A case on Asia's first and Asia's best airline: Philippine Airlines

• Main Author: Salac, Ramon G.
• Format: text
• Language: English
• Published: Animo Repository 1997
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2259
• Institution: De La Salle University

When the present management (Lucio C. Tans Group) took over PAL two years ago (January 1995), it already knew the grave problems it was getting itself into. Already evident was the uncontrollable increase in expense rising at double the rate of increase in revenues. The uncanny increase in Maintenance and Engineering Departments expense in the aircraft and the huge cost of maintaining 12 variants of aircraft were a cause for nightmares. PALs support infrastructure was inadequate in meeting the employees and the customers basic needs. The employee did not even have decent facilities and proper office equipment. Catering facilities could not respond the demands of client airlines. PAL was sorely lacking in software system necessary for efficient operations. While the company was in the midst of all these internal problems, the Civil Aeronautics Board was exercising liberty in granting landing rights to competitor airlines. The long-drawn fare hike for F50 (domestic) sectors had likewise caused a serious dent in PALs revenues for years.