PHILIPPINE AIRLINES

1. EXECUTIVE SUMMARY
Philippine Airlines, also known as Pal, is an open airline of the Philippines and is headquartered at the National Bank of the Philippines
Money related Center in Pasay City. Philippine Airlines offers administrations at sensible and competitive costs and the most noteworthy
position of quality to coordinate the cost. Meet the public's need for movement of people, goods and information, especially safe and
dependable trip, transportation, communication, distribution and related services. The company's products and services are primarily
core commercial strengths that are handed and from which the company generates gains.
2. ENVIRONMENTAL ANALYSIS
Philippine Airlines operates a fleet of thirty-two modern wide and narrow body passenger aircraft, making it the Philippines' reliable
national airline. As stated in the mission statement, it is also known for delivering high-quality performance across 45 global quality
metrics on product and service quality
SWOT ANALYSIS
STRENGTHS WEAKNESSES
The Philippine Airlines has been in operation for 65 One of Philippine Airlines' weaknesses is the number
years, resulting in a strong interpersonal relationship and of declined passengers, which completely prevents them
the ability to communicate effectively with Filipinos. from earning profit that is relevant to the company's
Philippine Airlines' core strength is the goods and revenue. Furthermore, the faces labor issues as a result of
services. Additionally, its people and workforce play a the Philippine Airlines' consistent retrenchment program.
significant role in the company's success.
OPPORTUNITIES THREATS
Legacy system digitization helps in remaining market The impact of the Covid pandemic is one example of a
leader in the next decade. Also, the Philippine company threat. It caused many people to stay at home
development plan has been boosted in the past years, rather than go out. As well as, a number of emerging
creating numerous opportunities for businesses. business competitors within the country that have
undoubtedly captured the market's attention.

PESTLE ANALYSIS
• Political Environment
Philippine Airlines provides international flights that are primarily used by Filipinos to travel abroad or to foreign countries. And it said
that the government must establish safety precautions based on the number of passengers, which is an important part of the services.
Moreover, due to the business market's monopolistic attitude, the government established laws to control the airport industry.
• Economic Factor
Aircraft is a serious matter considering that, by nature, airlines can be dangerous and costly. A plane crash can occur, and the aircraft
could disappear with anyone not knowing where it is. Despite of this, the company continues to operate by charging much higher fares
to customers because of the gas expenses and especially, maintaining the aircraft as it best.
• Social Factors
Philippine Airlines fosters cultural diversity to the young population. And the fact that the airline provides services that are easy to
access to people from all over the world. Furthermore, it given a great service of Philippine Airlines, it opens new markets that are
beneficial to expanding the economy. This will result in a higher demand for employment in our country, which will be beneficial and
convenient for people.
• Technological changes
Nowadays, technologies innovation is rapidly increasing. With this, Philippine Airlines decided to offers a service for their customer,
which is the mobile services. It allows customers to book a flight as easier as possible, featuring functions that the customer would like
to have such as digital records, automated check in and etc. Also, ask related amenities about their services.
• Environmental Aspects
Philippine Airlines affects the environment because of its engines that emit gases, emissions, pollution and more. Resulting to contribute
to climate change and global dimming.
• Legal Issues
To avoid customer conflict, Philippines Airlines follows a set of laws and regulations. Taxes, fees, and charges are imposed by
government authorities on air transportation. These taxes, fees, and charges, which could be responsible for a significant portion of the
cost of air travel, are either included in the fare. Also, their customers may also be required to pay uncollected taxes, fees, or charges.
4. BEST PRACTICES
All of our customers can count on receiving a top-notch travel experience from Philippine Airlines. We work hard to provide what the
best for our customers and through consistent efforts to improve our service delivery and regular training of our staff, our goal is to give
customers an experience that they will remember us. With our customers in mind, we put an effort to improve our current systems and
procedures. Our commitment is to provide the needs and level of service that customers deserve.
Lowest Fare Offered
The lowest stated fare would depend on the date/time of booking, the duration of the ticket, the flight, and the desired service class. Our
personnel will always guide you as well as aid you in planning your flights.
Notifying Customers of Known Delays, Cancellations, and Diversions
We always make an effort to get you to your destination on time. However, there may be occasions when we have to postpone,
reschedule, or divert a flight because of unfavorable weather, operational or service concerns, or other circumstances beyond the airline's
control and by that we provide information on a change in the status of a flight to customers who have tickets or have reservations, as
well as the general public. We always give attention to your safety and well-being in mind as this is our foremost commitment.
Baggage Delivery
We make an effort to ensure that all of our passengers' luggage travels with them. We will make every attempt to deliver your luggage
within twenty-four (24) hours if there is a case of baggage mishandling, such as delayed or missing luggage. If a bag is lost, we will
reimburse passengers for any transportation costs that were incurred.
Expeditious Processing of Refunds
Refunds will be processed once PAL gets the entire set of necessary documentation, subject to ticket limits. Refund requests can be
made in person at any PAL ticket office agent or representative, or if the ticket was purchased online at www.philippineairlines.com, by
sending an email to onlinebooking_refunds@philippineairlines.com using the same email address. Applications for refunds for tickets
issued by a travel agent must be sent to the travel agent. When PAL receives a complete refund request it will process the refund
promptly, within seven (7) business days for credit card purchases and twenty (20) business days for cash and check purchases. This
includes paying back any fees for optional services that a passenger was unable to use and the net refund amount will be credited by the
bank or credit card company, subject to bank or company rules.
Accommodation of Passengers Needing Special Assistance
Regardless of whether a traveler has special requirements or a disability, our dedication to offering them a top-notch travel experience
will never waver. In accordance with PAL's policies and procedures, as well as any relevant governmental requirements and regulations,
we shall treat all of our passengers who require special assistance, including passengers with disabilities and unaccompanied youngsters,
with the utmost care and concern.
Customers’ Essential Needs During Lengthy Tarmac Delays
Our goal is to keep up with and/or improve our on-time performance (OTP). Although PAL has no control over these outside variables,
occasionally there may be significant tarmac delays due to safety concerns, bad weather, air traffic control, operations, and other issues.
PAL commits to exhaust efforts to ensure that customers’ essential needs are met by providing adequate food and potable water, operable
lavatories, and adequate medical attention.
6. STRATEGIC PLAN FORMULATION
Vision
“To be the airline of choice in all markets we serve and to be the source of pride for Filipinos everywhere.”
Mission
"Our mission is to deliver safe, reliable, efficient, and pleasant travel experience exceeding passenger expectations. We strive to
have cost leadership, technological superiority and uniqueness. We are committed to provide a satisfying career to our employees and
adequate returns to stockholders and communities, to emerge stronger than before and achieve our goal of becoming a more customer-
centric airline. We act with passion and aim for excellence to represent the best of the Philippines, the Best of Filipinos to the world."
Values
The mission and vision statement of Philippine Airlines shows the which you can specify how determined and sincere their
values. “We grow a successful and empowered team, we act with passion and aim for excellence, we embrace and drive change, we put
our customers first, and we exemplify the Best of the Filipinos spirit.”
Strategic Long-term Objectives
“To accommodate the needs of the people for better transportation, security and other related services. To offer high quality
service at a reasonable price. To offer careers for employee contentment. To boost the image of the Philippines and its citizens. To
contribute to the advancement and wellness of the society.”
Alternative Strategies
PAL includes the importance of putting effort on the customers over anything else, since that is an airline company, not only
they must ensure the safety of their customers, but also, they must serve their customers a stress- and hassle-free flight from point A to
point B. In every flight, there must be a crew assigned. The quality performance of the crew in serving their passengers, directly affects
the overall feedback of the passenger during the flight. This includes the smoothness/calmness of the whole crew when faced with
challenges, the amicable temperament of the flight attendants tending to the passengers during the flight. All of these factors directly
affect the satisfaction rating of the passengers which will affect the choice whether they wish to fly again with PAL or just fly with
another airline on their next flight.
Strategy Selection
They are operating a demand driven service. Their business model is often similar to the one of the LCCs. The renewal of
existing stores the model contains various strategies, activities in which the airline is engaged capture operations and value proposition
their target customer. This trend may see in the Philippines Airlines (PAL) and Cebu Pacific Air FSC or LCC.
Measures KPI(s), Timeline and Deliverables
Philippine Airlines (PAL) was ranked the top operator for on-time flights in Asia and the Pacific in March, with 8 out of 10 flights
arriving on schedule. In recent years, the Philippines has been going through a difficult time with the coronavirus pandemic. The airline
has assured the public that flights will not be interrupted and that all valid tickets, vouchers, awards and mileage awards will be honored.
PAL also pledged to expand air flights and continue to deliver much-needed vaccines and repatriation flights for Filipinos stranded
around the world.
After bankruptcy, Philippine Airlines begins to struggle with its success. China's widebody shortage and strict border controls all appear
to be hindering a full recovery to pre-coronavirus levels. Philippine Airlines (PAL) is determined to keep fighting to keep the island
nation connected.
Departure On-Time
PAL achieved an average OTP of 92%, well above the average OTP of 80%, 82% and 89% from July to September.
(A14%) Arrival within 15 Minutes
This month, PAL operated a total of 8,772 flights with an on-time rate of 79.48% and a completion rate of 96.15%. Overall, PAL
outperformed Seoul-based Asiana Airlines (79%) and Air New Zealand (78.11%) in on-time performance. Recognized as one of the
world's top airlines, Singapore Airlines ranked second only to PAL with an on-time performance rate of 77.62% in March.
Block-Time Performance
Philippine Airlines requires check-in at least 2 hours prior to scheduled departure for domestic flights and 3 hours prior to scheduled
departure for international flights. Check-in desks close 45 minutes prior to departure.
Completion Factor
PAL flights have achieved an average passenger load factor of 72% in 2022. This is nearly 30% higher than last year's load factor of
42.6%. The national airline will fly a total of 9.3 million passengers in 2022 and operate on both PAL's main network and PAL Express.
This is a 214% increase from the 2021 promotion level.
Organizational Structure

Resource
1. Personnel - Philippine airlines personnel are essential factors to the organization, and it has 4,138 employees to
maximize the operation.

2. Finance - Philippine Airlines budget to operate the corporation per year is estimated to be USD 2.2 Billion based on
the financial statement

3. Facilities
i. PAL Learning Center
It aims to deliver a top-notch training to all its employees. It also wants to strengthen the service culture and help every worker grow
into a fully-rounded PAL professional who upholds the corporate values of the airline.
ii. NAIA Centennial Terminal 2
It has a capacity of 2.5 million passengers annually in its international wing and 5 million in its domestic wing, which can eventually
grow to nine million passengers annually. Philippine Airlines resides in Terminal 2 and operates both domestic and international flights
from there.
iii. Data Center Building
There are two mainframe computers there, along with 120 Unix systems and PC servers. These devices power the complex reservation
and departure control systems that the airline uses on a regular basis. Nearly one hundred twenty analysts and programmers are housed
at the DCB, which also serves as the hub for application development and maintenance.
I. CONCLUSIONS AND RECOMMENDATIONS
It is clear that the aviation industry continues to grow, but Philippine airlines and the government should always think of ways
to improve and sustain the industry. As you know, the Philippines is an archipelago and the most efficient way to travel domestically
and especially internationally by air. This can be compared with other countries with the same archipelago environment. Improving the
aviation industry will bring growth to other sectors of the economy that are more important to tourism.
Competition between airlines is also a way to improve the industry where governments play a major role in promoting
competition. Of course, when there is competition, these companies will not be satisfied and will always think of ways to improve their
services to maintain their profits. Airlines can invest heavily in the quality of service they provide both on the ground and in the air.
They can improve ticketless travel, new interactive entertainment systems and more comfortable seats. If these airlines can offer good
service and product improvements, they can attract foreign investment, trade and tourism. Internationally, improvements in the aviation
industry could benefit tourism, as foreigners can only reach the Philippines efficiently by air. The government should promote the
country well to attract the attention of tourists.
Domestically, there are areas in the Philippines where air travel is not yet profitable but in need. Airlines do not set foot in these
locations for financial reasons. The government should act to allow growth in this location. To encourage these companies to fly to the
location, you can offer incentives such as: B. Tax relief. However, where governments provide incentives, policies must be designed so
as not to impede competition and efficiency. Again, guidelines should always be in the interests of travelers.