Task Performance State of Local Airlines

Philippine Airlines
State of Local Airlines
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I. COMPANY BACKGROUND
Philippine Airlines, or PAL, is the national airline of the Philippines. PAL is the oldest and longest-serving
airline in Southeast Asia, having begun operations in February 1941.
Today, Philippine Airlines is a private enterprise controlled by PAL Holdings, one of the country's largest
conglomerates. Mr. Jaime Bautista is the current President and COO of the company.
PAL flies to and from 41 domestic airports and 58 overseas destinations as of March 2019.
Beginning in 2013, PAL began expanding its route network by introducing new routes and restoring
lines that had previously been terminated. The airline announced its return to Abu Dhabi, Dammam,
and Riyadh in 2013, as well as new routes to Brisbane and Perth (via Darwin), Doha, Dubai, and Jeddah.
After three years of discussions, PAL was removed from the EU aviation block list in 2013, and the
carrier quickly revealed its European intentions. Following that, PAL began flying between Manila and
Heathrow in November 2013, marking the airline's first European route in 15 years.
PAL currently serves the following international destinations: Auckland, Abu Dhabi, Bandar Seri Begawan,
Bangkok, Beijing, Brisbane, Busan, Cairns, Chengdu, Chongqing, Dammam, Darwin, Denpasar, Dubai,
Fukuoka, Guam, Guangzhou, Hangzhou, Ho Chi Minh City, Hong Kong, Honolulu, Jakarta, Kuala Lumpur,
Kuwait City, London, Los Angeles, Macau, Manama, Melbourne, Nagoya, Osaka, Perth, Phnom Penh, Port
Moresby, Quanzhou, Riyadh, San Francisco, Seoul, Shanghai, Singapore, Sydney, Taipei, Tokyo, Toronto,
Vancouver, Xiamen.
PHILIPPINE AIRLINES MISSION, VISION & VALUES
MISSION
Philippine Airlines has been awarded a world-class grade for demonstrating high-quality performance
across 45 global quality parameters on product and service quality.
VISION
It's the latest confirmation of something we've always known in our hearts: that we, Filipinos can
produce world-class achievements and providing world-class goods.
VALUES
Performance, High quality, Excellence, Commitment
II. MANAGEMENT AND OPERATIONAL CHALLENGES

OR ISSUES
With more experienced management teams, airlines are becoming safer, more efficient, more
lucrative. However, the airline industry will undoubtedly experience difficulties. Because of its
worldwide nature, the sector is particularly vulnerable to a variety of factors, including poor
infrastructure, pandemics such as COVID-19, and politics. However, the airline industry is not without
flaws. Even though profitability is stable, airlines continue to face challenges. In fact, they've gotten
more complicated.
♥ The domestic wrong-turn may not be retrievable
The PAL Group's domestic market share loss is certainly irreparable. While the move might enhance
the PAL Group's profitability in the price-sensitive home market, where both of its brands have been
losing money for some time, the company will be unable to develop as quickly as its competitors
without a discount brand. As a result, the company's market share will continue to decline, potentially
affecting profitability in the long run.
Without a cheap brand, the PAL Group will struggle to grab more than 30% of the Philippine home
market in the medium to long run. While it doesn't have any full-service competitors on main routes, the
Philippine market is notably price vigilant. Due to the reclassification of AirPhil/PAL Express, this will fall,
but it will progressively rise as other LCCs pursue faster expansion than the PAL Group.
♥ The threat of travelers with fake COVID tests

Criminals are increasingly selling phony negative Covid-19 test results to take advantage of travel
restrictions enforced during the pandemic. There has been an upsurge in the number of incidents of
tourists being sold fake Covid-19 test certificates. It comes as an increasing number of countries,
including the Philippines, require tourists from high-risk areas to submit a negative corona virus test to
be admitted. Fake test results are just one example of the wide spectrum of deception that has
emerged throughout the pandemic.
♥ The collapse in travel demand and persistent travel restrictions on most

global and domestic routes.
After eight months of lockdowns, PAL is currently operating on less than 15% of its typical number of
daily flights. PAL president Lucio Tan injected approximately P6 billion into the airline in the first half of
the year to keep it viable as losses reached P20 billion. According to the International Air Transport
Association, global aircraft traffic will drop by 66% in 2020. Traffic will not recover to pre-pandemic levels
until 2024, according to the report.
♥ Cancellation of flights and delays due to Maintenance
Philippine Airlines must prioritize maintenance and ensure that planes are adequately serviced without
causing delays to passengers' schedules. Unfortunately, flights are frequently delayed due to
maintenance overruns, causing inconvenience to passengers. This is a problem that Philippine Airlines
frequently encounters. Individual flights are impacted by security concerns and may be canceled due to
a lack of security clearance. They put a lot of effort into making their planes ready for the voyage.
Furthermore, routine maintenance checks are performed on their aircraft to guarantee that they are
functioning. When there's a chance to fix the plane in a reasonable period, a cancellation due to
mechanical concerns is often preceded by a delay. If the airline fails to do so, the flight will be canceled.
However, the corona virus pandemic was by far the leading cause of airline cancellations in 2020. Air
traffic has been substantially reduced to limit the spread of the virus, and many travelers' trip plans have
been canceled.
III. MANAGEMENT AND OPERATIONAL SOLUTIONS

♥ Complying with all applicable government laws/regulations
Subject to space constraints, Philippine Airlines will try its utmost to adhere to social distancing
procedures inside the aircraft. Individuals and families travelling as part of the same household can still
request to be seated together.
Passengers who violate any applicable laws, rules, or government regulations of any country to be flown
from, to, or over may be denied transportation by Philippine Airlines. The passenger is exclusively
responsible for confirming and following all applicable government laws/regulations of all
destinations/countries to be flown from, to, or through, according to PAL's Conditions of Carriage. PAL is
not responsible for the passenger's failure to follow the laws/regulations, or for any assistance or
information provided here or by a PAL agent or employee in accordance with the laws/regulations.
♥ Solution to Delayed and Cancelled Flights
Many major airlines, including Philippine Airlines, have suspended, limited, or eliminated flights to
impacted areas to prevent the spread of the new coronavirus (COVID-19). Service is being cut to/from
high-risk countries and markets where airlines are experiencing significant declines in demand, as well
as places where the government has enforced travel restrictions. If your flight with Philippine Airlines
was canceled due to coronavirus, you are entitled to the following benefits:
* A full refund of your ticket or;
* An alternative flight (once the flights are rescheduled)
Because the coronavirus outbreak is considered an extraordinary condition, it is beyond the PAL's control
and hence they are not obligated to provide compensation. This includes flights to and from any areas
where a travel advisory or ban has been issued. Airlines must adhere to travel regulations while also
protecting their passengers' and crew's health and safety.
♥ Solution to the threat of travelers with fake COVID tests

For everyone's safety, airlines and authorities are watchful in refusing to accept travelers with bogus
RT- PCR or Antigen test results. To avoid the conditions, Philippine Airlines should reiterate its resolve to
collaborate with government officials in the fight against COVID-19, for the purpose of safe air travel
and a healthy Philippines. Furthermore, anyone found with a fraudulent COVID test should be
prosecuted for falsifying public documents and violating RA 11332, the Mandatory Reporting of
Notifiable Diseases and Health Events of Public Health Concern Act. If found guilty, they could face fines
of up to $50,000 or imprisonment for one to six months.
♥ Workforce reduction as solution to the collapse in travel demand and
persistent travel
They face a big problem in losing the PAL owing to the COVID-19. The retrenchment program, which
combines voluntary and involuntary separation, was originally announced by PAL in October 2020 as a
remedy. The airline has previously stated that layoffs will occur in the fourth quarter of 2020. To avoid
job cuts, it used furloughs and flexible working arrangements. According to PAL, the layoff is being
implemented following a thorough examination. It's part of PAL's attempt to recover from the epidemic,
which devastated the worldwide airline industry. PAL has stated that it will assist affected employees in
finding other jobs. Despite the reduction in its employees, the flag carrier stated that as demand returns,
it will progressively boost international and local flights.

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Philippine Airlines

State of Local Airlines

Performance, High quality, Excellence, Commitment

II. MANAGEMENT AND OPERATIONAL CHALLENGES

♥ The threat of travelers with fake COVID tests

♥ The collapse in travel demand and persistent travel restrictions on most

III. MANAGEMENT AND OPERATIONAL SOLUTIONS

* A full refund of your ticket or;

* An alternative flight (once the flights are rescheduled)

♥ Solution to the threat of travelers with fake COVID tests

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