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Philippine Airlines

From Wikipedia, the free encyclopedia
Flag carrier of the Philippines
This article is about the airline based in the Philippines. For a full list of all active Philippine-based airlines, seeList of airlines of the Philippines.
Not to be confused withPAL Airlines orPAL Airlines (Chile).

Philippine Airlines
Philippine AirlinesBoeing 777-300ER
IATAICAOCall sign
PRPALPHILIPPINE
FoundedFebruary 26, 1941; 84 years ago (1941-02-26)
(asPhilippine Air Lines)[note 1]
Commenced operationsMarch 15, 1941; 84 years ago (1941-03-15)
AOC #2009001[4]
HubsManila
Secondary hubs
Frequent-flyer programMabuhay Miles
SubsidiariesPAL Express
Fleet size48[5]
Destinations73[6] (including PAL Express)
Parent companyLT Group
(PAL Holdings, Inc.)
Traded asPSEPAL
HeadquartersLucio K. Tan Jr Center,Andrews Avenue,Pasay, Philippines
Key people
FounderAndrés Soriano
RevenueDecrease170.38 billion (2024)
Operating incomeDecrease₱9.44 billion (2024)
Net incomeDecrease₱8.12 billion (2024)
Total assetsDecrease₱213.26 billion (2024)
Total equityIncrease₱42.89 billion (2024)
EmployeesIncrease 6,520 (2024)
Websitephilippineairlines.com
Notes
Financials are from thePSE.[9]

Philippine Airlines (PAL) is theflag carrier of thePhilippines.[10] The airline was founded in 1941 and is the oldest operating commercial airline in Asia.[11][12][13][note 2]

Philippine Airlines launched its first flight on March 15, 1941, using aBeechcraft Model 18 aircraft fromManila toBaguio. After a brief suspension duringWorld War II, the airline resumed operations in 1946 and became the first Asian airline tocross the Pacific, with a flight from Manila toOakland, California. PAL was designated as the country's flag carrier in the late 1940s and expanded rapidly in the decades that followed. In 1966, PAL wasprivatized when then-chairman Benigno Toda Jr. acquired a majority stake. However, in 1977, the airline was re-nationalized when theGovernment Service Insurance System obtained the majority of its shares. The airline underwent privatization again in 1992, when it was purchased by a group led by Antonio Cojuangco. Subsequent ownership changes occurred, with businessmanLucio Tan eventually becoming the majority stockholder in the mid-1990s.[14]

Over the years, PAL has undergone periods of expansion and restructuring, responding to economic downturns, fuel price volatility, and regional competition. The airline has implemented multiple modernization programs focused on fleet renewal, route expansion, and service upgrades. In February 2018,Skytrax recognized Philippine Airlines as a four-star airline.[15]

The airline's main flight operations are based atNinoy Aquino International Airport inMetro Manila. It primarily operates international routes across Asia, North America, and Oceania, along with select domestic sectors—includingCebu,Davao,Cagayan de Oro,Iloilo, andGeneral Santos—while the majority of domestic flights are operated by its subsidiary,PAL Express.[16][17]

History

[edit]
Main article:History of Philippine Airlines

Philippine Airlines (PAL) was established on February 26, 1941, asPhilippine Air Lines, following the acquisition of its operational franchise from thePhilippine Aerial Taxi Company (PATCO) by a group of businessmen led byAndrés Soriano andRamón J. Fernández.[3]

Once among Asia's largest carriers, PAL was significantly impacted by the1997 Asian financial crisis. Facing substantial financial losses, the airline undertook major restructuring measures: terminating services to Europe and the Middle East, suspending most domestic routes except those operating from Manila, reducing its fleet size, and laying off thousands of employees. In September 1998, PAL ceased operations temporarily and enteredreceivership. Operations resumed in October 1998, and over time, the airline reinstated many of its domestic and international routes. PAL successfully exited receivership in 2007 after implementing a rehabilitation plan approved by theSecurities and Exchange Commission.[18] Subsequently, the airline has undertaken several management restructurings aimed at reestablishing its position as a leading carrier in the Asia-Pacific region.[19]

Corporate affairs

[edit]
The entrance to the former Philippine Airlines head office in Pasay

Philippine Airlines is owned by PAL Holdings (PSEPAL), aholding company responsible for the airline's operations. PAL Holdings is part of a group of companies owned by business tycoonLucio Tan.ANA Holdings, the holding company ofAll Nippon Airways, holds a stake of less than one percent in PAL Holdings.[20]

Since early 2024, the airline (along with its parent holding company, PAL Holdings, Inc.) has been headquartered at the Lucio K. Tan Jr. Center, alongAndrews Avenue inPasay.[21] In 2017, PAL was the ninth-largest corporation in the Philippines in terms of gross revenue, as ranked byBusinessWorld.[22] As of December 31, 2024, PAL had 6,520 employees.[23]

In 2007, PAL was the 61st largest airline in the world by revenue passenger kilometers (RPKs), recording over 16 billion RPKs from 21 billion available seat kilometers (ASKs), with an average load factor of 76 percent.[24]

Business highlights

[edit]
Philippine Airlines/PAL Holdings business highlights[23]
Financial performance (PHP billions)
Fiscal year20142015201620172018201920202021202220232024
Revenue100.9107.2114.5129.5150.5154.555.358.7139.2179.1178.0
Expenses98.698.4104.8132.2156.5151.781.862.8121.9151.0160.0
Income before tax0.36.77.1−6.5−7.4−11.2−65.953.710.621.89.4
Net income0.16.74.9−6.5−3.7−9.7−73.160.610.421.38.1
Assets109.2114.4125.3179.9199.1317.8227.9193.8206.0219.7213.3
Liabilities105.5104.3111.2166.0188.4312.9296.0192.2194.2186.4170.4
Equity3.710.114.113.910.74.9−68.11.611.833.342.9
Operating highlights
Fiscal year2015201620172018201920202021202220232024
Passengers (million)11.913.314.515.916.73.92.99.314.715.6
Available seats (million)17.519.220.320.521.86.86.812.918.119.7
Load factor (%)68.369.271.477.476.556.742.672.081.079.1
RPK (million)28,30132,50336,97340,00342,32911,8737,68024,86035,33835,377
ASK (million)41,43946,99651,79351,68255,30820,91818,02334,53843,73444,737

Note

  • Data before 2014 were excluded from the table as figures before that year were compounded using a different fiscal year period.

Destinations

[edit]
Main article:List of Philippine Airlines destinations

In 1980, Philippine Airlines operated flights to several European destinations, such asAmsterdam,Athens,Frankfurt,London–Gatwick andRome–Fiumicino.[25] Following the1997 Asian financial crisis, PAL terminated a number of its long-haul routes. In 1998,Cathay Pacific temporarily operated some of PAL's international services for a 14-day period during the latter's operational shutdown.[26]

Philippine Airlines building inSydney

In 2010, theEuropean Union (EU) imposed a ban on all Philippine-based carriers, citing regulatory concerns, despite favorable safety assessments from theInternational Civil Aviation Organization.[27][28] The ban was lifted in 2013, allowing Philippine Airlines to resume European operations. That same year, PAL relaunched flights toLondon–Heathrow in 2013 using aBoeing 777-300ER. On October 29, 2018, the airline inaugurated non-stop service toNew York–JFK with anAirbus A350-900, marking one of thelongest commercial flights in the world at the time.[29]

As of 2025, Philippine Airlines operates 41 international and 32 domestic routes. Its regional subsidiary,PAL Express, handles the majority of the airline's domestic operations.

Codeshare agreements

[edit]

Philippine Airlinescodeshares with the following airlines:[30][31]

Philippines Airlines hasinterline agreements with the following airlines:

Fleet

[edit]
Main article:Philippine Airlines fleet
Aircraft of Philippine Airlines parked next to the maintenance hangars of Lufthansa Technik Philippines

As of May 2024[update], Philippine Airlines mainline aircraft has a fleet size of 49 (excluding 28PAL Express aircraft) with a mix ofAirbusnarrow-body andwide-body aircraft andBoeing wide-body aircraft.[40]

Branding

[edit]
icon
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Logo

[edit]

The Philippine Airlines logo changed four times since the company's founding. Its first logo incorporated a blue oval with "PAL" superimposed in white letters, a four-pointed star with points intersecting behind the "A" in PAL, and a wing whose orientation varied depending on the location of the logo. The wing pointed to the right if located on the left side of the plane, and to the left if on the right side. A variant of this logo featured a globe instead of the blue oval with the superimposed PAL initials. It was used from the 1950s through the mid-1960s.

The second logo adopted a blue triangle with the bottom point missing and a red triangle superimposed upon it, enclosed by a circle. This was meant to evoke a vertically displayednational flag with white forming by the negative space between the two triangles. In the mid-1970s, a third logo was introduced that removed the circle and simplified the shape. The typeface used in the third logo was later applied to the second logo and remained the official PAL logo until 1986.

The current PAL logo features the same two blue and redsail triangles used in the second and third logos. An eight-rayed yellow sunburst was superimposed on top of the blue triangle, and a newHelvetica typeface was used.

  • 1950–1960
    1950–1960
  • 1960–1970
    1960–1970
  • 1970–1986
    1970–1986
  • 1986–present
    1986–present

Livery

[edit]
A Philippine AirlinesAirbus A330-300 arrives inFrancisco Bangoy International Airport.

PALliveries have undergone many incarnations. The first PAL aircraft bore a simple white-top, silver-bottom livery separated by solid straight cheatlines, with a small Philippine flag superimposed on the tail. The name "Philippine Air Lines" was superimposed on the upper forward portion of the fuselage and the PAL logo was located at the back. Later variants of the livery, especially on PAL jet aircraft, made use of an extended Philippine flag as cheatlines, with the PAL logo superimposed on the tail. By this time, the name "Philippine Airlines" was used in the livery.[41]

Another variant of the original livery used by PAL is somewhat similar to the current livery. However, it uses PAL's third logo on the tail with blue, white, and red cheatlines running the center of the fuselage. Later on, the bottom half of the fuselage was also painted white

The current "Eurowhite" livery, first used with theShort 360, was adopted in 1986 following PAL's corporate rebranding. This livery, (designed byLandor Associates) has "Philippines" superimposed on the forward portion of the fuselage in italics (using the PAL logo typeface), while the tail is painted with the logo and the Philippine flag is visible near the rear of the aircraft. The PAL logo is also painted on thewinglets of aircraft that have them. The name "Philippines", instead of "Philippine Airlines", is to denote that PAL is the primary flag carrier of the Philippines. However, this sometimes leads to confusion that a PAL plane, especially when chartered by thePresident for official or state visits, is, in fact, theofficial air transport of the Philippine head of state. Any PAL aircraft with the flight number"PR/PAL 001" and the callsign"PHILIPPINE ONE" is a special plane operated by Philippine Airlines to transport the President or Vice President of the Philippines. The flight number"PR/PAL 002" and the callsign"PHILIPPINE TWO" are used if the Vice President travels simultaneously with the President. As such, thepresidential seals are patched on or near the L1 and R1 doors of any PAL aircraft chartered by thepresident.

For the airline's 70th anniversary in 2011, a special decal was placed on all of its aircraft. The sticker featured a stylized "70" and the words, "Asia's first, shining through". For its 75th anniversary in 2016, a special decal was put on the back of every aircraft. The sticker features a stylized "75". PAL also placed a 4-starSkytrax sticker on its aircraft to celebrate its new rating.

Philippine Airlines A350-900

In February 2019, Philippine Airlines rolled out its fifthAirbus A350 aircraft with a LoveBus decal that represents the 40th anniversary of its partnership with Airbus and to celebrate the airline's signature heartfelt service. The kiss-marked LoveBus logo was also placed in 1979 on one of PAL'sAirbus A300s that represented their first year of partnership with Airbus. Its LoveBus A350 was rolled out from the paint shop and was accepted on February 14, 2019,Valentine's Day. PAL took delivery of it three days later, and held a welcoming ceremony atNinoy Aquino International Airport Terminal 2.[42]

Frequent-flyer program

[edit]
Mabuhay Miles logo

Mabuhay Miles is Philippine Airlines'frequent-flyer program. It was established in 2002 after merging all of PAL's existing frequent flyer programs before the Asian financial crisis.[43] Mabuhay Miles are divided into multiple tiers: Classic, Elite, Premiere Elite, and Million Miler.Philippine National Bank (PNB) issues co-brandedcredit cards,debit cards, andprepaid cards that offer benefits such as free mileage points, travel insurance, priority check-in, access to a Mabuhay Lounge, and discounts when booking flights on the Philippine Airlines website.[44] Prior to PNB,HSBC offers co-branded HSBC Philippine Airlines credit card.

Mabuhay Lounge

[edit]
icon
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The Mabuhay Lounge is the airport lounge for Philippine Airlines. Business Class and Elite Members of Mabuhay Miles can use the lounge. These lounges have open bars, food catering, Wi-Fi, and charging ports for personal electronic devices. On June 27, 2018, Philippine Airlines unveiled a new Mabuhay Lounge for international business class, million millers, premier elite, and elite passengers at Terminal 2 ofMactan–Cebu International Airport.[45]

As of September 2023, the Mabuhay Lounge can be found at the following airports:Ninoy Aquino International Airport Terminal 1 (Intl.) and Terminal 2 (Domestic),Puerto Princesa International Airport,Bacolod–Silay Airport,Mactan–Cebu International Airport,Laguindingan Airport,Francisco Bangoy International Airport,Iloilo International Airport, andSan Francisco International Airport.[46]

In-flight services

[edit]

Cabin

[edit]

Philippine Airlines currently offers three classes of service: Business, Premium Economy, and Economy, depending on the aircraft. ItsAirbus A330s andAirbus A350s offer three classes, while its other aircraft offer two classes.[47][48] On September 15, 2022, the airline rebranded its premium economy service to Comfort Class for its domestic flights.[49]

In 2017, PAL reconfigured the cabin layout of eightA330s, from a single class 414-seater into a 309-seater tri-class with Business, Premium Economy, and Economy sections.[47] The reconfigured A330s were rolled out within seven months in 2017.[50] The IFEs were Zodiac's RAVE system.[51] The seats were designed by Lift Strategic Design,[51][52] andLufthansa Technik Philippines performed the reconfiguration.[47]

The previous aircraft acquired had no embeddedin-flight entertainment (IFE), except for Boeing 777-300ERs. Instead, they offered rentable (Economy) or complementary (Business) iPad Minis withOnAir's wireless IFE solution, OnAir Play.[53] New aircraft have embedded IFE, due to the failure of PAL's wireless IFE program for long-haul flights.[52] They still offer wireless IFE on all aircraft.

Business Class

[edit]
Business Class seats on an Airbus A330

Business Class is available on all aircraft. It offers increased legroom and lie-flat seats on the Airbus A330, Boeing 777, Airbus A350, and select Airbus A321neo aircraft.[54] Philippine Airlines is the only Philippine carrier to offer business class on domestic flights. On medium-haul and long-haul flights, Philippine Airlines provides amenity kits fromL'Occitane en Provence.[55]

Seats on the earlyBoeing 777s feature angled-flat seats manufactured byRecaro, while some of the latest aircraft feature lie-flat seats byZodiac Aerospace (nowSafran), arranged in a 2-3-2 configuration. ReconfiguredAirbus A330s and the Airbus A350s feature lie-flat seats manufactured by Thompson Aero Seating, in a seating configuration of 1–2–1. A350 and A330 Business Class seats also feature Lantal air cushions, a four-way headrest, a storage shelf for personal belongings, a headphone hook, and a padded inner shell that absorbs noise.[52]

Seats feature 15-inch (Boeing 777), 18.5-inch (Airbus A330 and Airbus A350), and 15.4-inch (Airbus A321neo)[52][56] personalin-flight entertainment monitors with video on demand, as well as in-seat power. The seats feature aUSB port where passengers can charge mobile devices.[57][58] Passengers are also given noise-cancelling headphones. Select Airbus A321neos also feature lie-flat seats manufactured byRockwell Collins (nowCollins Aerospace), arranged in a 2-2 layout.[56] They have a 60-inch seat pitch and a maximum seat width of 23 inches when fully flat.[56] Business Class seats on Airbus A321ceos recline and have a seat pitch of 39 inches (99 cm). They feature a laptop power supply (both AC and USB).

Premium Economy Class seats on an Airbus A330

Premium Economy

[edit]

Premium Economy (known asComfort Class for domestic flights since September 2022[59]) is available on the Airbus A330 and Airbus A350,[54] as well as PAL Express flights using two-class Airbus A320s. The seats are similar in design to standard economy class seats but feature at least four to five inches of additional legroom, providing a minimum legroom of 34 to 36 inches.

Reconfigured A330s, as well as A350s, have a different seat design with a layer of extra padding. It is 9.55" wide, pitched at 38 inches with eight inches of recline.[51] The seats also feature a 13.3-inch screen-flight entertainment unit with video on demand, a headphone jack, a USB port, and in-seat power.[52] On aircraft without IFE, passengers are also treated to complimentary iPads.[53]

Economy Class seats on an Airbus A330

Economy Class

[edit]

Economy class is available on all aircraft.Tray tables are found in the back of the seat in front, except for bulkhead and exit seats, where tray tables are embedded in the seats. They have four-way headrests. The seats offer a pitch that varies between 31 and 34 inches.[48][60] Each seat offers video on demand and is equipped with 9-inch (Boeing 777) or 10-inch (Airbus A330, Airbus A321neo) monitors with a headphone jack and USB port for charging.[52][48] They have four-way headrests and six inches of recline. An articulating seat bottom cushion comes with extra foam under the seat cover.[52]

Accidents and incidents

[edit]
Main article:List of Philippine Airlines accidents and incidents

Although Philippine Airlines aircraft have been involved in a string of accidents since its founding in 1941, the majority of airline accidents have occurred with propeller aircraft during the airline's early years of operations. Few PAL jet aircraft have been involved in accidents, the most notable being the explosion onboardPhilippine Airlines Flight 434, masterminded byal-Qaeda throughProject Bojinka.

Safety

[edit]

In February 2007, PAL was the first airline in the Philippines to be accredited by theInternational Air Transport Association, passing theIATA Operational Safety Audit (IOSA).[61] Philippine Airlines has the highest safety rating of 7/7 according to AirlineRatings.com and was rated a safer airline than some of its Southeast Asian counterparts.[62][63]

Issues

[edit]

Financial issues

[edit]

PAL experienced significant financial losses in the late 2000s. On March 31, 2006, PAL's consolidated total assets amounted to ₱100,984,477, a 200% decrease from March 31, 2010. On March 31, 2013, the company's consolidated assets continued to diminish by 8%, an amount equivalent to ₱92,837,849, compared to 2007 figures. The decline of PAL's assets was primarily due to a net decrease in property and equipment and advance payments to aircraft and engine manufacturers. On March 31, 2001, other current and noncurrent assets fell by 29% to ₱2,960.4M and by 20% to ₱2,941.7M "due to the effect of re-measurement to the fair value of certain financial assets and derivative instruments".[64] After carrying 17% more passengers in 2009 due to acquisition of additional aircraft and growth in the local market, PAL annual income report showed an increase in revenues of US$1.634 billion from US$1.504 billion in 2008. Despite this, PAL expenses escalated as a result of more flight operations and higher maintenance costs aggravated by fuel price fluctuations; forty-four percent (44%) of PAL income operating expenditures is utilized for fuel consumption.[65]

Labor issues

[edit]

PAL has a history of labor relations problems. On June 15, 1998, PAL retrenched 5,000 employees, including more than 1,400 flight attendants and stewards to reduce costs and alleviate the financial downturn in the airline industry. Represented by the Flight Attendants and Stewards Association of the Philippines (FASAP), retrenched employee sought remedy through the judicial process, filing a complaint on the grounds of unfair labor practices and illegal retrenchment. It took a decade before the suit was finally settled. It passed the Labor Arbiter to the National Labor Relations Commission, then on to the Court of Appeals, and the Supreme Court. The Philippine Highest Tribunal favored the aggrieved party and on July 22, 2008, in its 32-page decision ordered PAL to:

Reinstate the cabin crew personnel who were covered by the retrenchment of and demotion scheme of June 15, 1998, made effective on July 15, 1998, without loss of seniority right and other privileges, and to pay them full back wages, inclusive of allowances and other monetary benefits computed from the time of their separation up to the time of actual reinstatement, provided that those who have received their respective separation pay, the number of payments shall be deducted from their back wages.

The Supreme Court ruling explained that there was a failure on the part of PAL to substantiate its claims of actual and imminent substantial losses. Although the Asian financial downturn severely affected the airline, PAL's defense of bankruptcy and rehabilitation was considered untenable; hence, the retrenchment policy was deemed unjustified.[66] On March 26, 2018, the Supreme Court en banc voted in favor of Philippine Airlines, which affirms the 2006 Court of Appeals decision that says Philippine Airlines is not required to consult FASAP for its criteria for its retrenchment program.[67][68]

Competition

[edit]

For more than twenty years, PAL monopolized the air transport industry in the Philippines. This ended in 1995 through the passage of Executive Order No. 219 which permitted the entry of new airlines into the industry. Theliberalization and deregulation of the Philippine airline industry brought competition into the domestic air transport industry resulting in lower airfares, improvements in the quality of services, and efficiency in the industry in general. At present, three airlines are competing in international and major domestic routes: PAL,Cebu Pacific, andPAL Express.[69] Several airlines serve the minor and short-distance routes includingPhilippines AirAsia andCebgo.[69]

See also

[edit]

Notes

[edit]
  1. ^While the airline considers 1941 as its founding year, its earliest predecessor—the Philippine Aerial Taxi Company (PATCO), from which it acquired its operating franchise—was established nearly 11 years earlier, on December 3, 1930 (1930-12-03).[1][2][3]
  2. ^AlthoughAir India could claim to be Asia's oldest airline if considered a continuation of Tata Air Services (later Tata Airlines), which was founded in 1932, the modern-day airline was only established in 1946—five years after Philippine Air Lines (now Philippine Airlines). Furthermore, even if the histories of predecessor companies were taken into account, PAL would still be older than Air India, as its forerunner, the Philippine Aerial Taxi Company (PATCO), was founded in 1930—two years before Tata Air Services.

References

[edit]
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