Philippine Airlines Introducing New Budget Fares, Reduces Baggage Fees

Darryl Wilson 251

In an effort to increase its competitiveness and to become the preferred airline in the Philippines, Philippine Airlines has announced that beginning on September 18, 2013, it will introduce simplified pricing on all of its domestic flights with the introduction of four new fare classes including a budget fare class to compete directly with low cost carriers.

The airline plans to roll out four new classes of fares to meet the needs of its diverse customer base. These new classes include: Budget Economy, Regular Economy, Premium Economy, and Business Class. Passengers will also be able to benefit from discounted baggage fees and new discounts for travel by students and senior citizens. In addition, Philippine Airlines announced that it will no longer be charging a fee to re-accommodate passengers on earlier flights on the same day of travel as long as the passenger travels on a standby basis pending availability of space.

Budget Economy Class
The airline's new Budget Economy Class is intended to provide price sensitive budget travellers with access to PAL's range of services and to compete directly with Cebu Pacific and other low cost carriers. It was previously believed that the airline would be introducing a new budget economy class seating product. But passengers that book Budget Economy Class will enjoy the same seating as Regular Economy passengers. However, they will be not be offered any complimentary baggage allowance or be able to earn Mabuhay Miles. Fares purchased in this class are non-refundable, non-transferable, and cannot be changed within 24 hours of departure. But unlike travelling on other budget carriers, complimentary snacks will continue to be provided on all flights with the exception of Q400 turbo-prop flights.

Regular Economy Class
Passengers that book in Regular Economy Class will not notice many changes from PAL's existing products and services. The free baggage allowance of 10 kilograms will continue to be offered and passengers may accumulate 100% of the Mabuhay Miles that they are entitled to for each flight sector. Unlike Budget Economy fares, Regular Economy fares can be cancelled and refunded for an applicable fee.

Premium Economy Class
Premium Economy Class is designed for passengers who seek the amenities of Business Class but cannot afford it. In addition to a free baggage allowance of 20 kilograms, Premium Economy passengers will also be offered an increased seat pitch of 34" to 35" on board the aircraft for added comfort. Cancellations, refunds, and changes are also permitted at no charge. Snacks and full Mabuhay Miles accumulation is also included. Unlike the other economy classes, if a passenger fails to show up for a flight, a refund is possible but a fee will be applied.

Business Class
Business Class is the highest level of service available on PAL domestic flights. Passengers are seated in a dedicated cabin with enhanced comfort and amenities. In addition to receiving a 30 kilogram baggage allowance, passengers will also enjoy a heavier snack and 125% accumulation of frequent flyer miles. Changes and cancellations are all permitted at no additional charge.

All passengers regardless of booking class will be entitled to re-accommodation on an earlier flight at no charge if they happen to find themselves at the airport earlier on the same day of departure as long as there is space available on the earlier flight.

As part of the new simplified fare structure, Philippines Airlines will also be applying its discount program for students, senior citizens, and persons with disabilities to both PAL and PAL Express flights. Seniors and Disabled Passengers are entitled to a 20% discount of all fares with the exception of promotional fares. Students can obtain a new discount of 20% on all flights and fares with the exception of the Budget Economy class.

Lower Baggage Fees
One of the most significant changes that will make a difference to the traveller's budget is the new prepaid baggage packages. Unlike previously where passengers were charged PHP200 for each kilogram of excess weight over and above the included complimentary baggage allowance, passengers will now be able to book and pre-pay for an increased luggage allowance.

For passengers travelling on Airbus operated flights, the new fees range from PHP200 for 15 kilograms up to PHP1,250 for 45 kilograms. On Q400 flights, passengers are only permitted to purchase up to a 10 kilogram allowance for PHP200. Excess baggage charges will apply to anything over the 10 kilograms. In addition, passengers will save significantly if they pre-purchase their baggage allowance rather than purchasing at the airport. As an example, if a passenger required an extra 15 kilograms for an Airbus flight, the cost would be PHP200 if purchased in advance but if you arrive at the airport without baggage allowance, the fee at the counter would be PHP560. Passengers will also have the opportunity to book and pre-pay for sports equipment carriage but this will be separate from the traditional baggage allowance.

The new domestic simplified pricing will take effect for both PAL and PAL Express flights on September 18.