with sky blue upholstery with a wave-pattern in aqua blue and terracotta. The laminates at the fore and rear sections of the aircraft are decorated with a palm tree landscape design and the curtains, carpet and surfaces are in various shades of blue, white, gray, silver and tan.

Cabin modernization plan

In the second half of 2006, PAL announced a cabin reconfiguration project for its Boeing 747-400 and Airbus A340-300 aircraft. The airline is spending USD$85.7 million to remove the first-class section and increase the size of its business featuring cocoon-type lie-flat seats and economy cabins. Also, personal screens with AVOD will be made available comprehensively across both cabin classes. The cabin reconfiguration project is scheduled to begin in the third quarter of 2008. The new cabin configuration with the enhanced Mabuhay and Fiesta classes is also expected on the Boeing 777-300ER aircraft on order.

Incidents and accidents

Philippine Airlines is accredited by IATA with the IOSA (IATA Operations Safety Audit) (Accreditation February 2007). For full reports and complete list of incidents involving Philippine Airlines, see here[5].

Philippine Airlines Reported Incidents

Flight Designation	Date	Aircraft	Location	Description	Casualties
N/A	January 24, 1950	Douglas DC-3	Iloilo	The aircraft crashed en route to Iloilo's Mandurriao Airport.	Fatalities: 4
N/A	March 30, 1952	Douglas DC-3	Baguio City	Aircraft with registration number PI-C270 from Loakan Airport crashes upon takeoff	Fatalities: 10
N/A	January 14, 1954	Douglas DC-6	Rome, Italy	Crashed in Ciampino Airport in Rome while attempting to land in heavy turbulence, which led to an engine fire.	Fatalities: 16
N/A	November 23, 1960	Douglas DC-3	Manila	Crashed in Mount Baco while en route to Manila due to poor weather conditions.	Fatalities: 33
N/A	December 22, 1960	Douglas DC-3	Cebu City	Crashed in Mactan-Cebu International Airport upon takeoff after a failure of the number one engine.	Fatalities: 28
N/A	March 2, 1963	Douglas DC-3	Davao City	Crashed due to premature descent.	Fatalities: 27
N/A	February 21, 1964	Douglas DC-3	Marawi City	Crashed due to Pilot error, upon landing approach.	Fatalities: 31
N/A	June 29, 1966	Douglas DC-3	Sagalyan	Crashed due to crew error, severe turbulence and strong gusty winds.	Fatalities: 26
N/A	February 28, 1967	Fokker F-27 Friendship	Cebu City	Crashed in Mactan-Cebu International Airport during landing due to an aft center of gravity condition resulting from improper loading.	Fatalities: 12
N/A	July 6, 1967	Fokker F-27 Friendship	Bacolod City	Crashed	Fatalities: 21
N/A	September 12, 1969	British Aerospace One-Eleven	Antipolo City	Crashed short on a hill upon landing approach.	Fatalities: 45
Flight 215	April 21, 1970	Hawker Siddeley HS-748	Manila	Crashed in Nichols Field after a bomb exploded in the rear cargo section.	Fatalities: 36
Flight 463	November 28, 1972	Hawker Siddeley HS-748	Bislig City	Bounced and swerved on landing. The nosegear, wings, and propellers are severely damaged.	None
N/A	February 3, 1975	Hawker Siddeley HS-748	Manila	Crashed in Nichols Field in Manila after a fire developed in the number two engine shortly after takeoff. It was also due to crew error in their inability to deal with a standard emergency.	Fatalities: 33
N/A	April 18, 1977	Douglas DC-8	Tokyo, Japan	A DC-8-53 named "Champaca" (RP-C803) was written off after a landing accident at Haneda Airport.	None
Flight 206	June 27, 1987	Hawker Siddeley HS-748	Baguio City	Crashed into terrain while attempting to land in a monsoon, although the crew knew about the adverse flying conditions.	Fatalities: 50
N/A	December 13, 1987	Shorts 360-300	Iligan City	Crashed near Maria Cristina Airport.	Fatalities: 15
N/A	July 21, 1989	British Aerospace One-Eleven	Manila	Crashed in Ninoy Aquino International Airport when the aircraft overran the runway while landing, impacting several vehicles on an adjacent roadway.	Ground Fatalities: 8
Flight 143	May 11, 1990	Boeing 737-300	Manila	EI-BZG suffered an explosion in the center fuel tank near the terminal of Ninoy Aquino International Airport while preparing for takeoff. The fire and smoke engulfed the aircraft before it could be completely evacuated. The explosion was similar to what happened to the ill-fated TWA Flight 800 six years later.	Fatalities: 8
Flight 434	December 11, 1994	Boeing 747-200	Pacific Ocean	A small bomb exploded underneath the seat (seat 26K) of a Japanese businessman. The businessman died, but none of the aircraft's other 293 passengers and crew were killed. The aircraft landed safely. Investigators later found that Ramzi Yousef planted the bomb there to test it out for a terrorist attack he was planning, Project Bojinka. The plan was foiled after an apartment fire in Manila led investigators to the laptop computer and disks containing the plan.	Fatalities: 1
Flight 137	March 22, 1998	Airbus A320	Bacolod City	Crashed and overran the runway of Bacolod City Domestic Airport plowing through homes near it.	Ground Fatalities: 3
Flight 475	October 26, 2007	Airbus A320	Butuan City	The aircraft, with 148 passengers on board overshot the airport runway.	Injuries: 34

Hijackings

• On April 7, 1976, a BAC 1-11 was hijacked by Muslim rebels for seven days, demanding money and the release of imprisoned rebels. The aircraft ended up in Benghazi, Libya.
• On May 23, 1976, another BAC 1-11 was hijacked by Muslim rebels. The hijackers supposedly detonated a hand grenade in the cabin, which burned the aircraft killing 10 passengers and 3 hijackers.
• On May 25, 2000, Philippine Airlines Flight 812, en route from Davao to Manila, was hijacked by a man with marital problems. The hijacker was pulled out of the aircraft by a flight attendant and used a homemade parachute in escaping, with none of the other passengers and crew being injured or killed. The hijacker died when his parachute failed to deploy.

Other incidents

• On December 17, 2002, Philippine Airlines Flight 110, an Airbus A330-300 en route to Antonio B. Won Pat International Airport from Ninoy Aquino International Airport struck electrical cables on Nimitz Hill during a localizer approach to Guam.
• On April 7, 2004, Philippine Airlines Flight 847, a Boeing 747-400 en route from Ninoy Aquino International Airport in Manila to Mactan-Cebu International Airport in Cebu was forced to return to Manila after take-off due to technical problems experienced because of a bird that got stuck in the engine. Passengers were stranded at the airport for several hours.

Gallery

• 
  A Boeing 737-300 in Lumbia Airport in Cagayan de Oro City, Misamis Oriental
• A Philippine Airlines 747-400 plane at NAIA, taxiing to its gate.
  A Philippine Airlines 747-400 plane at NAIA, taxiing to its gate.
• 
  A Philippine Airlines flight taxiing to its gate at Incheon International Airport.

External links

Official website

• Philippine Airlines
• Mabuhay Miles

Regional PAL websites

• Philippine Airlines in Japan
• Philippine Airlines in Korea

Other websites

• Philippine Airlines Fleet Age
• Philippine Travel Guide