Take Off or Touch Down?

Strengths
 In 2000, it had a fleet strength of 35 aircraft
 Launched several other new aircraft, with new, younger, and more dynamic in flight
crew

Weaknesses
- Unnecessary interference by the CAAP was a major cause of concern for APP
- Interference ranged from deciding on the new crew’s quality to major technical
decisions in which the CAAP did not event have the necessary expertise
- APP found grossly deficient in realistic assessment of the manpower needs, need-based
recruitment, optimum personnel utilization and abolition of surplus and redundant
posts
- APP eight unions were notorious for their defiant and their use of unscrupulous
methods to force management to agree to all their demands
- Strikes, go-slow negotiations and wage negotiations were common
- Each had a different reason, but every strike was about pressuring APP for more money
- From Oct 1991 – August 1995, there 9 agitations by different unions
- Poor strategies adopted by APP – given management’s position in making peace with
the unions rather than looking at the company’s long term benefits
- Mr. James Tan

Opportunities
 APP and its subsidiary, Metro Air, provide domestic air services
 APP’s network ranged from Philippines in the west of Qatar in the east, covering 57
destinations (45 within the Philippines, 12 abroad)

Threats
 Corporate houses entered the fray and APP saw a mass exodus of its pilots to other
commercial airlines
 Competitors like Asia Air and Jet Air provided better severe criticism for its inefficiency
and excessive expenditure human resources
 Staff cost increased alarmingly during 2000-2004 – these costs were responsible to a
great extent for the company’s frequent losses
 By 2005, while APP’s market share was 47%, the share of other commercial airlines
reached 53%

Others
- To counter increasing competition, APP launched a new image building advertisement
campaign
- Improved its services by strictly adhering to flight schedules and providing better in-
flight and ground services