Philippine Airlines (PAL) is the
flag carrier
A flag carrier is a transport company, such as an airline or shipping company, that, being locally registered in a given sovereign state, enjoys preferential rights or privileges accorded by the government for international operations.
Hist ...
of the
Philippines
The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no),
* bik, Republika kan Filipinas
* ceb, Republika sa Pilipinas
* cbk, República de Filipinas
* hil, Republ ...
, operating from its base at
Ninoy Aquino International Airport
Ninoy Aquino International Airport (NAIA , ; fil, Paliparang Pandaigdig ng Ninoy Aquino or ''Pandaigdigang Paliparan ng Ninoy Aquino''; ), originally known and still commonly referred to as Manila International Airport (MIA), is the main ...
. PAL is the oldest airline in Asia operating under its original name, having been founded in 1941.
Beginnings (1930–1959)
Philippine Aerial Taxi Company
On December 3, 1930, the Philippine Aerial Taxi Company (PATCO) was established by Emmanuel N. Bachrach. It commenced operations on March 18, 1931, with a round-trip flight from Manila to Iloilo. The company then had scheduled Manila-Baguio and Manila-Paracale flights. The company became dormant for six years on its scheduled passenger operation under its assigned routes.
Philippine Air Lines
On February 26, 1941, Philippine Air Lines, Inc., was formally incorporated by a group of businessmen headed by
Andrés Soriano Sr. At that time, he was hailed as one of the Philippines' leading industrialists
[''Milestones in the History of PAL''](_blank)
Philippine Airlines. Retrieved October 2011. and served as the airline's general manager. Soriano and former senator Ramón J. Fernández acquired the franchise of Philippine Aerial Taxi Company, Inc. and renamed Philippine Air Lines (PAL).
The airline's first flight took place on March 15, 1941, with a single
Beechcraft Model 18
The Beechcraft Model 18 (or "Twin Beech", as it is also known) is a 6- to 11-seat, twin-engined, low-wing, tailwheel light aircraft manufactured by the Beech Aircraft Corporation of Wichita, Kansas. Continuously produced from 1937 to November ...
NPC-54 on daily services between
Manila
Manila ( , ; fil, Maynila, ), officially the City of Manila ( fil, Lungsod ng Maynila, ), is the capital of the Philippines, and its second-most populous city. It is highly urbanized and, as of 2019, was the world's most densely populate ...
(from
Nielson Field
Nielson Field (Luzon, the Philippines) was the location of the Far East Air Force headquarters. Most of the aircraft of the FEAF were based at either Clark Field or Nichols Field. The cultural site was an ''Honourable Mention'' in the 2001 UNES ...
) and
Baguio
Baguio ( ,
), officially the City of Baguio ( ilo, Siudad ti Baguio; fil, Lungsod ng Baguio), is a 1st class highly urbanized city in the Cordillera Administrative Region, Philippines. It is known as the "Summer Capital of the Philippines", ...
.
It carried two pilots and five passengers on its maiden flight. The five passengers were the founders of the airline – Soriano, Fernández, Juan Miguel Elizalde, John R. Schultz and Ernesto Von Kaufmann. Government investment in September 1941 paved the way for its nationalization. On October 23, 1941, John R. Schultz was elected by the board of directors as treasurer of Philippine Air Lines.
PAL services were interrupted during
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, which lasted in the Philippines from late 1941 to 1945. Upon the outbreak of the Pacific War on December 8, 1941, the two Model 18s and its pilots were pressed into military service. They were used to evacuate American fighter pilots to Australia until one was shot down over Mindanao and the other was destroyed on the ground in an air raid in
Surabaya
Surabaya ( jv, ꦱꦸꦫꦧꦪ or jv, ꦯꦹꦫꦨꦪ; ; ) is the capital city of the Provinces of Indonesia, Indonesian province of East Java and the List of Indonesian cities by population, second-largest city in Indonesia, after Jakarta. L ...
, Indonesia.
On February 15, 1946, PAL resumed operations after a five-year hiatus with service to 15 domestic points with five
Douglas DC-3
The Douglas DC-3 is a propeller-driven airliner
manufactured by Douglas Aircraft Company, which had a lasting effect on the airline industry in the 1930s to 1940s and World War II.
It was developed as a larger, improved 14-bed sleeper version ...
s and a payroll of 108 names. Philippine Airlines returned to its original home,
Nielson Field
Nielson Field (Luzon, the Philippines) was the location of the Far East Air Force headquarters. Most of the aircraft of the FEAF were based at either Clark Field or Nichols Field. The cultural site was an ''Honourable Mention'' in the 2001 UNES ...
in Makati. The airport, heavily damaged during the war, was refurbished and modernized by PAL at a cost of over one million
pesos
The peso is the monetary unit of several countries in the Americas, and the Philippines. Originating in the Spanish Empire, the word translates to "weight". In most countries the peso uses the same sign, "$", as many currencies named "dollar" ...
, quickly becoming the official port of entry for air passengers into the Philippines. The airport was operated by Manila International Air Terminal, Inc., a wholly owned PAL subsidiary.
![Philippine_Air_Lines_Vickers_Viscount_Groves-1](https://upload.wikimedia.org/wikipedia/commons/6/69/Philippine_Air_Lines_Vickers_Viscount_Groves-1.jpg)
On July 31, 1946, PAL became the first Asian airline to cross the Pacific Ocean when a chartered
Douglas DC-4
The Douglas DC-4 is an American four-engined (piston), propeller-driven airliner developed by the Douglas Aircraft Company. Military versions of the plane, the C-54 and R5D, served during World War II, in the Berlin Airlift and into the 1960s ...
ferried 40 American servicemen to
Oakland
Oakland is the largest city and the county seat of Alameda County, California, United States. A major West Coast port, Oakland is the largest city in the East Bay region of the San Francisco Bay Area, the third largest city overall in the Bay A ...
, California, from Nielson Airport with stops in
Guam
Guam (; ch, Guåhan ) is an organized, unincorporated territory of the United States in the Micronesia subregion of the western Pacific Ocean. It is the westernmost point and territory of the United States (reckoned from the geographic cent ...
,
Wake Island
Wake Island ( mh, Ānen Kio, translation=island of the kio flower; also known as Wake Atoll) is a coral atoll in the western Pacific Ocean in the northeastern area of the Micronesia subregion, east of Guam, west of Honolulu, southeast of To ...
,
Johnston Atoll
Johnston Atoll is an Unincorporated territories of the United States, unincorporated territory of the United States, currently administered by the United States Fish and Wildlife Service (USFWS). Johnston Atoll is a National Wildlife Refuge and ...
and
Honolulu
Honolulu (; ) is the capital and largest city of the U.S. state of Hawaii, which is in the Pacific Ocean. It is an unincorporated county seat of the consolidated City and County of Honolulu, situated along the southeast coast of the island ...
.
A regular service between Manila and
San Francisco
San Francisco (; Spanish language, Spanish for "Francis of Assisi, Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the List of Ca ...
started in December 1946.
During this time, the airline was designated as the country's
flag carrier
A flag carrier is a transport company, such as an airline or shipping company, that, being locally registered in a given sovereign state, enjoys preferential rights or privileges accorded by the government for international operations.
Hist ...
.
[''Philippine Airlines Info Kit 1982'', Philippine Airlines. 1982.]
PAL commenced service to Europe in 1947 with the acquisition of more Douglas DC-4s.
By 1948, PAL had absorbed the only other scheduled airlines in the Philippines, Far Eastern Air Transport and Commercial Air Lines.
Flight International
''Flight International'' is a monthly magazine focused on aerospace. Published in the United Kingdom and founded in 1909 as "A Journal devoted to the Interests, Practice, and Progress of Aerial Locomotion and Transport", it is the world's oldes ...
April 12–18, 2005 Following the government's decision to convert
Nichols Field
Nichols Field was a U.S. military airfield located south of Manila in Pasay and Parañaque, Metro Manila, Luzon, the Philippines. The complex is located at Andrews Avenue by the north, Domestic Road by the west, NAIA Road and Ninoy Aquino Avenue ...
in
Pasay
Pasay, officially the City of Pasay ( fil, Lungsod ng Pasay; ), is a 1st class Cities of the Philippines#Legal classification, highly urbanized city in the Metro Manila, National Capital Region of the Philippines. According to the 2020 census, i ...
, the site of a former U.S. Air Force base, into the new international airport for Manila, PAL was required to move its base of operations and passenger terminal there from Nielson Airport. The transfer was accomplished over a five-month period from January 31 to June 28, 1948, with PAL investing an additional P600,000 in ground installations and improvements to Nichols Field.
In 1951, PAL leased a DC-3 named ''Kinsei'' to
Japan Airlines
, also known as JAL (''Jaru'') or , is an international airline and Japan's flag carrier and largest airline as of 2021 and 2022, headquartered in Shinagawa, Tokyo. Its main hubs are Tokyo's Narita International Airport and Haneda Airport, as w ...
, which led to the founding of the country's own national airline. In March 1954, the Philippine government suspended all flights to Europe, Japan and the United States, only to resume five years later. In three years PAL started services to Hong Kong, Bangkok, and Taipei using
Convair 340
The Convair CV-240 is an American airliner that Convair manufactured from 1947 to 1954, initially as a possible replacement for the ubiquitous Douglas DC-3. Featuring a more modern design with cabin pressurization, the 240 series made some inroa ...
s
that would later be replaced by the
Vickers Viscount 784, which brought the airline into the turboprop age.
First expansion and modernization (1960–1989)
![PAL_DC-10_Marmet-2](https://upload.wikimedia.org/wikipedia/commons/9/97/PAL_DC-10_Marmet-2.jpg)
In the 1960s, PAL entered the jet age, initially with a lone
Boeing 707
The Boeing 707 is an American, long-range, narrow-body airliner, the first jetliner developed and produced by Boeing Commercial Airplanes.
Developed from the Boeing 367-80 prototype first flown in 1954, the initial first flew on December 20, ...
, later replaced with
Douglas DC-8
The Douglas DC-8 (sometimes McDonnell Douglas DC-8) is a long-range narrow-body airliner built by the American Douglas Aircraft Company.
After losing the May 1954 US Air Force tanker competition to the Boeing KC-135, Douglas announced in Ju ...
aircraft leased from
KLM Royal Dutch Airlines
KLM Royal Dutch Airlines, legally ''Koninklijke Luchtvaart Maatschappij Naamloze vennootschap, N.V.'' (literal translation: Royal Aviation Company Plc.), is the flag carrier airline of the Netherlands. KLM is headquartered in Amstelveen, with i ...
,
used for long-haul international flights to Europe and the United States. The DC-3 remained the mainstay of domestic services as it expanded to a total of 72 points as airports were improved or opened, but most of the airline's rural air service was later stopped in May 1964. Two years later, PAL commenced its first jet services to
Cebu
Cebu (; ceb, Sugbo), officially the Province of Cebu ( ceb, Lalawigan sa Sugbo; tl, Lalawigan ng Cebu; hil, Kapuroan sang Sugbo), is a province of the Philippines located in the Central Visayas region, and consists of a main island and 167 ...
,
Bacolod
Bacolod, officially the City of Bacolod (; hil, Dakbanwa/Syudad sang Bacolod; fil, Lungsod ng Bacolod), is a 1st class highly urbanized city in the region of Western Visayas, Philippines. It is the capital of the province of Negros Occidenta ...
, and
Davao using the
BAC1-11.
In addition, PAL was privatized, as the Philippine government relinquished its share in PAL after Benigno Toda Jr., then-PAL chairman, acquired a majority stake in the airline.
A year after the declaration of
martial law
Martial law is the imposition of direct military control of normal civil functions or suspension of civil law by a government, especially in response to an emergency where civil forces are overwhelmed, or in an occupied territory.
Use
Marti ...
in 1972,
Ferdinand Marcos
Ferdinand Emmanuel Edralin Marcos Sr. ( , , ; September 11, 1917 – September 28, 1989) was a Filipino politician, lawyer, dictator, and kleptocrat who was the 10th president of the Philippines from 1965 to 1986. He ruled under martial ...
, during his second presidential term, issued monopolizing decrees in the form of Letters of Instruction (LOI) nos. 151 and 151-A, which were known as the "one-airline policy". PAL was the lone surviving airline, absorbing
Air Manila
Air Manila was a domestic airline in the Philippines. It was based out of Manila and operated propeller aircraft including the Handley Page Dart Herald, Fokker F27 Friendship and Lockheed L-188 Electra.
In the 1970s Air Manila obtained five secon ...
and
Filipinas Orient Airways
Filipinas Orient Airways, Inc. was an airline founded by the originally Lebanese refugee family Karam (later Caram) in the Philippines in 1964, under Republic Act No. 4147. FOA was granted the franchise to provide air transport service in the Phil ...
.
On March 10, 1973, PAL was re-designated as the national flag carrier.
PAL continued its expansion with the arrival of its first
Douglas DC-10
The McDonnell Douglas DC-10 is an American trijet wide-body aircraft manufactured by McDonnell Douglas.
The DC-10 was intended to succeed the DC-8 for long-range flights. It first flew on August 29, 1970; it was introduced on August 5, 1971, ...
in July 1974.
Three years later, the Philippine government re-nationalized PAL, with the
Government Service Insurance System
The Government Service Insurance System ( fil, Paseguruhan ng mga Naglilingkod sa Pamahalaan, abbreviated as GSIS) is a government-owned and controlled corporation (GOCC) of the Philippines. Created by Commonwealth Act No. 186 and Republic Act ...
holding a majority of PAL shares. In 1979, the
Boeing 727
The Boeing 727 is an American narrow-body airliner that was developed and produced by Boeing Commercial Airplanes.
After the heavy 707 quad-jet was introduced in 1958, Boeing addressed the demand for shorter flight lengths from smaller airpo ...
, the
Boeing 747-200B
The Boeing 747 is a large, long-range wide-body airliner designed and manufactured by Boeing Commercial Airplanes in the United States between 1968 and 2022.
After introducing the 707 in October 1958, Pan Am wanted a jet times its size, t ...
and the
Airbus A300
The Airbus A300 is a wide-body airliner developed and manufactured by Airbus.
In September 1967, aircraft manufacturers in the United Kingdom, France, and West Germany signed a memorandum of understanding to develop a large airliner.
West G ...
B4, dubbed the ''Love Bus'', joined the PAL fleet,
while the PAL DC-8 fleet was retired.
In 1975, Philippine Airlines was headquartered at the PAL Building in
Makati
Makati ( ), officially the City of Makati ( fil, Lungsod ng Makati), is a 1st class highly urbanized city in the National Capital Region of the Philippines.
Makati is the financial center of the Philippines; it has the highest concentration ...
. Between 1979 and 1981, as part of a comprehensive modernization program led by then-PAL President Roman A. Cruz, PAL built a series of mammoth aviation-related facilities around the periphery of the MIA. These included the PAL Technical Center, the PAL Inflight Center, the PAL Data Center and the PAL Aviation School. In the same time period, PAL also achieved service successes, after being the first airline to be honored by
Les Chaines de Rotisseurs, an ancient order of gourmets, with an award for its inflight cuisine.
On January 4, 1980, The Philippine Airlines' Boeing 747-200 dubbed the ''Jumbo Jet'' was the first of its kind to fly across the pacific. In addition to that, PAL was also the first airline in the world since the 1950s to introduce numerous fully flat bed seats in one aircraft. The 14 sleeping berths in the 747 known as "Skybeds" was certified for landing and take off. The "skybeds" were exclusive to first class in the upper deck.
![PAL_Boeing_747-200_Bidini-1](https://upload.wikimedia.org/wikipedia/commons/d/da/PAL_Boeing_747-200_Bidini-1.jpg)
On April 2, 1982, a PAL Boeing 747-200B arriving from San Francisco via Honolulu became the first aircraft to dock at the new 800-million peso Terminal 1 of
Manila International Airport
Ninoy Aquino International Airport (NAIA , ; fil, Paliparang Pandaigdig ng Ninoy Aquino or ''Pandaigdigang Paliparan ng Ninoy Aquino''; ), originally known and still commonly referred to as Manila International Airport (MIA), is the main ...
. PAL would later strengthen its cargo-handling capability by building a dedicated cargo terminal building adjacent to the MIA passenger terminal and installing cargo-refrigeration equipment in 1983. The new facilities, which catered mainly to international cargo services, enabled PAL to become a fully equipped cargo handler. Services to
Paris
Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...
and
Zürich
Zürich () is the list of cities in Switzerland, largest city in Switzerland and the capital of the canton of Zürich. It is located in north-central Switzerland, at the northwestern tip of Lake Zürich. As of January 2020, the municipality has 43 ...
began in November 1982.
After Cruz's resignation to President
Cory Aquino
Maria Corazon "Cory" Sumulong Cojuangco-Aquino (; ; January 25, 1933 – August 1, 2009) was a Filipina politician who served as the 11th president of the Philippines from 1986 to 1992. She was the most prominent figure of the 1986 People P ...
on the last day of the
1986 EDSA Revolution
The People Power Revolution, also known as the EDSA Revolution or the February Revolution, was a series of popular demonstrations in the Philippines, mostly in Metro Manila, from February 22 to 25, 1986. There was a sustained campaign of c ...
, Dante G. Santos became PAL president. He launched a massive modernization of the domestic fleet with the acquisition of the
Short 360
The Short 360 (also SD3-60; also Shorts 360)Mondey, David. ''Encyclopedia of the World's Commercial and Private Aircraft''. New York: Crescent Books, 1981. , p. 228. is a commuter aircraft that was built by UK manufacturer Short Brothers during ...
, nicknamed The Sunriser, in May 1987, the
Fokker 50
The Fokker 50 is a turboprop-powered airliner, designed as an improved version of the successful Fokker F27 Friendship. The Fokker 60 is a stretched freighter version of the Fokker 50. Both aircraft were manufactured and supported by Dutch airc ...
in August 1988 and the
Boeing 737-300
The Boeing 737 Classic is a series of narrow-body airliners produced by Boeing Commercial Airplanes, the second generation of the Boeing 737 series of aircraft.
Development began in 1979 and the first variant, the 737-300, first flew in Febru ...
jet in August 1989.
Corazon Aquino also abolished Marcos's one-airline policy in 1988.
As the Manila domestic passenger terminal outgrew its capacity and ramp aircraft parking space became more scarce, PAL leased the hangar of the Philippine Aerospace Development Corporation and converted it into the PAL Domestic Terminal 2. The terminal, which opened in October 1988, exclusively served passengers flying to destinations serviced by PAL's Airbus A300s: namely, Cebu and Davao, with
General Santos
General Santos, officially the City of General Santos,; hil, Dakbanwa sang Heneral Santos; Maguindanao language, Maguindanao: ''Ingud nu Heneral Santos''; Blaan language, Blaan: ''Banwe Dadiangas''; Tboli language, Tboli: ''Benwu Dadiangas'' ...
and
Puerto Princesa
Puerto Princesa, officially the City of Puerto Princesa (Cuyonon: ''Siyudad i'ang Puerto Princesa''; fil, Lungsod ng Puerto Princesa), is a 1st class highly urbanized city in the Mimaropa region of the Philippines. According to the 2020 census, ...
added later on. At the same time, PAL also expanded and improved the existing terminal. The opening of the new facility cleared out the old terminal and provided greater convenience to passengers.
Re-privatization and second expansion (1990–1997)
![Philippines_A320-200(RP-C8610)_(4351940604)](https://upload.wikimedia.org/wikipedia/commons/3/35/Philippines_A320-200%28RP-C8610%29_%284351940604%29.jpg)
PAL was privatized again in January 1992, when the government sold 67% share of PAL to a holding company called PR Holdings Inc. However, a conflict as to who would lead PAL led to a compromise in 1993, when former
Agriculture Secretary
The United States secretary of agriculture is the head of the United States Department of Agriculture. The position carries similar responsibilities to those of agriculture ministers in other governments.
The department includes several organi ...
Carlos G. Dominguez was elected as the PAL president by the airline's board of directors. The fleet of BAC1-11s were retired in May 1992, following the completion of the deliveries of Boeing 737s, and the Short 360s in September. In November 1993, PAL acquired its first
Boeing 747-400
The Boeing 747-400 is a large, long-range wide-body airliner produced by Boeing Commercial Airplanes, an advanced variant of the initial Boeing 747.
The "Advanced Series 300" was announced at the September 1984 Farnborough Airshow, targeting ...
. The new aircraft arrived at
Subic Bay International Airport
Subic Bay International Airport ( fil, Paliparang Pandaigdig ng Look ng Subic; ) serves as a secondary and diversion airport for Ninoy Aquino International Airport in Metro Manila and Clark International Airport in Pampanga. It also serves the i ...
and was carrying then-President
Fidel V. Ramos
Fidel Valdez Ramos (, ; March 18, 1928 – July 31, 2022), popularly known as FVR and Eddie Ramos, was a Filipino general and politician who served as the 12th president of the Philippines from 1992 to 1998. He was the only career military ...
, who was headed home from the United States after an official visit.
The 400-
ton
Ton is the name of any one of several units of measure. It has a long history and has acquired several meanings and uses.
Mainly it describes units of weight. Confusion can arise because ''ton'' can mean
* the long ton, which is 2,240 pounds
...
aircraft, one of the world's largest and most popular long-range aircraft was a mainstay of PAL's trans-Pacific services and its flagship aircraft until it was retired in 2014. A new service between Manila and
Osaka
is a designated city in the Kansai region of Honshu in Japan. It is the capital of and most populous city in Osaka Prefecture, and the third most populous city in Japan, following Special wards of Tokyo and Yokohama. With a population of 2. ...
, launched in 1994, brought to 34 the number of points in PAL's international route network.
The PAL Domestic Terminal 2 was refurbished in 1995, with a number of facilities being added or improved, including a renovated Mabuhay Lounge, an exclusive check-in counter for Mabuhay Class passengers, an express counter, refreshment bar, a medical clinic, an expansive waiting lounge and two baggage carousels in the arrival section. PAL facilities at NAIA were also renovated. The total cost for the renovation of the domestic terminal (1 and 2) reached P33.15 million.
In January 1995,
Lucio C. Tan
Lucio Chua Tan Sr. (; born July 17, 1934) is a Filipino business magnate, investor, and philanthropist. He presides over the Filipino conglomerate company LT Group, Inc., a company with extensive business interests in sports, banking, airline ...
, the majority shareholder of PR Holdings Inc., became the new chairman and CEO of the airline.
The delivery of the carrier's fourth Boeing 747-400 in April 1996 signalled the start of an ambitious
US$
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
4 billion modernization and re-fleeting program that aimed to make PAL one of Asia's best airlines within three years. The centerpiece of the program was the acquisition of 36 state-of-the-art aircraft from Airbus and Boeing between 1996 and 1999. The re-fleeting sought to give PAL the distinction of having the youngest fleet in Asia and allow the expansion of its domestic and international route network. The 36 orders of PAL during its re-fleeting program were for eight
Boeing 747-400
The Boeing 747-400 is a large, long-range wide-body airliner produced by Boeing Commercial Airplanes, an advanced variant of the initial Boeing 747.
The "Advanced Series 300" was announced at the September 1984 Farnborough Airshow, targeting ...
's, four
Airbus A340-300
The Airbus A340 is a long-haul, long-range, wide-body passenger airliner that was developed and produced by Airbus.
In the mid-1970s, Airbus conceived several derivatives of the Airbus A300, A300, its first airliner, and developed the A340 qu ...
's, two
Airbus A340-200s, eight
Airbus A330-300
The Airbus A330 is a wide-body aircraft developed and produced by Airbus.
Airbus conceived several derivatives of the A300, its first airliner in the mid-1970s. Then the company began development on the A330 twinjet in parallel with the A34 ...
's and twelve
Airbus A320-200
Airbus SE (; ; ; ) is a European multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace products worldwide and manufactures aircraft throughout the world. The company has three divisions: '' ...
's. The re-fleeting program enabled PAL to be dubbed the first airline in the world to operate the full range of new-generation Airbus aircraft.
[''PAL acquires 18 Airbus jets in major re-fleeting move''](_blank)
PhilippineAirlines.com. Retrieved January 2007.
Asian financial crisis (1997–1999)
![Airbus_A340-211,_Philippine_Airlines_AN1622032](https://upload.wikimedia.org/wikipedia/commons/0/07/Airbus_A340-211%2C_Philippine_Airlines_AN1622032.jpg)
In 1997, PAL rebranded itself as "Asia's Sunniest" to cap its new marketing and advertising thrust. PAL also commenced services to
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
, using the
Newark Liberty International Airport
Newark Liberty International Airport , originally Newark Metropolitan Airport and later Newark International Airport, is an international airport straddling the boundary between the cities of Newark in Essex County and Elizabeth in Union Count ...
via
Vancouver International Airport
Vancouver International Airport is an international airport located on Sea Island in Richmond, British Columbia, serving the city of Vancouver and the Lower Mainland region. It is located from Downtown Vancouver. It is the second busiest ...
. The acquisition of too many aircraft matched with unprofitable routes forced the airline to be financially unstable. The re-fleeting program was about halfway through when the full impact of the
1997 Asian financial crisis
The Asian financial crisis was a period of financial crisis that gripped much of East Asia and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion. However, the recovery in 1998–1 ...
struck the airline industry early in 1998. By March 31, 1999, PAL dismantled its
Mactan–Cebu International Airport
Mactan–Cebu International Airport ( ceb, Tugpahanang Pangkalibutan sa Mactan–Sugbo; fil, Paliparang Pandaigdig ng Mactan–Cebu; ) is an international airport serving Metro Cebu and serves as the main gateway to the Central Visayas region ...
hub. With massive lay-offs also taking place, disputes between the airline's owners and the employee's union led to a complete shutdown of PAL's operations on September 23, 1998.
[Business Travel; Philippine Airlines may shut down operations tonight, a victim of the Asian economic crisis](_blank)
''The New York Times'' (September 23, 1998). Retrieved on 2016-10-20. Cathay Pacific
Cathay Pacific Airways Limited (CPA), more widely known as Cathay Pacific (), is the flag carrier of Hong Kong, with its head office and main hub located at Hong Kong International Airport. The airline's operations and subsidiaries have sc ...
temporarily took over PAL's domestic and international operations during its fourteen-day shutdown, with Cathay Pacific also showing interest in acquiring a 40-percent stake in PAL during this period. However, no agreement was reached with the Hong Kong-based airline.
PAL resumed operations on October 7, 1998, after an agreement between PAL employees and top management, reported to be facilitated by
Philippine President
The president of the Philippines ( fil, Pangulo ng Pilipinas, sometimes referred to as ''Presidente ng Pilipinas'') is the head of state, head of government and chief executive of the Philippines. The president leads the executive branch of t ...
Joseph Estrada
Joseph Ejercito Estrada, (; born Jose Marcelo Ejercito; April 19, 1937), also known by the nickname Erap, is a Filipino politician and former actor. He served as the 13th president of the Philippines from 1998 to 2001, the 9th vice preside ...
, was reached, with services to 15 domestic points out of
Manila
Manila ( , ; fil, Maynila, ), officially the City of Manila ( fil, Lungsod ng Maynila, ), is the capital of the Philippines, and its second-most populous city. It is highly urbanized and, as of 2019, was the world's most densely populate ...
. On October 29, the flag carrier resumed international services with flights to Los Angeles and San Francisco, with other international services being restored three weeks later.
Asian services resumed on November 11 with flights to Tokyo and Hong Kong. PAL gradually expanded its network over the next two months, restoring services to Taipei, Osaka (via Cebu),
Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
,
Fukuoka
is the sixth-largest city in Japan, the second-largest port city after Yokohama, and the capital city of Fukuoka Prefecture, Japan. The city is built along the shores of Hakata Bay, and has been a center of international commerce since ancie ...
,
Dhahran
Dhahran ( ar, الظهران, ''Al-Dhahran'') is a city located in the Eastern Province, Saudi Arabia. With a total population of 240,742 as of 2021, it is a major administrative center for the Saudi oil industry. Together with the nearby cit ...
,
Riyadh
Riyadh (, ar, الرياض, 'ar-Riyāḍ, lit.: 'The Gardens' Najdi pronunciation: ), formerly known as Hajr al-Yamamah, is the capital and largest city of Saudi Arabia. It is also the capital of the Riyadh Province and the centre of the R ...
and
Seoul
Seoul (; ; ), officially known as the Seoul Special City, is the capital and largest metropolis of South Korea.Before 1972, Seoul was the ''de jure'' capital of the Democratic People's Republic of Korea (North Korea) as stated iArticle 103 ...
. With the aviation industry still in the doldrums, PAL continued to search for a strategic partner, but in the end, it submitted a "standalone" rehabilitation plan to the SEC on December 7, 1998. The plan provides a sound basis for the airline to undertake a recovery on its own while keeping the door open to the entry of a strategic partner in the future. PAL presented the new proposed rehabilitation plan to its major creditors during a two-week marathon meeting that started on February 14 in
Washington D.C.
)
, image_skyline =
, image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, Na ...
and ended on March 1 in Hong Kong.
In 1999, PAL submitted its amended rehabilitation plan to the
Securities and Exchange Commission
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
that comprised a revised business plan and a revised financial restructuring plan. The plan also required the infusion of US$200 million in new equity, with 40% to 60% coming from financial investors and translating to no less than 90% ownership of PAL. That same year, with the unprecedented boom in air travel, PAL operations were moved to the then-new Terminal 2 of Ninoy Aquino International Airport. The terminal, named as the Centennial Terminal in commemoration of 100 years of Philippine independence, is located at the site of the original MIA terminal building from 1961 to 1972. On August 9, 1999, PAL moved selected domestic flights to the P5.3 billion terminal. Full domestic operations operated from the new terminal on August 10, while international services followed soon after, thus consolidating PAL's flight operations in one terminal for the first time.
Receivership and rehabilitation (2000–2008)
In 2000, PAL finally returned to profitability, making some ₱44.2 million in its first year of rehabilitation, breaking some six years of heavy losses. On September 1, 2000, PAL formally handed over its ownership of its maintenance and engineering division to German-led joint venture Lufthansa Technik Philippines (LTP), the world's largest provider of aircraft maintenance services in accordance with the provisions of its rehabilitation plan, which mandates the disposal of the airline's non-core assets.
In August of the same year, PAL opened an e-mail booking facility. In 2001, PAL continued to gain a net profit of P419 million in its second year of rehabilitation. In that year alone, PAL restored services to
Bangkok
Bangkok, officially known in Thai language, Thai as Krung Thep Maha Nakhon and colloquially as Krung Thep, is the capital and most populous city of Thailand. The city occupies in the Chao Phraya River delta in central Thailand and has an estima ...
,
Taipei
Taipei (), officially Taipei City, is the capital and a special municipality of the Republic of China (Taiwan). Located in Northern Taiwan, Taipei City is an enclave of the municipality of New Taipei City that sits about southwest of the n ...
,
Sydney
Sydney ( ) is the capital city of the state of New South Wales, and the most populous city in both Australia and Oceania. Located on Australia's east coast, the metropolis surrounds Sydney Harbour and extends about towards the Blue Mountain ...
,
Busan
Busan (), officially known as is South Korea's most populous city after Seoul, with a population of over 3.4 million inhabitants. Formerly romanized as Pusan, it is the economic, cultural and educational center of southeastern South Korea, w ...
,
Jakarta
Jakarta (; , bew, Jakarte), officially the Special Capital Region of Jakarta ( id, Daerah Khusus Ibukota Jakarta) is the capital and largest city of Indonesia. Lying on the northwest coast of Java, the world's most populous island, Jakarta ...
,
Vancouver
Vancouver ( ) is a major city in western Canada, located in the Lower Mainland region of British Columbia. As the List of cities in British Columbia, most populous city in the province, the 2021 Canadian census recorded 662,248 people in the ...
and
Ho Chi Minh City
, population_density_km2 = 4,292
, population_density_metro_km2 = 697.2
, population_demonym = Saigonese
, blank_name = GRP (Nominal)
, blank_info = 2019
, blank1_name = – Total
, blank1_ ...
,
while launching new services to
Shanghai
Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flow ...
and
Melbourne
Melbourne ( ; Boonwurrung/Woiwurrung: ''Narrm'' or ''Naarm'') is the capital and most populous city of the Australian state of Victoria, and the second-most populous city in both Australia and Oceania. Its name generally refers to a met ...
. A year later, PAL restored services to
Guam
Guam (; ch, Guåhan ) is an organized, unincorporated territory of the United States in the Micronesia subregion of the western Pacific Ocean. It is the westernmost point and territory of the United States (reckoned from the geographic cent ...
and
Tagbilaran
Tagbilaran, officially the City of Tagbilaran ( ceb, Dakbayan sa Tagbilaran), is a 3rd class component city and capital of the province of Bohol, Philippines. According to the 2020 census, it has a population of 104,976 people.
Encompassing a la ...
.
Like other airlines, PAL was severely affected by the
September 11 attacks
The September 11 attacks, commonly known as 9/11, were four coordinated suicide terrorist attacks carried out by al-Qaeda against the United States on Tuesday, September 11, 2001. That morning, nineteen terrorists hijacked four commercia ...
in 2001. In 2003, PAL was restructured again.
![Philippine_Airlines_Airbus_A330-300_MRD-1](https://upload.wikimedia.org/wikipedia/commons/f/f6/Philippine_Airlines_Airbus_A330-300_MRD-1.jpg)
The Mabuhay Miles frequent flyer program was launched in 2002, combining PAL's former frequent flyer programs, PALSmiles, Mabuhay Club, and the Flying Sportsman (now SportsPlus) all into one.
The PAL RHUSH (Rapid Handling of Urgent Shipments) Cargo service was also re-launched during the same year.
An online arrival and departure facility and a new booking system was then launched in 2003. In December, PAL also acquired a fifth Boeing 747-400.
In 2004, PAL launched services to
Las Vegas
Las Vegas (; Spanish for "The Meadows"), often known simply as Vegas, is the 25th-most populous city in the United States, the most populous city in the state of Nevada, and the county seat of Clark County. The city anchors the Las Vegas ...
to mark its 63rd year of service. PAL also returned to
Laoag
Laoag, officially the City of Laoag ( ilo, Siudad ti Laoag; fil, Lungsod ng Laoag), is a 1st class Cities of the Philippines#Legal classification, component city and capital of the Provinces of the Philippines, province of Ilocos Norte, Philip ...
and started services to
Macau
Macau or Macao (; ; ; ), officially the Macao Special Administrative Region of the People's Republic of China (MSAR), is a city and special administrative region of China in the western Pearl River Delta by the South China Sea. With a pop ...
on codeshare with
Air Macau
Air Macau Company Limited (, Portuguese language, Portuguese: Companhia de Transportes Aéreos Air Macau, S.A.R.L.) is the flag carrier airline of Macau. It operates services to 24 destinations in Mainland China, Japan, South Korea, Thailand, Tai ...
. In that same year, the PAL entered into
code share
In communications and information processing, code is a system of rules to convert information—such as a letter, word, sound, image, or gesture—into another form, sometimes shortened or secret, for communication through a communication c ...
agreements with
Air France
Air France (; formally ''Société Air France, S.A.''), stylised as AIRFRANCE, is the flag carrier of France headquartered in Tremblay-en-France. It is a subsidiary of the Air France–KLM Group and a founding member of the SkyTeam global air ...
and
KLM Royal Dutch Airlines
KLM Royal Dutch Airlines, legally ''Koninklijke Luchtvaart Maatschappij Naamloze vennootschap, N.V.'' (literal translation: Royal Aviation Company Plc.), is the flag carrier airline of the Netherlands. KLM is headquartered in Amstelveen, with i ...
for services to
Paris
Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...
and
Amsterdam
Amsterdam ( , , , lit. ''The Dam on the River Amstel'') is the Capital of the Netherlands, capital and Municipalities of the Netherlands, most populous city of the Netherlands, with The Hague being the seat of government. It has a population ...
, respectively.
[''PAL gains Europe access with KLM code-share deal''](_blank)
Philippine Airlines Press Release, April 4, 2003 Code share service to Paris was cut due to the merging of the two European airlines and the formation of
Air France-KLM
The atmosphere of Earth is the layer of gases, known collectively as air, retained by Earth's gravity that surrounds the planet and forms its planetary atmosphere. The atmosphere of Earth protects life on Earth by creating pressure allowing for ...
. Service to Amsterdam remained, operated by KLM. PAL also continued an overhaul of its fleet with the arrival of two new
Airbus A320-214s and continued modernizing its ticketing systems with the launch of electronic ticketing. For the first time in Philippine history, the airline flew President-elect
Gloria Macapagal Arroyo
Maria Gloria Macaraeg Macapagal Arroyo (, born April 5, 1947), often referred to by her initials GMA, is a Filipino academic and politician serving as one of the Deputy Speaker of the House of Representatives of the Philippines, House Deputy Spe ...
and Vice-President-elect, now
ABS-CBN
ABS-CBN (an initialism of its two predecessors' names, Alto Broadcasting System and Chronicle Broadcasting Network) is a Television in the Philippines, Philippine Commercial broadcasting, commercial broadcast broadcast network, network tha ...
journalist
Noli de Castro
Manuel Leuterio de Castro Jr. (; born July 6, 1949), professionally known as Noli de Castro, is a Filipino journalist, news anchor and politician who served as the 12th vice president of the Philippines from 2004 until 2010, under President G ...
to their inauguration in Cebu City. Arroyo rode a chartered PAL
Airbus A330-300
The Airbus A330 is a wide-body aircraft developed and produced by Airbus.
Airbus conceived several derivatives of the A300, its first airliner in the mid-1970s. Then the company began development on the A330 twinjet in parallel with the A34 ...
, while de Castro was aboard a separate
Airbus A320-200
Airbus SE (; ; ; ) is a European multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace products worldwide and manufactures aircraft throughout the world. The company has three divisions: '' ...
.
In March 2005, PAL started services to
Nagoya
is the largest city in the Chūbu region, the fourth-most populous city and third most populous urban area in Japan, with a population of 2.3million in 2020. Located on the Pacific coast in central Honshu, it is the capital and the most pop ...
and restored scheduled flights to
Beijing
}
Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...
after a 15-year hiatus. In response to rival
Cebu Pacific's increasing domestic market share, mainly due to its massive re-fleeting program
[''Cebu turns up the heat''](_blank)
, OrientAviation.com. Retrieved March 2007. and its own aging Boeing 737 fleet, PAL signed an agreement for the purchase and lease of up to 18
Airbus A319-112s and
A320-214s from Airbus and
GE Capital Aviation Services
GECAS (GE Capital Aviation Services) was an Irish–American commercial aviation financing and leasing company. AerCap acquired the company from GE Capital on November 1, 2021.
GECAS was the largest commercial airline leasing/financing company in ...
(GECAS) on December 6, 2005.
The first brand-new, GECAS-leased
Airbus A319-112s were delivered to and inaugurated by PAL and President Arroyo on October 20, 2006. It was the first aircraft in the airline's history to offer AVOD-capable inflight entertainment on its Mabuhay Class cabin. In December, the airline initiated its wide-body re-fleeting program by signing a deal with Boeing for the purchase of two
Boeing 777-300ER
The Boeing 777, commonly referred to as the Triple Seven, is an American long-range wide-body airliner developed and manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet.
The 777 was designed to bridge the gap bet ...
aircraft to be delivered in 2009, with an option for two more planes in 2011. PAL also signed a separate agreement with GECAS to lease another two Boeing 777-300ER aircraft for delivery in 2010. The purchase of the new 777-300ERs effectively cancelled previous orders for new 747-400s, ending the production of said aircraft.
[PAL buys 2 planes from Air Philippines](_blank)
, Sun.Star Manila
''SunStar'' (also written as ''Sun Star''), stylized as SUNSTAR (formerly SUN•STAR), is an English-language newspaper in the Philippines. The newspaper is based in Cebu City.
Regional
* SunStar Cebu
* SunStar Davao
* SunStar Manila
''Sun ...
, July 2, 2007 PAL later signed a memorandum of understanding that opens the way for the introduction of flights to the southwestern Chinese city of
Chongqing
Chongqing ( or ; ; Sichuanese dialects, Sichuanese pronunciation: , Standard Mandarin pronunciation: ), Postal Romanization, alternately romanized as Chungking (), is a Direct-administered municipalities of China, municipality in Southwes ...
.
[''PAL-Chongqing air pact''](_blank)
PhilippineAirlines.com Accessed December 2007. Service to Chongqing began on March 14, 2008, while service to
Chengdu
Chengdu (, ; Simplified Chinese characters, simplified Chinese: 成都; pinyin: ''Chéngdū''; Sichuanese dialects, Sichuanese pronunciation: , Standard Chinese pronunciation: ), Chinese postal romanization, alternatively Romanization of Chi ...
commenced on March 18, though the routes have been terminated after the
2008 Sichuan earthquake.
Philippine Airlines was named "Airline Turnaround of the Year" for 2006 and 2007 by the Centre for Asia Pacific Aviation for its "strategic contribution to the aviation industry through a significant transformation by successfully restructuring its operations through innovative cost-cutting measures resulting in operating profits".
[''Best Turnaround Airline''](_blank)
PhilippineAirlines.com. Retrieved December 2006.
Post-receivership history (2008–2011)
![Philippines_A330-300(RP-C3340)_(4092086155)](https://upload.wikimedia.org/wikipedia/commons/8/8a/Philippines_A330-300%28RP-C3340%29_%284092086155%29.jpg)
On October 4, 2007, nine years after being financially crippled by the Asian financial crisis and subsequent downturns in the aviation industry, and after reporting a
net income
In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, a ...
of (US$140.3 million) which was the airline's largest profit at the time in its history, the Securities and Exchange Commission ordered the release of PAL from receivership. The airline immediately announced plans to attract foreign investments through an international road show to tour around Asia, Europe and North America.
[PAL eyes foreign investors, sets international road show](_blank)
Philippine Airlines Press Release. Retrieved October 2007. PAL continued its ambitious expansion plans, launching regional subsidiary
PAL Express
Air Philippines Corporation, operating as PAL Express and formerly branded as Air Philippines and Airphil Express, is a wholly owned subsidiary airline of Philippine Airlines which is under its ownership. It is PAL's regional brand, with servic ...
on April 10, 2008, to supersede the financially troubled Air Philippines, with a $150 million order for three 50-seat Bombardier Q300 and six 78-seat
Bombardier Q400
The De Havilland Canada DHC-8, commonly known as the Dash 8, is a series of turboprop-powered regional airliners, introduced by de Havilland Canada (DHC) in 1984. DHC was later bought by Boeing in 1988, then by Bombardier in 1992; then by ...
aircraft from
Bombardier Aerospace
Bombardier Aviation is a division of Bombardier Inc. It is headquartered in Dorval, Quebec, Canada. Its most popular aircraft included the Dash 8 Series 400, CRJ100/200/440, and CRJ700/900/1000 lines of regional airliners, and the newer CS ...
.
PAL Express operations began on May 5 with eight flights daily between Manila and Malay, while hub operations from Cebu City commenced on May 19 with flights between Cebu and five points in the Visayas and Mindanao.
[PAL Express unveiled](_blank)
Philippine Airlines Press Release, April 14, 2008 Services to other destinations, including many destinations formerly served by PAL prior to the Asian financial crisis, began in June and July 2008.
[PAL Express to fly 22 routes initially](_blank)
Philippine Airlines Press Release, May 5, 2008 PAL Express was originally to be primarily based in Cebu and fly intra-regional routes in the Visayas and Mindanao, as well as secondary routes to smaller airports in island provinces. In response to rising competition from
Cebu Pacific
Cebu Air, Inc., operating as Cebu Pacific (), is a low-cost airline of the Philippines. Founded in 1988, it is Asia's oldest low-cost airline. It offers scheduled flights to both domestic and international destinations. The airline operates fl ...
and
Zest Airways
Zest Airways, Inc., operated as AirAsia Zest (formerly Asian Spirit and Zest Air), was a low-cost airline based at the Ninoy Aquino International Airport in Pasay, Metro Manila in the Philippines. It operated scheduled domestic and international ...
, PAL Express rebranded itself as
Airphil Express
Air Philippines Corporation, operating as PAL Express and formerly branded as Air Philippines and Airphil Express, is a wholly owned subsidiary airline of Philippine Airlines which is under its ownership. It is PAL's regional brand, with servic ...
on March 28, 2010, under a
low-cost model. PAL decided to restore the PAL Express name as part of expansion strategy, effectively rendering the Airphil Express brand defunct on March 15, 2013.
Despite PAL's successful exit from receivership, international safety concerns regarding the Philippine aviation industry severely hindered its expansion plans. The United States
Federal Aviation Administration
The Federal Aviation Administration (FAA) is the largest transportation agency of the U.S. government and regulates all aspects of civil aviation in the country as well as over surrounding international waters. Its powers include air traffic m ...
downgraded the Philippines' aviation industry from Category 1 to Category 2 in January 2008, preventing PAL from increasing its flights to the United States from 33 per week or from switching the type of aircraft used unless the airline undertakes a wet-lease agreement with a different carrier.
The FAA decision effectively stalled PAL's previously announced intentions to expand its presence in the US market with routes to
San Diego
San Diego ( , ; ) is a city on the Pacific Ocean coast of Southern California located immediately adjacent to the Mexico–United States border. With a 2020 population of 1,386,932, it is the List of United States cities by population, eigh ...
,
Seattle
Seattle ( ) is a seaport city on the West Coast of the United States. It is the seat of King County, Washington. With a 2020 population of 737,015, it is the largest city in both the state of Washington and the Pacific Northwest regio ...
,
Chicago
(''City in a Garden''); I Will
, image_map =
, map_caption = Interactive Map of Chicago
, coordinates =
, coordinates_footnotes =
, subdivision_type = Country
, subdivision_name ...
,
Saipan
Saipan ( ch, Sa’ipan, cal, Seipél, formerly in es, Saipán, and in ja, 彩帆島, Saipan-tō) is the largest island of the Northern Mariana Islands, a Commonwealth (U.S. insular area), commonwealth of the United States in the western Pa ...
and
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
.
On March 30, 2010, Philippines-based carriers were placed in an
EU aviation blacklist (no longer true as of 2019),
banning PAL from flying to any European destinations. Since 2013, PAL is no longer in the blacklist. Nonetheless, PAL continued its route expansion plans in the Asia-Pacific region, resuming services to
Riyadh
Riyadh (, ar, الرياض, 'ar-Riyāḍ, lit.: 'The Gardens' Najdi pronunciation: ), formerly known as Hajr al-Yamamah, is the capital and largest city of Saudi Arabia. It is also the capital of the Riyadh Province and the centre of the R ...
with a four times weekly Boeing 747 service four years after it was suspended, as well as adding a twice weekly Airbus A330 service to
Brisbane
Brisbane ( ) is the capital and most populous city of the states and territories of Australia, Australian state of Queensland, and the list of cities in Australia by population, third-most populous city in Australia and Oceania, with a populati ...
and three-times-weekly service to
Delhi
Delhi, officially the National Capital Territory (NCT) of Delhi, is a city and a union territory of India containing New Delhi, the capital of India. Straddling the Yamuna river, primarily its western or right bank, Delhi shares borders w ...
via
Bangkok
Bangkok, officially known in Thai language, Thai as Krung Thep Maha Nakhon and colloquially as Krung Thep, is the capital and most populous city of Thailand. The city occupies in the Chao Phraya River delta in central Thailand and has an estima ...
. However, the expansion proved unprofitable and all three routes were cancelled. Flights to Brisbane and Riyadh were suspended in 2011, and the Manila-Bangkok-Delhi route ended in 2013; however service to Brisbane and Riyadh resumed in the same year.
Despite these hindrances on its expansion, PAL went ahead with its
widebody
A wide-body aircraft, also known as a twin-aisle aircraft, is an airliner with a fuselage wide enough to accommodate two passenger aisles with seven or more seats abreast. The typical fuselage diameter is . In the typical wide-body economy cabin ...
re-fleeting program, receiving its first two
Boeing 777-300ER
The Boeing 777, commonly referred to as the Triple Seven, is an American long-range wide-body airliner developed and manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet.
The 777 was designed to bridge the gap bet ...
aircraft on November 19, 2009, and January 2010 respectively, and another two leased from
GECAS
GECAS (GE Capital Aviation Services) was an Irish–American commercial aviation financing and leasing company. AerCap acquired the company from GE Capital on November 1, 2021.
GECAS was the largest commercial airline leasing/financing company in ...
in 2010. Due to the inability for PAL to further expand its long-haul network, the airline launched 777 service to its existing long-haul routes including Tokyo, Los Angeles and Vancouver. The 777-300ER jet features 370 seats in a two-class configuration (42 flat
business class
Business class is a travel class available on many commercial airlines and rail lines, known by brand names which vary, by airline or rail company. In the airline industry, it was originally intended as an intermediate level of service between ...
seats in a 2-3-2 layout and 328
economy class
Economy class, also called third class, coach class, steerage, or to distinguish it from the slightly more expensive premium economy class, standard economy class or budget economy class, is the lowest travel class of seating in air travel, rail ...
seats in a 3-4-3 layout), and is also PAL's first aircraft to feature AVOD in-flight entertainment in all classes (later retrofitted in its 747-400 fleet).
Labor disputes
In July 2010, 25 of Philippine Airlines' pilots resigned and left to seek employment abroad without informing the airline. After calls to return to work by both the airline and Philippine Government, PAL subsequently sought to file charges against the pilots involved for breach of contract. In the same month, PAL announced that it would be outsourcing jobs, with retrenchments resulting. Disputes with flight attendants, ground crew, airport staff as well as reservation agents escalated, with threats of potentially disruptive strike action, which took place in October. On Friday, November 12, 2010, the
Department of Labor and Employment
The Department of Labor and Employment ( fil, Kagawaran ng Paggawa at Empleyo}, commonly abbreviated as DOLE) is one of the executive departments of the Philippine government mandated to formulate policies, implement programs and services, an ...
approved the lay-off of 2600 employees of Philippine Airlines.
Entry of San Miguel Corporation (2012–2014)
On April 4, 2012,
San Miguel Corporation
San Miguel Corporation, abbreviated as SMC, is a Philippine Multinational corporation, multinational Conglomerate (company), conglomerate headquartered in Mandaluyong, Metro Manila. The company is one of the largest and most diversified congl ...
bought a 49-percent stake in Philippine Airlines for $500 million as part of a strategy to move away from its beer and food businesses. San Miguel, one of the Philippines'
biggest conglomerates, said it planned to help modernise and strengthen PAL, renew its aging fleet and restore its competitiveness in the Asian aviation industry. San Miguel president
Ramon Ang
Ramon See Ang (born January 14, 1954), also known by his initials RSA, is a Filipino businessman. He is the president and chief executive officer (CEO) of Top Frontier Investment Holdings, Inc., the largest shareholder of San Miguel Corporation. ...
also announced intentions to join a global airline alliance. PAL's first major initiative under San Miguel ownership was confirmed on August 28, 2012, with a $7 billion order for 54
Airbus
Airbus SE (; ; ; ) is a European Multinational corporation, multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace manufacturer, aerospace products worldwide and manufactures aircraft througho ...
aircraft, comprising 44
Airbus A321
The Airbus A321 is a member of the Airbus A320 family of short to medium range, narrow-body, commercial passenger twin engine jet airliners; it carries 185 to 236 passengers. It has a stretched fuselage which was the first derivative of the ba ...
(34 with sharklets and 10
A321neo
The Airbus A320neo family is a development of the A320 family of narrow-body airliners produced by Airbus.
The A320neo family (''neo'' for "new engine option") is based on the previous A319, A320 and A321 ( enhanced variant), which was then ren ...
) and 10
Airbus A330-300
The Airbus A330 is a wide-body aircraft developed and produced by Airbus.
Airbus conceived several derivatives of the A300, its first airliner in the mid-1970s. Then the company began development on the A330 twinjet in parallel with the A34 ...
, with options for 10 more. The A321 was ordered to enhance domestic and regional routes, while the A330-300s are to be flown on Australian, Middle Eastern and some European routes. PAL's original fleet of 8 A330s were transferred to
PAL Express
Air Philippines Corporation, operating as PAL Express and formerly branded as Air Philippines and Airphil Express, is a wholly owned subsidiary airline of Philippine Airlines which is under its ownership. It is PAL's regional brand, with servic ...
in response to Cebu Pacific announcing intentions to compete with PAL on mid-to-long-haul routes. PAL exercised its option to purchase a further 10 A330-300 for $2.5 billion on September 28. PAL took delivery of its first aircraft under this order in 2013.
![Boeing_777-36NER,_Philippine_Airlines_JP7516437](https://upload.wikimedia.org/wikipedia/commons/9/92/Boeing_777-36NER%2C_Philippine_Airlines_JP7516437.jpg)
Under San Miguel's management, PAL embarked on expanding its route network, involving both adding new and restoring previously terminated routes. In 2013, the airline announced its return to
Abu Dhabi
Abu Dhabi (, ; ar, أَبُو ظَبْيٍ ' ) is the capital and second-most populous city (after Dubai) of the United Arab Emirates. It is also the capital of the Emirate of Abu Dhabi and the centre of the Abu Dhabi Metropolitan Area.
...
,
Dammam
Dammam ( ar, الدمّام ') is the fifth-most populous city in Saudi Arabia after Riyadh, Jeddah, Mecca, and Medina. It is the capital of the Eastern Province. With a total population of 1,252,523 as of 2020. The judicial and administrative ...
and
Riyadh
Riyadh (, ar, الرياض, 'ar-Riyāḍ, lit.: 'The Gardens' Najdi pronunciation: ), formerly known as Hajr al-Yamamah, is the capital and largest city of Saudi Arabia. It is also the capital of the Riyadh Province and the centre of the R ...
, and launched new routes to
Brisbane
Brisbane ( ) is the capital and most populous city of the states and territories of Australia, Australian state of Queensland, and the list of cities in Australia by population, third-most populous city in Australia and Oceania, with a populati ...
and
Perth
Perth is the capital and largest city of the Australian state of Western Australia. It is the fourth most populous city in Australia and Oceania, with a population of 2.1 million (80% of the state) living in Greater Perth in 2020. Perth is ...
(via
Darwin), as well as
Doha
Doha ( ar, الدوحة, ad-Dawḥa or ''ad-Dōḥa'') is the capital city and main financial hub of Qatar. Located on the Persian Gulf coast in the east of the country, north of Al Wakrah and south of Al Khor, it is home to most of the coun ...
and
Jeddah
Jeddah ( ), also spelled Jedda, Jiddah or Jidda ( ; ar, , Jidda, ), is a city in the Hejaz region of the Kingdom of Saudi Arabia (KSA) and the country's commercial center. Established in the 6th century BC as a fishing village, Jeddah's pro ...
. In 2013, PAL was removed from the EU aviation blacklist after three years of negotiations, and the carrier immediately announced its European plans. PAL subsequently launched flights between Manila and
Heathrow
Heathrow Airport (), called ''London Airport'' until 1966 and now known as London Heathrow , is a major international airport in London, England. It is the largest of the six international airports in the London airport system (the others bei ...
to commence in November 2013, its first European destination in 15 years. The airline will expand its
US service as they will open flights from
Manila
Manila ( , ; fil, Maynila, ), officially the City of Manila ( fil, Lungsod ng Maynila, ), is the capital of the Philippines, and its second-most populous city. It is highly urbanized and, as of 2019, was the world's most densely populate ...
to
New York
New York most commonly refers to:
* New York City, the most populous city in the United States, located in the state of New York
* New York (state), a state in the northeastern United States
New York may also refer to:
Film and television
* '' ...
via Vancouver.
In addition to its fleet modernization and route expansion, PAL announced plans to become an investor within the aviation industry following the San Miguel partial acquisition. In 2012, the airline entered into negotiations with
Cayman Airways
Cayman Airways is the flag carrier airline of the British Overseas Territory of the Cayman Islands. With its head office in Grand Cayman, it operates mainly as an international and domestic scheduled passenger carrier, with cargo services avai ...
for a 50 percent equity share in the
Caribbean
The Caribbean (, ) ( es, El Caribe; french: la Caraïbe; ht, Karayib; nl, De Caraïben) is a region of the Americas that consists of the Caribbean Sea, its islands (some surrounded by the Caribbean Sea and some bordering both the Caribbean Se ...
-based airline. Under the deal, Cayman Airways will issue new preferred shares to PAL's majority shareholder, San Miguel Corporation. As part of the proposed scheme, Cayman Airways will use the fresh capital to acquire new aircraft which will then be leased out to Philippine Airlines under a
wet lease
Aircraft leases are leases used by airlines and other aircraft operators. Airlines lease aircraft from other airlines or leasing companies for two main reasons: to operate aircraft without the financial burden of buying them, and to provide tempora ...
agreement. The planes will be registered and domiciled in the
Cayman Islands
The Cayman Islands () is a self-governing British Overseas Territory—the largest by population in the western Caribbean Sea. The territory comprises the three islands of Grand Cayman, Cayman Brac and Little Cayman, which are located to the ...
, and to be flown, operated and maintained completely by Cayman Airways. In 2013, PAL entered a joint venture with the Cambodian conglomerate
Royal Group of Cambodia
The Royal Group, based in Phnom Penh, is Cambodia's largest diversified conglomerate and holding company with investments in various industries in the country including telecommunication, media, banking, insurance, resorts, education, property, t ...
, headed by
Kith Meng
Kith Meng ( km, គិត ម៉េង; ) is a Cambodian businessman sometimes dubbed as "Mr. Rough Stuff". He is the chairman and CEO of The Royal Group which counts among its holdings 45% of J Trust Royal Bank, the mobile phone operator Cellca ...
to launch a new incarnation
Cambodia Airlines
Cambodia Airlines was an airline in Cambodia owned by The Royal Group and PAL Holdings, Inc. of the Philippines. , the airline is no longer operating.
History
Cambodia Airlines was founded in 1997 but its operations ceased in 2005.
In 2013, Ph ...
with a 49% share. The new airline was originally expected to commence operations by June 2013, however no services have been launched as of September.
On August 30, 2012, PAL president Ramon Ang announced its intention to build a second international airport to service
Metro Manila
Metropolitan Manila (often shortened as Metro Manila; fil, Kalakhang Maynila), officially the National Capital Region (NCR; fil, link=no, Pambansang Punong Rehiyon), is the capital region, seat of government and one of three List of metrop ...
. Citing the need to relieve pressure on the congested and outdated
Ninoy Aquino International Airport
Ninoy Aquino International Airport (NAIA , ; fil, Paliparang Pandaigdig ng Ninoy Aquino or ''Pandaigdigang Paliparan ng Ninoy Aquino''; ), originally known and still commonly referred to as Manila International Airport (MIA), is the main ...
and the unreasonable 90 km distance from the Philippine government's favoured second airport option at
Clark
Clark is an English language surname, ultimately derived from the Latin with historical links to England, Scotland, and Ireland ''clericus'' meaning "scribe", "secretary" or a scholar within a religious order, referring to someone who was educate ...
, Ang announced that the airline was in negotiations with a Korean contractor to build the airport on a 2000-hectare site, initially with two runways, eventually expanding to four, in a yet-undisclosed location north of Metro Manila. In March 2013, PAL postponed the project indefinitely citing government restrictions on airline corporate ownership of Philippine airports. However, on July 12, 2013, Ang stated that PAL was 'still looking to build' a new airport and were '100% sure' that the project would eventuate, although plans had yet to be finalised.
In a disclosure to the Philippine Stock Exchange on September 8, 2014, San Miguel stated that it has signed an agreement "whereby
an Miguel
An, AN, aN, or an may refer to:
Businesses and organizations
* Airlinair (IATA airline code AN)
* Alleanza Nazionale, a former political party in Italy
* AnimeNEXT, an annual anime convention located in New Jersey
* Anime North, a Canadian a ...
expressed willingness to sell its 49% stake to the group of Dr. Lucio Tan, and the latter has expressed willingness to buy the said 49% stake." It added the deal is "subject to the fulfillment of certain conditions." Informed sources said San Miguel gave Tan a week to raise $1 billion to acquire the stake. The final transaction amounted to $1.3 billion and was completed a week later on September 15, 2014. In a disclosure to the Philippine Stock Exchange on September 16, 2014,
San Miguel said Tan assumed day-to-day management of PAL through the appointment of its former president, Jaime Bautista, as general manager. However, it maintained that Ang, as president of PAL, remains, along with the rest of his team, "until the relevant closing date of the agreement" between the parties. On October 15, 2014, Ang officially stepped down as president and COO.
Return of Lucio Tan and continued expansion (2014–2020)
![Philippine_Airlines_2016_stamp_of_the_Philippines](https://upload.wikimedia.org/wikipedia/commons/4/4c/Philippine_Airlines_2016_stamp_of_the_Philippines.jpg)
On October 23, 2014, Philippine Airlines announced the appointment of Bautista as the new president and COO of Philippine Airlines. Under Bautista's rule, Philippine Airlines deferred the deliveries of the
Airbus A321neo
The Airbus A320neo family is a development of the A320 family of narrow-body airliners produced by Airbus.
The A320neo family (''neo'' for "new engine option") is based on the previous A319, A320 and A321 ( enhanced variant), which was then ren ...
that was supposed to be delivered from November 2017, under the San Miguel management. The strategic move minimised the risk of an overcapacity with single aisle aircraft in the PAL fleet. Jaime Bautista also announced plans to replace its A340 fleet, with the choice of a new and modern
Airbus A350 XWB
The Airbus A350 is a flight length, long-range, wide-body aircraft, wide-body twinjet, twin-engine jet airliner developed and produced by Airbus Commercial Aircraft, Airbus.
The first A350 design proposed by Airbus in 2004, in response to ...
or
Boeing 787 Dreamliner
The Boeing 787 Dreamliner is an American wide-body jet airliner developed and manufactured by Boeing Commercial Airplanes.
After dropping its unconventional Sonic Cruiser project, Boeing announced the conventional 7E7 on January 29, 2003, ...
. In addition to new aircraft, PAL has chosen to lease more 777s for its growing long haul flights.
In January 2015, Philippine Airlines became the official carrier of
Pope Francis
Pope Francis ( la, Franciscus; it, Francesco; es, link=, Francisco; born Jorge Mario Bergoglio, 17 December 1936) is the head of the Catholic Church. He has been the bishop of Rome and sovereign of the Vatican City State since 13 March 2013. ...
throughout
his apostolic trip in the Philippines. The aircraft boarded by the pontiff was named "
Shepherd One
Air transports for heads of state and government are, in many countries, provided by the air force in specially equipped airliners or business jets. One such aircraft in particular has become part of popular culture: Air Force One, used by the P ...
".
The airline flew the pope to the city of
Tacloban
Tacloban ( ; ), officially the City of Tacloban ( war, Syudad han Tacloban; fil, Lungsod ng Tacloban), is a first class highly urbanized city in the Eastern Visayas region of the Philippines. The city is autonomous from the province of Leyte, a ...
and, as per traditional protocol, flew him back to
Ciampino Airport
Ciampino () is a city and ''comune'' in the Metropolitan City of Rome, Lazio, Italy. It was a ''frazione'' of Marino until 1974, when it became a ''comune''; it obtained the city ( it, città) status (being therefore officially known as Città ...
in
Rome
, established_title = Founded
, established_date = 753 BC
, founder = King Romulus (legendary)
, image_map = Map of comune of Rome (metropolitan city of Capital Rome, region Lazio, Italy).svg
, map_caption ...
, Italy from Manila.
![RP-C8614_(26105255794)](https://upload.wikimedia.org/wikipedia/commons/1/1a/RP-C8614_%2826105255794%29.jpg)
In March 2015, coinciding with the 74th anniversary of the carrier, Philippine Airlines resumed flights to
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
via the
John F. Kennedy International Airport
John F. Kennedy International Airport (colloquially referred to as JFK Airport, Kennedy Airport, New York-JFK, or simply JFK) is the main international airport serving New York City. The airport is the busiest of the seven airports in the Ne ...
with a stopover in Vancouver from Manila. The airline previously flew to New York via
Newark Liberty International Airport
Newark Liberty International Airport , originally Newark Metropolitan Airport and later Newark International Airport, is an international airport straddling the boundary between the cities of Newark in Essex County and Elizabeth in Union Count ...
, but cancelled the route in 1997 following the
Asian financial crisis
The Asian financial crisis was a period of financial crisis that gripped much of East Asia and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion. However, the recovery in 1998–1 ...
. Philippine Airlines originally utilized the Airbus A340 for its flights, but in October 2015, PAL upgraded its Boeing 747-400 order to the larger Boeing 777-300ER to increase seat capacity for flights to New York. In addition, Philippine Airlines expanded to the Oceania region by introducing flights to
Auckland
Auckland (pronounced ) ( mi, Tāmaki Makaurau) is a large metropolitan city in the North Island of New Zealand. The List of New Zealand urban areas by population, most populous urban area in the country and the List of cities in Oceania by po ...
,
New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
(via
Cairns
Cairns (, ) is a city in Queensland, Australia, on the tropical north east coast of Far North Queensland. The population in June 2019 was 153,952, having grown on average 1.02% annually over the preceding five years. The city is the 5th-most-p ...
, Australia) and
Port Moresby
(; Tok Pisin: ''Pot Mosbi''), also referred to as Pom City or simply Moresby, is the capital and largest city of Papua New Guinea. It is one of the largest cities in the southwestern Pacific (along with Jayapura) outside of Australia and New Z ...
in
Papua New Guinea
Papua New Guinea (abbreviated PNG; , ; tpi, Papua Niugini; ho, Papua Niu Gini), officially the Independent State of Papua New Guinea ( tpi, Independen Stet bilong Papua Niugini; ho, Independen Stet bilong Papua Niu Gini), is a country i ...
. Philippine Airlines' global expansion and new routes also made the airline among nine out of the sixteen publicly traded Southeast Asian carriers to be profitable, having kept a $120 million profit. It was ranked the fourth profitable overall and second profitable full-service carrier in Southeast Asia, according to the Centre for Asia Pacific Aviation.
In June 2015, Philippine Airlines renewed its partnership with
Lufthansa Technik
Lufthansa Technik AG ('Lufthansa Engineering', often referred to simply as “LHT”) provides worldwide maintenance, repair, and overhaul (MRO) services for aircraft, engines, and components. It is a subsidiary of the Lufthansa Group.
Headquarte ...
Philippines for a two-year base and heavy maintenance checks for its Airbus fleet.
In 2016, Philippine Airlines announced the launching of flights between Manila and
Doha
Doha ( ar, الدوحة, ad-Dawḥa or ''ad-Dōḥa'') is the capital city and main financial hub of Qatar. Located on the Persian Gulf coast in the east of the country, north of Al Wakrah and south of Al Khor, it is home to most of the coun ...
, Manila and
Kuwait City
Kuwait City ( ar, مدينة الكويت) is the capital and largest city of Kuwait. Located at the heart of the country on the south shore of Kuwait Bay on the Persian Gulf, it is the political, cultural and economical centre of the emirate, ...
(via
Dubai
Dubai (, ; ar, دبي, translit=Dubayy, , ) is the most populous city in the United Arab Emirates (UAE) and the capital of the Emirate of Dubai, the most populated of the 7 emirates of the United Arab Emirates.The Government and Politics of ...
), and
Cebu City
Cebu City, officially the City of Cebu ( ceb, Dakbayan sa Sugbo; fil, Lungsod ng Cebu; hil, Dakbanwa sang Sugbo), is a 1st class Cities of the Philippines#Legal classification, highly urbanized city in the Central Visayas Regions of the P ...
to
Los Angeles
Los Angeles ( ; es, Los Ángeles, link=no , ), often referred to by its initials L.A., is the largest city in the state of California and the second most populous city in the United States after New York City, as well as one of the world' ...
.
In April 2016, on Philippine Airlines' 75th anniversary, the airline introduced a new campaign called ''The Heart of the Filipino''. The campaign was aggressively undertaken, with the launch of new advertisements which are endorsed by ''
The Voice of the Philippines
''The Voice of the Philippines'' is a Philippine reality television singing competition on ABS-CBN. It is based on the reality singing competition ''The Voice of Holland'', which was originally created by Dutch television producer John de Mol ...
'' judges: singers
Bamboo Mañalac
Francisco Gaudencio Lope Belardo MañalacVIDEO: "It's Francisco, that's my great-grandfather, then Gaudencio, that's my lolo, then it's Lope, then it's Belardo Mañalac." / (born March 21, 1976), popularly known as Bamboo Mañalac or simply by ...
,
Lea Salonga
Maria Lea Carmen Imutan Salonga (; born February 22, 1971), known professionally as Lea Salonga, is a Filipino singer, actress, and columnist. Nicknamed "Pride of the Philippines," she is best known for her roles in musical theatre, for supplyin ...
, and
Sarah Geronimo
Sarah Asher Tua Geronimo-Guidicelli (, , born July 25, 1988) is a Filipino singer, performer and actress. Geronimo rose to prominence after winning the television singing contest '' Star for a Night'' earning her a recording contract with Vi ...
, as well as the
Miss Universe 2015
Miss Universe 2015 was the 64th Miss Universe pageant, held at The AXIS at Planet Hollywood in Las Vegas, Nevada, United States on December 20, 2015. This was the first edition of the pageant to be held under the ownership of WME/IMG, which ...
winner,
Pia Wurtzbach
Pia Alonzo Wurtzbach ( ; ; born September 24, 1989), formerly known professionally as Pia Romero, is a Filipino model, actress and beauty queen who is known for being crowned Miss Universe 2015.
She joined Binibining Pilipinas pageant three ...
. The airline adopted a new theme song, which incorporates the vocals of Mañalac, Salonga, and Geronimo. The lyrics famously includes the old PAL slogan "Shining Through," reminiscing on PAL's successful campaign in the 1980s. The airline also released a new
pre-flight safety demonstration
A pre-flight safety briefing (also known as a pre-flight demonstration, in-flight safety briefing, in-flight safety demonstration, safety instructions, or simply the safety video) is a detailed explanation given before take-off to airline passeng ...
video in conjunction with ''The Heart of the Filipino'' campaign, called ''Heart of The Nation'', in February 2017. The video featured various tourist destinations in the Philippines with locals from those destinations demonstrating the safety guidelines.
Philippine Airlines continued its expansion by augmenting its international and domestic flights.
The airline started flying to
Nanning
Nanning (; ; za, Namzningz) is the capital and largest city by population of the Guangxi Zhuang Autonomous Region in Southern China. It is known as the "Green City" because of its abundance of lush subtropical foliage. Located in the South of ...
and
Sapporo
( ain, サッ・ポロ・ペッ, Satporopet, lit=Dry, Great River) is a city in Japan. It is the largest city north of Tokyo and the largest city on Hokkaido, the northernmost main island of the country. It ranks as the fifth most populous city ...
, and non-stop flights to
Brisbane
Brisbane ( ) is the capital and most populous city of the states and territories of Australia, Australian state of Queensland, and the list of cities in Australia by population, third-most populous city in Australia and Oceania, with a populati ...
,
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
,
Perth
Perth is the capital and largest city of the Australian state of Western Australia. It is the fourth most populous city in Australia and Oceania, with a population of 2.1 million (80% of the state) living in Greater Perth in 2020. Perth is ...
,
Toronto
Toronto ( ; or ) is the capital city of the Canadian province of Ontario. With a recorded population of 2,794,356 in 2021, it is the most populous city in Canada and the fourth most populous city in North America. The city is the ancho ...
. There are also plans to introduce new flights to
New Delhi
New Delhi (, , ''Naī Dillī'') is the capital of India and a part of the National Capital Territory of Delhi (NCT). New Delhi is the seat of all three branches of the government of India, hosting the Rashtrapati Bhavan, Parliament House ...
and
Mumbai
Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...
. The airline also launched new flights to
Clark
Clark is an English language surname, ultimately derived from the Latin with historical links to England, Scotland, and Ireland ''clericus'' meaning "scribe", "secretary" or a scholar within a religious order, referring to someone who was educate ...
, making
Clark International Airport
Clark International Airport ( pam, Pangyatung Sulapawan ning Clark; fil, Paliparang Pandaigdig ng Clark; ), known as Diosdado Macapagal International Airport from 2003 to 2012, is an international airport covering portions of the cities of ...
its second hub after
Mactan–Cebu International Airport
Mactan–Cebu International Airport ( ceb, Tugpahanang Pangkalibutan sa Mactan–Sugbo; fil, Paliparang Pandaigdig ng Mactan–Cebu; ) is an international airport serving Metro Cebu and serves as the main gateway to the Central Visayas region ...
. However, the airline indefinitely suspended flights to
Kuwait
Kuwait (; ar, الكويت ', or ), officially the State of Kuwait ( ar, دولة الكويت '), is a country in Western Asia. It is situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, bordering Iraq to the nort ...
,
Jeddah
Jeddah ( ), also spelled Jedda, Jiddah or Jidda ( ; ar, , Jidda, ), is a city in the Hejaz region of the Kingdom of Saudi Arabia (KSA) and the country's commercial center. Established in the 6th century BC as a fishing village, Jeddah's pro ...
, and
Darwin,
as well as the route from
Cebu City
Cebu City, officially the City of Cebu ( ceb, Dakbayan sa Sugbo; fil, Lungsod ng Cebu; hil, Dakbanwa sang Sugbo), is a 1st class Cities of the Philippines#Legal classification, highly urbanized city in the Central Visayas Regions of the P ...
to
Los Angeles
Los Angeles ( ; es, Los Ángeles, link=no , ), often referred to by its initials L.A., is the largest city in the state of California and the second most populous city in the United States after New York City, as well as one of the world' ...
, citing low demand.
Continuing with its fleet expansion, Philippine Airlines acquired new aircraft to serve its new routes. The airline received its 9th and 10th
Boeing 777-300ER
The Boeing 777, commonly referred to as the Triple Seven, is an American long-range wide-body airliner developed and manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet.
The 777 was designed to bridge the gap bet ...
in 2017. The airline also acquired six new
Airbus A350-900
The Airbus A350 is a long-range, wide-body twin-engine jet airliner developed and produced by Airbus.
The first A350 design proposed by Airbus in 2004, in response to the Boeing 787 Dreamliner, would have been a development of the A330 wi ...
with options for six more. The first A350 was delivered on July 14, 2018, with the other A350s being delivered subsequently. Both aircraft were used for international, long-haul flights. The airline also acquired the
Airbus A321neo
The Airbus A320neo family is a development of the A320 family of narrow-body airliners produced by Airbus.
The A320neo family (''neo'' for "new engine option") is based on the previous A319, A320 and A321 ( enhanced variant), which was then ren ...
(with a standard and long-range variant) and Bombardier Q400, the former used for regional flights and the latter used for domestic flights. The airline also announced its intention to acquire the
Airbus A350-1000
The Airbus A350 is a long-range, wide-body twin-engine jet airliner developed and produced by Airbus.
The first A350 design proposed by Airbus in 2004, in response to the Boeing 787 Dreamliner, would have been a development of the A330 wi ...
, the largest variant of Airbus A350. The airline retired its
Airbus A340
The Airbus A340 is a long-range, wide-body passenger airliner that was developed and produced by Airbus.
In the mid-1970s, Airbus conceived several derivatives of the A300, its first airliner, and developed the A340 quadjet in parallel with ...
aircraft, the airline being the last to use the aircraft in Asia, and some of its Airbus A320ceo, with some transferred to its subsidiary, PAL express.
With improvements to its existing fleet, facilities, and services, along with its continued fleet modernization and expansion, the airline was certified with a four-star rating from
Skytrax
Skytrax (originally known as Inflight Research Services) is a United Kingdom–based consultancy which runs an airline and airport review and ranking site.
Services
Skytrax conducts research for commercial airlines, as well as taking surveys ...
, joining 40 other airlines, after an audit made in December 2017. PAL was also awarded a 4-star certification by APEX on September 26, 2018, and was considered the Most Improved Airline of 2019 by AirlineRatings.com.
The airline signed agreements with companies such as
Amadeus
Amadeus may refer to:
*Wolfgang Amadeus Mozart (1756–1791), prolific and influential composer of classical music
*Amadeus (name), a given name and people with the name
* ''Amadeus'' (play), 1979 stage play by Peter Shaffer
* ''Amadeus'' (film), ...
to upgrade its core technology system, and Lufthansa Technik Philippines to maintain its aircraft for 12 years. PAL also signed an agreement with the
Armed Forces of the Philippines
The Armed Forces of the Philippines (AFP) ( fil, Sandatahang Lakas ng Pilipinas) are the military forces of the Philippines. It consists of three main service branches; the Army, the Air Force, and the Navy (including the Marine Corps). The P ...
(AFP) on September 28, 2018, to give travel privileges to all AFP military personnel in the form of discounted domestic economy or business class tickets.
On January 29, 2019,
All Nippon Airways
, also known as ANA (''Ē-enu-ē'') or is an airline in Japan. Its headquarters are located in Shiodome City Center in the Shiodome area of Minato ward of Tokyo. It operates services to both domestic and international destinations and had mo ...
purchased a 9.5% stake on the airline's holding company, PAL Holdings, for US$95 million.
On February 20, 2019, Philippine Airlines took delivery of its fifth Airbus A350, with the iconic "Love Bus" symbol, commemorating its forty years of partnership with aircraft manufacturer,
Airbus
Airbus SE (; ; ; ) is a European Multinational corporation, multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace manufacturer, aerospace products worldwide and manufactures aircraft througho ...
.
On June 18, 2019, Philippine Airlines announced the appointment of Lucio Tan's daughter, Vivienne as the new executive vice president and OIC following the retirement of president and COO Jaime Bautista.
On July 29, 2019, Philippine Airlines appointed Gilbert Santa Maria as the new president and COO, replacing Jaime Bautista. Viviene Tan was reassigned as the head of audit.
COVID-19 pandemic (2020–2022)
In February 2020, Philippine Airlines decided to lay off 300 of its workers due to financial losses caused by the
COVID-19 pandemic
The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identif ...
. On March 17, 2020, it suspended its domestic flights, followed by its international flights on March 26 due to
a lockdown that was imposed in the island of Luzon in response to the increasing cases of
COVID-19
Coronavirus disease 2019 (COVID-19) is a contagious disease caused by a virus, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The first known case was COVID-19 pandemic in Hubei, identified in Wuhan, China, in December ...
in the Philippines. Limited operations resumed in June 2020 after the lockdown was eased, but were again suspended in August due to the same lockdown that was re-implemented in the same month. By the end of the year, it reported a net loss of .
On March 15, 2021, Philippine Airlines celebrated its eightieth anniversary.
Amid mounting debts, the airline filed for
Chapter 11 bankruptcy protection
Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, wheth ...
at a New York court on September 4, 2021. It cancelled more than 80,000 flights, wiping out US$2 billion in revenue, and let go of 2,300 employees.
Two days later, the airline announced that it would return 22 aircraft to its lessors, reducing its fleet size from 92 to 70, and postpone the delivery of 13 aircraft on order. The airline managed to complete its financial restructuring in three months, which was a much faster period than any other global airlines that underwent the same bankruptcy process. By the end of 2021, it returned to profitability, reporting a profit by the end of the fiscal year, its first profit since 2016.
Post-pandemic history (2022–present)
On January 31, 2022, Philippine Airlines appointed Captain Stanley K. Ng as the new president and COO, replacing Gilbert Santa Maria. Ng is the first
pilot
An aircraft pilot or aviator is a person who controls the flight of an aircraft by operating its directional flight controls. Some other aircrew members, such as navigators or flight engineers, are also considered aviators, because they a ...
to assume the presidency of the airline since the 1960s. That same year, the airline reported a (US$2.57 billion) profit for 2022 as travel restrictions ease.
New destinations and flight resumptions were also announced. On December 16, 2022, PAL returned to
Baguio
Baguio ( ,
), officially the City of Baguio ( ilo, Siudad ti Baguio; fil, Lungsod ng Baguio), is a 1st class highly urbanized city in the Cordillera Administrative Region, Philippines. It is known as the "Summer Capital of the Philippines", ...
, the airline's very first destination, by launching flights to the airport from
Cebu
Cebu (; ceb, Sugbo), officially the Province of Cebu ( ceb, Lalawigan sa Sugbo; tl, Lalawigan ng Cebu; hil, Kapuroan sang Sugbo), is a province of the Philippines located in the Central Visayas region, and consists of a main island and 167 ...
. In January 2023, as
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
, being an important market for
tourism in the Philippines
Tourism is an important sector for Philippine economy. The travel and tourism industry contributed 5.2%% to the country's GDP in 2021; this was lower than the 12.7% recorded in 2019 prior to the COVID-19 lockdowns. The country is known for havi ...
, lifted travel restrictions, PAL resumed flights to
Xiamen
Xiamen ( , ; ), also known as Amoy (, from Hokkien pronunciation ), is a sub-provincial city in southeastern Fujian, People's Republic of China, beside the Taiwan Strait. It is divided into six districts: Huli, Siming, Jimei, Tong'an, ...
and
Guangzhou
Guangzhou (, ; ; or ; ), also known as Canton () and alternatively romanized as Kwongchow or Kwangchow, is the capital and largest city of Guangdong province in southern China. Located on the Pearl River about north-northwest of Hong Kon ...
, followed by
Shanghai
Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flow ...
and
Beijing
}
Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...
a month later.
On February 15, 2023, PAL signed an agreement with aviation software provider
Ramco Systems
Ramco Systems Limited (, , MSE–RSST) is an Indian multinational enterprise software company that offers Aviation, ERP, HRP and
Logistics software. Founded in 1997, it is a part of the Ramco Group and operates in 28 locations across 35 count ...
to automate and
digitize
DigitizationTech Target. (2011, April). Definition: digitization. ''WhatIs.com''. Retrieved December 15, 2021, from https://whatis.techtarget.com/definition/digitization is the process of converting information into a digital (i.e. computer- ...
the airline's business operations.
References
{{Philippine Airlines
Philippine Airlines