Identity Crisis Part 3: What Does Philippine Airlines Stand For?
In previous articles, we have established that the country's flag carrier, Philippine Airlines (PAL) is facing an identity crisis. Since Ramon Ang assumed leadership at PAL, his team has gone to great lengths to merge Philippine Airlines and PAL Express into one common brand identity. However, this has not been without consequence.
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| Copyright Photo: Angelo Agcamaran/PPSG |
As many may recall, PAL Express was previously doing business as a low-cost carrier under the name, airphil express. When Ramon Ang decided to re-brand airphil express as PAL Express, he was attempting to raise the profile of the national flag carrier by creating a common identity with a uniform set of standards system-wide that would distinguish Philippine Airlines from its competitors.
It was at this stage when PAL Express transitioned from a LCC model to a hybrid carrier. Ultimately, this helped to raise the reputation of PAL Express, giving it a slight edge over Cebu Pacific by providing all-in fares that included complimentary snacks. However, this common brand identity strategy has not had the same effect in raising the standards and reputation of the national flag carrier, Philippine Airlines.
It was at this stage when PAL Express transitioned from a LCC model to a hybrid carrier. Ultimately, this helped to raise the reputation of PAL Express, giving it a slight edge over Cebu Pacific by providing all-in fares that included complimentary snacks. However, this common brand identity strategy has not had the same effect in raising the standards and reputation of the national flag carrier, Philippine Airlines.
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| Copyright Photo: Angelo Agcamaran/PPSG |
As service standards no longer seem to be distinguishable on domestic, regional, and especially routes to the Middle East, one must wonder why Philippine Airlines continues to claim two distinct identities when in reality, it's very challenging to spot any difference from a customer point of view between Philippine Airlines and PAL Express. Even the aircraft liveries are identical making it nearly impossible for the average passenger to distinguish the brands. That is precisely what Ramon Ang was trying to accomplish: a seamless, integrated experience across both carriers. Unfortunately, PAL Express is still supposed to be the discount version of Philippine Airlines, hence the distinction.
Either Ramon Ang is discreetly transitioning Philippine Airlines into a low-cost carrier, or could this be a branding strategy that has gone terribly wrong?
SHOULD NATIONAL FLAG CARRIERS HAVE LOW-COST ALTER EGOS?
In short, yes they should. The low-cost carrier market around the world has been eating into the market share of national flag carriers. The only way to retain that market share is for the legacy carrier to launch their own low-cost subsidiary. However, the key is to maintain brand integrity and ensure that both brands remain clear and distinct of each other.
In Singapore, Singapore Airlines' latest financial results are less than impressive. However, the airline remains unapologetic about its steeper airfares as it knows that its brand revolves around the high quality travel experience that it has designed for business and leisure travellers alike. In order to address the growing trend of low-cost air travel and to ensure it receives its own fair share of the market, Singapore Airlines created Tigerair and Scoot to cater to the budget market. It also operates SilkAir, which caters to leisure travellers on regional flights. By clearly segmenting its markets and distinguishing its unique brands, the primary flagship, Singapore Airlines, is left to concentrate on its primary target market, while maintaining its high level of service. In short, Singapore Airlines does not pretend to be something it's not or compromise its existing market base and brand in order to capture a new market. Instead, it has distinct brands for that.
In the land down under, Australian carrier Qantas has followed a similar path, creating low-cost subsidiary, Jetstar. The service aboard Jetstar is highly stripped down, compared to its full-service counterpart, but the benefit for travellers is that it is clear what to expect when you fly with either one. However, is it important to note that Jetstar has not stripped completely as their new 787 fleet does feature a Business Class and traditional (yes, traditional) in-flight entertainment. Rumours have been surfacing that Qantas may eventually cancel its service to Manila and deploy Jetstar to more effectively compete with aggressive pricing from Philippine Airlines and the entry of Cebu Pacific.
Overall, it's clear to see that maintaining a full-service legacy carrier and a low-cost subsidiary is common practice in the airline industry. However, in order to be effective, the brand identities must be clear and consistent so that the travelling public knows exactly what to expect. In the United States, this model sometimes takes on a different shape where a regional brand is present or there is a clear distinction between service standards on board domestic flights versus international long-haul flights.
PAL EXPRESS: BRAND IDENTITY OR BRAND CRISIS?
However, when it comes to Philippine Airlines, there is little to distinguish the flagship product from its low-cost subsidiary. Since Ang took over, PAL Express gradually take over the entire domestic network of Philippine Airlines, although PAL initially retained certain domestic routes that had a higher level of premium traffic such as Cebu, Davao, Iloilo, and General Santos.
As PAL Express has a lower cost base than it's full service counterpart, it is able to operate at a lower cost on price sensitive routes. That has often made it a suitable candidate on international routes. Last year, PAL Express operated flights to both Kuala Lumpur and Singapore. However, the Kuala Lumpur service has since been terminated, while Philippine Airlines continues to serve Singapore.
Prior to San Miguel assuming management of Philippine Airlines, it was clear what Philippine Airlines stood for and what airphil express represented. The low-cost carrier was distinct with its no-frills policy and barebones amenities on board each aircraft, whereas Philippine Airlines offered a full-service product including a Business Class cabin, hot meals, complimentary checked luggage, and some form of in-flight entertainment.
Although Ramon Ang was aiming for a clearly defined set of standards across both carriers, there seems to be more overlap and more confusion than ever before to the disappointment of passengers. Since passengers cannot tell whether their aircraft belongs to Philippine Airlines or PAL Express, it is nearly impossible to distinguish the brands. On some older PAL A320 and A330 aircraft, what used to be defined as Business Class, is now being sold as Premium Economy. As many of these aircraft are flown by PAL Express, many passengers are surprised to discover the on-board "mainscreen" in-flight entertainment.
However, the rude shock arrives when one connects from a domestic PAL Express flight with "mainscreen" in-flight entertainment, on to a regional flight operated by Philippine Airlines using one of their new A321 aircraft, which doesn't have a single seat back television in Business or Economy Class, and not even any overhead screens. In this case, the discount brand offers more than its full-service counterpart.
When airphil express was operating independently of Philippine Airlines, it was very clear to passengers that all flights departed from Terminal 3. However, when the carrier was re-branded to PAL Express, its domestic operations were spread between Terminals 2 and 3 to the great inconvenience of passengers. It's unlikely anyone needs an explanation as to why connecting between terminals at NAIA is a horrendous experience.
The Middle East is where things begin to really get tricky. Although PAL Express is supposed to be the low-cost arm of Philippine Airlines domestically, it may come as a surprise to many to learn that it operates a flight to Dubai. The challenge for most passengers is that when they book this flight, it is less than clear that they will be travelling on PAL Express as opposed to Philippine Airlines. The route is operated by an Airbus A330-300. If one looks at it from the outside, it looks just like any other Philippine Airlines aircraft. However, the inside of the cabin is when passengers get the rude shock.
This particular Airbus A330 is configured in an all-economy layout with 414 seats that are configured nine seats abreast. For the eight hour flight to Manila, there is no in-flight entertainment in the form of individual screens or overhead monitors. A British passenger that took the flight recently reported to Philippine Flight Network that there were not even any newspapers or in-flight magazines available. In addition, it was not even possible to purchase a beer on-board. Sadly, this was the first impression the passenger had of Philippine Airlines and they did not even know that they were actually travelling on-board PAL Express.
The experience may sound all too familiar -- perhaps like a flight with Cebu Pacific. That is likely the only reason that PAL Express serves Dubai: to compete with Cebu Pacific. It seems odd given that just a few hundred miles away, Philippine Airlines operates the route to Abu Dhabi also using that very same 414-seat all-economy A330. So, what exactly is the difference between the two brands? If the Philippine Airlines brand is intended for more affluent markets, why deploy PAL Express to Dubai and PAL to Abu Dhabi - two cities located within the same country?
By now, it should be relatively clear why passengers are just so confused. It's as if Philippine Airlines boasts its own internal class system with two-tiers of service. If you're one of the lucky passengers travelling to North America, you get to fly on-board PAL's flagship Boeing 777 aircraft complete with Business Class and audio-video on-demand. But those bound for the Middle East are treated to an experience that isn't far off a Cebu Pacific flight - yet the aircraft carry the exact same brand name and livery.
While it may be a prudent business decision to operate a specially configured aircraft with limited on-board amenities that better serves the needs of the price sensitive Middle Eastern market, while also helping Philippine Airlines to effectively compete with Cebu Pacific, one must recognize the damage that is being done to the primary brand name by operating two-tiers of service in different regions of the world. Although the majority of passengers may indeed be overseas Filipino workers, what happens to the unsuspecting affluent tourist from Europe or even from Dubai that is expecting to fly on a full-service carrier? The less than satisfying experience aboard PAL Express might just be enough to make it their last experience forever with Philippine Airlines, although little do they know that a higher quality product awaits on North America bound flights.
If we take the price-sensitive situation in the Filipino Middle East market and apply it to another carrier such as Singapore Airlines, it's relatively easy to deduce what may have unfolded. Rather than compromise the integrity of its full-service brand standards and reconfigure one of its aircraft into a tight amenity-less all-economy configuration, Singapore Airlines would have likely deployed its long-haul low cost brand, Scoot, to service the price-sensitive overseas Filipino worker market in the Middle East. Although PAL seems to have attempted to do that with PAL Express, there still is not enough to distinguish one brand from the other.
PHILIPPINE AIRLINES NEEDS TO CLEARLY DEFINE ITS BRAND
At this point, nobody can truly answer what Philippine Airlines represents as a brand as it takes on so many different shapes and forms depending on what aircraft you are flying aboard and where you are flying to. Overall, the airline and the brand lacks any real consistency in what it stands for. Some may be led to believe that PAL is slowly morphing into a low-cost carrier. That may indeed be true. But if PAL intends to continue offering two distinct tiers of service, then they must find a better way to distinguish their service levels through the use of multiple brands. The carrier has already been accused of treating Australian passengers as third-class citizens for re-deploying its modern flagship Boeing 777 to the United States and replacing it on Australian routes with dated A340 aircraft that lack in-flight entertainment.
If Philippine Airlines is trying to define itself as a low-cost carrier, then it's not even doing a very good job of that either. It seems more likely that PAL is migrating towards a hybrid model but has unfortunately, failed to develop their brands, what they stand for, and specifically, how they should be defined on a global basis. All one has to do is to log onto the PAL Express website, only to discover that it is now dead and re-directs to the Philippine Airlines website. It raises the question yet again, from a branding stand-point, why does PAL Express even exist if PAL does not wish to distinguish it for consumers?
WILL THE REAL PHILIPPINE AIRLINES PLEASE STAND UP?
PAL Group currently does business under two brands: Philippine Airlines and PAL Express. Domestic flights are operated by PAL Express, while the majority of international flights are served by Philippine Airlines. In that aspect, there is little confusion though the discrepancies in aircraft configurations and amenities may frustrate some. However, PAL Express operating flights to the Middle East using an aircraft that looks a lot like Philippine Airlines is a confusing proposition, especially when the real Philippine Airlines operates an identical aircraft and product to an airport that is just a few hundred miles away in the same country. Indeed, there may be a need here for a no-frills service but this is best carried out under a distinct brand. That means either Philippine Airlines should create its own long-haul discount brand, or it needs to do a better job distinguishing PAL Express. Overall, Philippine Airlines is not using the PAL Express brand in the way it was originally intended -- as a no frills service, and because of that the lower standards are dragging down the Philippine Airlines brand as well with highly confusing discrepancies in its product lines. Perhaps airphil express shouldn't have disappeared after all.
-HybridAce101
SHOULD NATIONAL FLAG CARRIERS HAVE LOW-COST ALTER EGOS?
In short, yes they should. The low-cost carrier market around the world has been eating into the market share of national flag carriers. The only way to retain that market share is for the legacy carrier to launch their own low-cost subsidiary. However, the key is to maintain brand integrity and ensure that both brands remain clear and distinct of each other.
In Singapore, Singapore Airlines' latest financial results are less than impressive. However, the airline remains unapologetic about its steeper airfares as it knows that its brand revolves around the high quality travel experience that it has designed for business and leisure travellers alike. In order to address the growing trend of low-cost air travel and to ensure it receives its own fair share of the market, Singapore Airlines created Tigerair and Scoot to cater to the budget market. It also operates SilkAir, which caters to leisure travellers on regional flights. By clearly segmenting its markets and distinguishing its unique brands, the primary flagship, Singapore Airlines, is left to concentrate on its primary target market, while maintaining its high level of service. In short, Singapore Airlines does not pretend to be something it's not or compromise its existing market base and brand in order to capture a new market. Instead, it has distinct brands for that.
In the land down under, Australian carrier Qantas has followed a similar path, creating low-cost subsidiary, Jetstar. The service aboard Jetstar is highly stripped down, compared to its full-service counterpart, but the benefit for travellers is that it is clear what to expect when you fly with either one. However, is it important to note that Jetstar has not stripped completely as their new 787 fleet does feature a Business Class and traditional (yes, traditional) in-flight entertainment. Rumours have been surfacing that Qantas may eventually cancel its service to Manila and deploy Jetstar to more effectively compete with aggressive pricing from Philippine Airlines and the entry of Cebu Pacific.
Overall, it's clear to see that maintaining a full-service legacy carrier and a low-cost subsidiary is common practice in the airline industry. However, in order to be effective, the brand identities must be clear and consistent so that the travelling public knows exactly what to expect. In the United States, this model sometimes takes on a different shape where a regional brand is present or there is a clear distinction between service standards on board domestic flights versus international long-haul flights.
PAL EXPRESS: BRAND IDENTITY OR BRAND CRISIS?
However, when it comes to Philippine Airlines, there is little to distinguish the flagship product from its low-cost subsidiary. Since Ang took over, PAL Express gradually take over the entire domestic network of Philippine Airlines, although PAL initially retained certain domestic routes that had a higher level of premium traffic such as Cebu, Davao, Iloilo, and General Santos.
As PAL Express has a lower cost base than it's full service counterpart, it is able to operate at a lower cost on price sensitive routes. That has often made it a suitable candidate on international routes. Last year, PAL Express operated flights to both Kuala Lumpur and Singapore. However, the Kuala Lumpur service has since been terminated, while Philippine Airlines continues to serve Singapore.
Prior to San Miguel assuming management of Philippine Airlines, it was clear what Philippine Airlines stood for and what airphil express represented. The low-cost carrier was distinct with its no-frills policy and barebones amenities on board each aircraft, whereas Philippine Airlines offered a full-service product including a Business Class cabin, hot meals, complimentary checked luggage, and some form of in-flight entertainment.
Although Ramon Ang was aiming for a clearly defined set of standards across both carriers, there seems to be more overlap and more confusion than ever before to the disappointment of passengers. Since passengers cannot tell whether their aircraft belongs to Philippine Airlines or PAL Express, it is nearly impossible to distinguish the brands. On some older PAL A320 and A330 aircraft, what used to be defined as Business Class, is now being sold as Premium Economy. As many of these aircraft are flown by PAL Express, many passengers are surprised to discover the on-board "mainscreen" in-flight entertainment.
However, the rude shock arrives when one connects from a domestic PAL Express flight with "mainscreen" in-flight entertainment, on to a regional flight operated by Philippine Airlines using one of their new A321 aircraft, which doesn't have a single seat back television in Business or Economy Class, and not even any overhead screens. In this case, the discount brand offers more than its full-service counterpart.
When airphil express was operating independently of Philippine Airlines, it was very clear to passengers that all flights departed from Terminal 3. However, when the carrier was re-branded to PAL Express, its domestic operations were spread between Terminals 2 and 3 to the great inconvenience of passengers. It's unlikely anyone needs an explanation as to why connecting between terminals at NAIA is a horrendous experience.
The Middle East is where things begin to really get tricky. Although PAL Express is supposed to be the low-cost arm of Philippine Airlines domestically, it may come as a surprise to many to learn that it operates a flight to Dubai. The challenge for most passengers is that when they book this flight, it is less than clear that they will be travelling on PAL Express as opposed to Philippine Airlines. The route is operated by an Airbus A330-300. If one looks at it from the outside, it looks just like any other Philippine Airlines aircraft. However, the inside of the cabin is when passengers get the rude shock.
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| Copyright Photo: Angelo Agcamaran/PPSG |
The experience may sound all too familiar -- perhaps like a flight with Cebu Pacific. That is likely the only reason that PAL Express serves Dubai: to compete with Cebu Pacific. It seems odd given that just a few hundred miles away, Philippine Airlines operates the route to Abu Dhabi also using that very same 414-seat all-economy A330. So, what exactly is the difference between the two brands? If the Philippine Airlines brand is intended for more affluent markets, why deploy PAL Express to Dubai and PAL to Abu Dhabi - two cities located within the same country?
By now, it should be relatively clear why passengers are just so confused. It's as if Philippine Airlines boasts its own internal class system with two-tiers of service. If you're one of the lucky passengers travelling to North America, you get to fly on-board PAL's flagship Boeing 777 aircraft complete with Business Class and audio-video on-demand. But those bound for the Middle East are treated to an experience that isn't far off a Cebu Pacific flight - yet the aircraft carry the exact same brand name and livery.
While it may be a prudent business decision to operate a specially configured aircraft with limited on-board amenities that better serves the needs of the price sensitive Middle Eastern market, while also helping Philippine Airlines to effectively compete with Cebu Pacific, one must recognize the damage that is being done to the primary brand name by operating two-tiers of service in different regions of the world. Although the majority of passengers may indeed be overseas Filipino workers, what happens to the unsuspecting affluent tourist from Europe or even from Dubai that is expecting to fly on a full-service carrier? The less than satisfying experience aboard PAL Express might just be enough to make it their last experience forever with Philippine Airlines, although little do they know that a higher quality product awaits on North America bound flights.
If we take the price-sensitive situation in the Filipino Middle East market and apply it to another carrier such as Singapore Airlines, it's relatively easy to deduce what may have unfolded. Rather than compromise the integrity of its full-service brand standards and reconfigure one of its aircraft into a tight amenity-less all-economy configuration, Singapore Airlines would have likely deployed its long-haul low cost brand, Scoot, to service the price-sensitive overseas Filipino worker market in the Middle East. Although PAL seems to have attempted to do that with PAL Express, there still is not enough to distinguish one brand from the other.
PHILIPPINE AIRLINES NEEDS TO CLEARLY DEFINE ITS BRAND
At this point, nobody can truly answer what Philippine Airlines represents as a brand as it takes on so many different shapes and forms depending on what aircraft you are flying aboard and where you are flying to. Overall, the airline and the brand lacks any real consistency in what it stands for. Some may be led to believe that PAL is slowly morphing into a low-cost carrier. That may indeed be true. But if PAL intends to continue offering two distinct tiers of service, then they must find a better way to distinguish their service levels through the use of multiple brands. The carrier has already been accused of treating Australian passengers as third-class citizens for re-deploying its modern flagship Boeing 777 to the United States and replacing it on Australian routes with dated A340 aircraft that lack in-flight entertainment.
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| Copyright Photo: Angelo Agcamaran/PPSG |
WILL THE REAL PHILIPPINE AIRLINES PLEASE STAND UP?
PAL Group currently does business under two brands: Philippine Airlines and PAL Express. Domestic flights are operated by PAL Express, while the majority of international flights are served by Philippine Airlines. In that aspect, there is little confusion though the discrepancies in aircraft configurations and amenities may frustrate some. However, PAL Express operating flights to the Middle East using an aircraft that looks a lot like Philippine Airlines is a confusing proposition, especially when the real Philippine Airlines operates an identical aircraft and product to an airport that is just a few hundred miles away in the same country. Indeed, there may be a need here for a no-frills service but this is best carried out under a distinct brand. That means either Philippine Airlines should create its own long-haul discount brand, or it needs to do a better job distinguishing PAL Express. Overall, Philippine Airlines is not using the PAL Express brand in the way it was originally intended -- as a no frills service, and because of that the lower standards are dragging down the Philippine Airlines brand as well with highly confusing discrepancies in its product lines. Perhaps airphil express shouldn't have disappeared after all.
-HybridAce101
PAL is definitely "lost in translation"
ReplyDeletePal express must use different livery or rename back to airphil express.many peoples though that pal express is a full service airline,because of the word"pal"
ReplyDeleteAlso, it has "Philippines" on its aircraft just like in Philippine Airlines.
DeletePlease the discussion about the leased A340 is becoming too stale. Ad Nauseam.
ReplyDeleteIf PAL had any other quick option to replace those ex-IB A340's, they would have already done so. The B777's are already serving the "more viable" North American routes now and PAL certainly has no other long haul aircraft to serve other routes, until after the 242T A330's arrive.
These discussions are nothing but armchair CEO's yapping.
Do majority of passengers care? They only want a cheap fares and to arrive safely. Besides this strategy gives PAL profit$
ReplyDeleteOfcourse!!!! What a stupid question indeed!
Deleteworthless article...product of bogys reasoning. PAL expected this to happen as seen in RSA's prediction on profitability. They carefully thought about the hybrid strategy and it is working. They know their market hence the changes. Maglalagay ka nga ng napakagandang AVOD pero wala ka rin namang customer.
ReplyDeleteIt's just choosing between 2 options: profitability or losses. Pal chose the former, obviously. PAL knows that their business class customers want better service so they improved on it while the economy passengers wanted a cheaper ticket so they compromised on the IFE. The premium economy answered to the requests of those who wanted more legroom. What is the purpose of a business if you don't make calculated risks?
ReplyDeleteTheir "identity crisis" if that's how you want to call it is actually benefiting them.
Business class on the PAL 77W can compete with SQ and CX any day. What I cannot understand is why they introduce a stripped-down business class on the latest A330's which goes against the norm; IFE's are essential for long haul.
ReplyDeleteBusiness class on PAL 77W CANNOT compete with SQ and CX any day. Period.
DeleteIf you have a delusional concept of business class product then PAL can compete with SQ and CX. I think you must have sniffed something prior to boarding business class on PAL.
DeleteHahahaaaaaa!
DeletePAL's 77W business class can't compare to CX and SQ. In-seat comfort of CX and SQ (amenities and storage space) is way much better than PAL's (just seat pockets). Even the lie-flat seats of CX and SQ is much better.
DeleteLet me ask you again: is PAL willing to be one-star if it means profits for them? Whilst I think that PAL has to consider profit, where does that leave what the Philippines will mean to the rest of the world? Are you saying that they will be willing to be oblivious to what the world does in terms of air carriers as long as their bottom line is black? This is also about giving the Philippines some pride too because everything that puts the Philippines and public transport in one sentence seems to translate to lack of pride, dignity, etc.
ReplyDeletethat is the point of becoming a hybrid carrier. you compromise on different aspects of service.
DeleteAnd losing customers as well.
DeleteAre you saying that they will be willing to be oblivious to what the world does in terms of air carriers as long as their bottom line is black?
Delete"Are you saying that they will be willing to be oblivious to what the world does in terms of air carriers as long as their bottom line is black?" they are not being oblivious because the fact that they are carrying even more passengers than last year means that it is working.
you lose customers but at the same time you get more customers. so pessimistic of you. dont go saying you are being realistic because if so you are only taking into account the cons of the new structure.
DeletePAL and PAL Express should again be segregated. Let PAL Ex service the domestic network, middle east, and some regional routes with all-economy no frills service on A330/A321/A320. PAL can service the US and Europe along with selected regional routes with the 77W/789/A330. No confusion and allows customers to choose the service they want to pay for.
ReplyDeleteLet me ask you again: is PAL willing to be one-star if it means profits for them?
ReplyDelete-- I'd rather see PAL be profitable again. Not like those US carriers going bankrupt or during the 90's when PAL closed due to it's "ambitious" refleeting plan. So where did that refleeting lead them to? Shiny new airplanes yeah, but mismanagement, labor disputes and the financial crisis brought it down. PAL is right in what it is doing, going for the correct demographic and streamlining!
I agree. The reason PAL express technically still exist is for when Ang needs to revert back to a 2 brand system. They reason they were consolidated is to save costs. When their situation gets more favorable (financially, demographically, and airport wise) management will respond to the market by dividing PAL again.
DeleteIt's like a person having a heart attack, would you give them cpr? or try to heal them with a long term solution?
And the reason A340 still exist, is to serve long haul flights. People have problems with A340 not having IFEs. It doesn't make sense to put IFEs on them if you're going to get rid of them soon anyway. Now Tan, needs to step back so the future of PAL is dealt with and SMC is can order/lease new 777s.
DeleteThis article is correct in many ways, but it fails to see where Ang is coming from (financially and strategically).
While the article may not focus on Ang's perspective strategically and financially, I'm confident that people understand it. However, the point that people are attempting to make is that there are other ways to make PAL profitable. Ang has clearly shown us one way which pleases some and disappoints others. But it is NOT the only way for PAL to be profitable. Ang has shifted PAL to a hybrid model -- that's one way to make money. Does this concede then that Ang does not know how to make PAL profitable as a full service legacy carrier? People seem to be unhappy that PAL is ditching many of its full-service frills. Nobody actually doubts that Ang knows how to make money, the doubt is whether it is sustainable and the right direction for PAL. In my humble opinion, all domestic flights should be operated by PAL Express as no-frills LCC even with buy-on board just like the US. Perhaps even some regional routes would be appropriate for this as well. However, long-haul flights should all be full-service with built in IFE. Be a "value" carrier like Aer Lingus. It seems to work well. If PAL wants to continue serving the Middle East with a budget brand, then that's fine but they need to better distinguish it and not paint the planes the same livery! All other long-haul aircraft need to be equipped with IFE. Even the A321 fleet should at least have wireless IFE. In the US, domestic routes are offering IFE and WiFi for free or an additional charge.
DeleteI agree with you although in a financial standpoint PAL needs to keep doing what it's doing now. The airline needs to earn capital in the SHORT TERM, fix management. After SMC gets them out of the rut then it's time to venture out in a two brand system again. To each his own. One thing is for certain, it will be bad news if Tan takes back control.
DeleteAre you saying that they will be willing to be oblivious to what the world does in terms of air carriers as long as their bottom line is black? -- PAL is a business. Business are run to make money. That is the bottomline.
ReplyDelete1. To say that customers don't know what they are flying with and the level of service that they expect is hogwash. They know the difference between PR and the rest of the airlines.
ReplyDelete2. To confuse PR and 2P branding strategies is pointless. The author said it himself - it was supposed to be indistinguishable. The only thing gone wrong is the execution as PR is having fleet transitions to reflect the change.
3. IFE? I think PR is also transitioning to streamed entertainment via WIFI to the passengers own devices. Heck, even Virgin Australia and Qantas is doing this already.
4. Apparently, RSA just turned PR around this 2Q of 2014 and PR is now earning money so the strategy is working.
5. A340-300 as "old aircraft"? This obsession on newness is overblown. Airlines all over the world are still using these planes!
6. Just because you don't like the seat configurations, the perceived "lack of IFE", the plane is not new enough, or the fact that the planes are leased, doesn't mean that the service is not good.
6.Flew from BNE and DPS on PR and the flight was full and the service was efficient. One complaint does not generalize the service of an airline.
I dont think PAL will be in black for a very long time anyway. I think the only readon why they were able to post some profit is because of their newer planes saving them big bucks in terms of fuel costs. But I won't be surprised if they go back to red sometime soon, specially when they start expanding routes with their substandard product. I think that their domestic and short haul international segment will do just fine but their international long haul, with the exception of those being sreved by the B777s, will suffer ill fate and eventually get axed.
ReplyDelete1. Let it go back to Lucio Tan and sigurado malulugi ulit ang PAL.
Delete2. Getting newer planes is precisely one strategy to reduce costs!
3. Substandard product? I would assume that you have not flown PAL at all, or maybe you are not actually traveling at all!
4. You are such an armchair CEO.
Hahaha... Search mo kaya name ko sa FB. Makita mo pa ang pic ko sa business class section ng B777 ng PAL. Hindi ako katulad mo. Ang comments ko dito are all based on my own personal experiences hindi lang sa airline na ito. Afterall, I'm a leisure traveller not just to the Philippines but in other parts of the world. Marami na ako nasakyan na ibang airlines at alam ko ang sinasabi ko.....hindi katulad mo... lol
Deleteoh my ang humble mo naman pala. Wouldnt be surprised kung wala ka pang love life...I am deviating from the topic. Point is PAL is obviously degrading their product according to the market. duh
DeleteAt sino market nila? Ikaw na humble din? Na assuming na ang mga nagcocomment dito ay hindi pa nakasakay ng eroplano? At feeling may lovelife ka? E sino magkagusto sa isang ignoranteng katulad mo?
DeleteDegrading according to the market? Therefore, you are suggesting the either Filipinos are becoming "cheaper" or "poorer"? Given the recent economic upswing in the Philippines and the rise of a stronger middle class in Manila, wouldn't you expect the opposite to happen? Why would anyone want to fly LCC if they can afford a full service carrier? It's false logic to assume that anyone who can afford to fly, wants to fly a) at the cheapest price or b) a LCC carrier. If that were true, then why are most of the foreign carriers successful in the Manila market? These are all more expensive, premium carriers and yet they manage to fill their planes and they are filled with Filipinos. That means not everyone wants to fly PAL. Furthermore, many of these carriers would likely expand if NAIA was not so congested and the government was not protecting PAL with their bilateral air agreement restrictions.
DeleteHere's an interesting note. Can anyone see a correlation between the respective IQ of the various countries in Asia and the performance standards of their national carrier?
The country with the highest average IQ score is Hong Kong (with 107), followed by South Korea (106), Japan (105), Taiwan (104), Singapore (103), Austria (102), Germany (102), Italy (102), Netherlands (102). The US scored 98. On the other hand, the Philippines (86) keeps for company countries such as Libya (84), Lebanon (86), and Burma (86). China, Thailand, and Indonesia all scored higher than us (100, 91, 89, respectively).
Let's also consider that many Filipinos choose PAL by default because they are not aware of other options available to them. There are a number of people who do not travel frequently and therefore don't take the time to research options. Furthermore, the Philippines has a notorious reputation for favouring locals over foreigners in terms of taxation and it was only until last year, that the common carrier's tax was removed. That tax clearly provided PAL with a clear advantage, creating an unfair competitive landscape. The truth is foreign carriers don't need the Philippines.
DeleteSo let me put it this way with how you are saying it: PAL is a three-star carrier, ranking 97 out of 100. Hardly any awards to speak of. the only thing that matters to them is money, never mind letting their passengers suffer. As much as it is about money to you, it is about giving the Philippines a good image too. Didn't you think about it? Everything that puts Philippines and public transport in one sentence seems to spell "cr@p".
ReplyDeleteAll other major carriers score higher. They are each giving their base countries a good image even if their passengers have no time to fly through them.
This is not just about profits. This is about taking care of the passenger and what image we want others to have about Philippine public transport. If we are talking about Cebu Pacific, AirAsia Zest or the defunct Grand Air, we can let them do this because they don't bear the flag. In fact now that I think about it, the US carriers can do this too because it has no flag carrier. But whether you like it or not, PAL carries with it the reputation of the Philippines. I am just disappointed that by just making money, it is projecting an unfair image associated with Filipinos: "pwede ang pwede na yan". As long as it makes profits, "pwede na yan". Is that where you want to leave it?
Plus we are just talking about one quarter. This is the short-term. We are looking into the long-term when PAL has established its identity (or lack of it).
Okay then let's upgrade all of pal's planes and expect pal to be profitable. Let's also wish that if they lose money, the losses wont amount to the losses of Garuda. Let's also wait for PAL to lose all their money maybe by 2020 ha ha ha ha
Deletegotta love your ideas, hybridace
keep it up
1. Letting their passengers suffer? If they are suffering, PR should be losing passengers by now! And yet 1H figures are higher than last year!
Delete2. Who said that the Philippines has a bad image? Kayo lang na nandyan sa Pilipinas nag-iisip nyan. The image here of the Philippines is great!
3. Sino nagsabi sayo na hindi designated flag carrier ang Cebu Pacific? Flag carrier yan!
4. Have you traveled recently hybridace?
Kung makapagcomment naman etong isang to, akala mo sya na lang ang nakakasakay ng eroplano. Bakit kailangan personalin ang mga nagcocomment dito. Halatang halatang ignorante at walang basehan ang mga pinagsasabi mo. Sino daw nagsabi na ang Pilipinas ay may bad image? Ewan ko kung nasaang parte ka ng mundo, pero sa kinalalagyan ko, ang mga nababalitaan ko ay ang pagkadiskaril ng MRT, ang pamamaril ng mga riding in tandem sa mga biktima nila, ang mga aksidente ng mga bus sa kalye, at kung ano ano pa.
DeleteMay nalalaman ka pang armchair armchair CEO at whiners.... Hello.... customer ako, kung hindi ako magrereklamo, gaganda ba ang produkto at serbisyo? Tanga ka!
DeleteIt's not the perception of the A340s being old but it's the lack of personal IFEs and overall quality of product on these planes serving the long haul routes that are also being sreved by top quality airlines. Why would I fly with PAL's A340 that is lacking personal IFEs on a 16 hr flight if I can fly with Korean Air that has personal IFEs and guaranteed top notch service for a much cheaper price? I don't think people has a problem with PAL's old A340s but the problem is the lack of personal IFEs on long haul and PAL's overall inconsistency.
ReplyDeleteIf that is the case, PAL should have been losing passengers by now to these "top" airlines with "personal IFEs" not to mention PAL should be out of business by now.
DeleteSo if PAL is not cheap, plus "without IFEs", why are passengers still flying with PAL when they have better choices. And PAL is making money!
Ano kaya ang dahilan? Try flying kaya with them for you to find out.
Armchair CEOs like you are such whiners.
I did already and I was on their mabuhay business class from Toronto to Manila and back last December. I did not have a problem back then because the plane that they are using are the B777s that has the most modern ameneties in all of PAL's fleet. Sadly thet only have 6 of these planes, and only these planes have personal IFEs, and starting April next year, they will deploy all their B777 exclusively to the US and they will be downgrading their Toronto flights to the old A340s that does not have personal IFEs. Then it becomes a problem because people have come to expect the same product from PAL and specially now that PAL is gaining more traffic from Toronto. Then ano mangyayari? Then mawawala ulit ang mga tao. You are asking bakit may sumasakay pa rin sa PAL, natural e ok naman ang domestic at short haul operation nila. Bakit kumikita? Di ba nga nagpalit ng mga bagong etoplano na mas fuel efficient. Dun galing ang kita nila. Pero in the long run, lalo na pag nagintroduce sila ng mga bagong long haul routes na walang personal IFEs at iswitch sa mga lumang eroplanong walang personal IFEs ang existing long haul flights nila, ay dyan na sila malulugi.
DeleteI think what PAL needs is consistency of product. All domestic and short haul flights can go without IFEs. And all long haul flights should have personal IFEs
ReplyDeleteOne quarter of profitability is no proof of concept. There is no sustainability in a model that is not customer-centric. People keep complaining about the A340 fleet because PAL currently has no plan to replace them. The problem with the fleet is not the age of the aircraft, but rather the lack of amenities. When they announce an order for new aircraft, people will settle down. But clearly, based on what everyone is stating here, Filipinos do not know how to make money with a full-service legacy carrier, and that is why they settle for hybrid because they don't know how to run a full-service carrier profitably. Sad...just sad....
ReplyDeletePeople keep complaining about the A340 fleet because PAL currently has no plan to replace them -- They are going to be replaced starting from RP-C8771. These are said to have much better cabins, with Business, Prem Economy, Regular Economy and even Budget Economy sections.
ReplyDeleteThe A-340s are gas guzzlers. It's why Iberia got rid of them and now PAL has them. Cathay Pacific is also phasing out their A-340s. And so is Thai Airways.
ReplyDeleteExcuse me HybridAce101, I suggest you understand first the whole concept of a business before yapping around because you reason as if money is a commidity and PAL has infinite bags of cash. You have to really study how you spend cash. The market is changing and you also need to change your product according to the needs of your market. It is inevitable to compare PAL to other carriers but the market of PAL is different.
ReplyDeleteyes, 1Q cannot tell us of development in the long term but does exquisite service guarantee profitability in the long term?
ReplyDeleteAlright I wouldnt fault Ang so much for prioritizing profit over the short term. Sure he is an astute businessman foremost of all. Unfortunately at present, Ang is not the only person charting the direction of PAL - remember Lucio and his sons have more voice in the present direction of PAL, having 51% control. In the years PAL was under Lucio & Sons, PAL started to transform into a cheapy cheapy airline. Hopefully, Lucio will gracefully step aside. In which case, Ang will have the free hand to rebuild PAL. Sadly for these 2 billionaires, the brand of PAL is synonymous to a full service airline and not of an LCC. I hope they understand how to put the brand of PAL at least in the league of its contemporaries in the region like Royal Thai Airlines (4-star), China Airlines (4-star), Garuda Indonesia (4-star) and still make money. That really takes a genius. But if others can do it, why cant PAL?
ReplyDeleteyou guys are taking pal's move as something suicidal and not strategic
ReplyDeleteAng doesn't even know how to spell the word strategy...
DeleteI'm still waiting for them to rebrand their London flights as PAL Express, given the low standards now offered on this route. At least they'd be more honest about the experience!
ReplyDeletePAL's is currently having dismal figures for its London service, this is why they chose to downgrade it to A340. For all I know, PAL is putting up with it despite its difficulties just because getting slots at LHR is close to impossible. I just hope they upgrade to a better aircraft once those become available.
DeleteThis is one of the best analyses out there of PAL's sad current state of affairs. Well done HybridAce101! There are a lot of armchair CEO's here who think they know it all, not to mention RSA apologists, etc, etc... This is the power of the internet. Even people who've never set foot on an aircraft or been outside the country, or heck, never been to school, can post their comments and thoughts. Fine, you all have valid arguments. But just to show you how PAL's reputation has become among us, international business travelers, let me give you an example:
ReplyDeleteI have to travel for business, in business class, 4-6 times a month, to London, Vancouver, San Francisco, Sydney, Dubai, Hong Kong & Singapore. These are the locations of my satellite offices and I have to visit all of them at least once every 2-3 months. These are all nonstop PAL destinations from Manila, and I would be their natural customer. Heck, I'd be perfect for them - last-minute traveler who doesn't mind paying top dollar as long as I get the best bang for my buck. But sadly, I refuse to give PAL any of my business. Why? For the very reason that HybridAce101 has pointed out: PAL has decided that I will not be their target market, which is fine, that is their choice. I'm sure they earn more from the visiting friends and relatives, once a year travelers who purchased their heavily-discounted tickets way in advance. Or the flights full of weekend madness-fare passengers, or those who purchased their tickets from the travel trade fares in SMX. Some claim that Manila is not a premium market, and I get that. But believe me, I have many more colleagues, friends & family who would be PAL's natural customers for their premium products, who are all flying other carriers because they get taken cared of better over there. We may be a small market, but our market is very lucrativel and we will vote with our wallets. Case in point - I flew in on QR just 2 days ago, from LHR via DOH. I was surprised to see the number of connecting pax to Manila in the business class cabin of the 787 from LHR to DOH. It was a who's who of Manila's social sets: CEO's, businessmen, even a former beauty queen-turned-businesswoman. Why were these people not flying PAL? There was a non-stop flight on that very same day, and when I checked it was actually empty. But it doesn't matter. We flew the airline that wanted our business more, so it was a win-win situation. Too bad, so sad for PAL.
I see your point as a valid consumer, but i believe you're comparing apples to oranges. QR has a bigger hub via DOH, while PAL has an excuse for an airport called NAIA. QR can provide that level of service at almost the same price as PAL because of economies of scale. PAL is barely surviving. You guys just continue to YAP about it. Iba talaga mga pilipino, utak talangka talaga.
DeleteYAP? You can't take it because we're right! At the end of the day, the customer is always right. You & the rest of the PAL apologists are just typical Filipinos with the pwede na mentality! And if that's the case, this airline should just fold! In this day & age of free markets, there is no such thing as a flag carrier! No airline is too important to fail! Someone else will take over the slack.
DeleteThis joker thinks the #1 priority in business is the customer. Nope the #1 priority is to make money. Get a reality check and I hope u don't ever start a business soon hahahahah
DeleteGuess what douche bag? I make lots of money running my own businesses because our #1 priority is to provide excellent service to my customers! I hope you don't ever get hired by a decent company because you deserve to mop floors in a mortuary!
DeleteThen let me ask you this, why did u start your business?
DeleteAnd don't say "to provide customers with the best service" cause that is the romantic answer and farther from the truth. Tell me why did you start your business?
Here's your answer: To make MONEY.
You are successful because: You identified who your customers are and those customers want "excellent service"
PAL has a different kind of customer and therefore adjusted to their needs. I don't think you understand what PAL what has gone through over the years...at all.
hmm a janitor makes valid points too. don't you think? ;)
Sure a businessman starts a business to make MONEY. But that is just one side of the coin. The other side of the coin is to make the customers HAPPY to be able to sustain the business over the long term.
DeleteAnd I come back to my point. What is the #1 priority? It is still to make money. The customer is still secondary.
DeleteIf you make customer's happiness #1 then you would charge them nothing. That would make them even happier. Customers will spread the word and more people would come. But no a businessman wouldn't do that because his #1 priority is to make MONEY. Unless this guy is running a charity.
So I'll go back to your last statement. Why would you want to sustain your business over the long them? It is because you want to make MORE money, in other words, to keep your income flowing.
Profit over cost remember? Business 101
Revenue over expenses is what I meant. But you get the idea
DeleteLonger term you won't make any money if customers are not your main priority. They can get away with it now, but very difficult to lift a brand once it's been devalued.
DeleteExactly! Mr. Business 101 there is probably a local college grad at best. Welcome to the age of globalization! Think Wharton, Insead, LBS! PAL may be for Filipinos only but it operates on the global stage! And Filipinos are starting to be more discerning & they will vote with their wallets. People should stop thinking Binondo-style hardware shop! Money can easily be lost. Customer is always king, & businesses who believe in this will thrive long-term!
DeletePAL is maximizing in the bigger percentage if their market.
Deleteokay?
okay
I said that making money comes before customers. Would you rather PAL cut costs? Or keep bleeding money to serve customers like you. People who still expect PAL to act like QR.
DeleteAlso brands are financially impossible to get devalued if they are profitable. Might be devalued to you but not to new users.
BTW I'm a college grad in the states. You act like that's a bad thing when I in fact raised valid arguments to a business man here. pffft good luck with that.
PAL already did cut costs to make money by bringing in their modern fuel efficient fleet in favour of ditching the fuel guzzlers. That was already enough to restore profitability. They didn't need to ditch IFE and other amenities. PAL Express can serve the local price sensitive market. PAL needs to carry a higher standard and do so profitably. There is an entire Terminal at NAIA full of 4 star carriers who all make a profit on the MNL route. PAL competes directly with most of those carriers but is losing business to them because their product sucks. If PAL is so smart, why do they keep downsizing their original new aircraft order from Airbus, clearly they aren't as confident of their own business model or long term profits...
DeleteAnd RSA is not the business demi-god that people here claim he is. He never built any of the businesses he heads. They were all due to Danding Cojuangco. RSA was his mechanic! Completely unpedigreed but was a talented Mr. Ripley who was able to convince Danding to put him at the helm of SMC. RSA or not, the company's fundamentals were already sound that it's success would have been guaranteed even if u put a monkey at the top! RSA knows jack shit. All these people commenting & praising him don't know anything about running a business. They're kids & aviation enthusiasts! I bet you they don't even know the name of someone like Gordon Bethune! Remember his name - that's how an airline is supposed to be turned around, monkies!
Deleteafter 5 straight years of Mabuhay Premier Elite status, PAL just lost my business for the reasons stated earlier. PAL does not know how to take care of their consistent business travelers who pay top dollar. Case is they bumped me off a choice seat and gave it to a PAL crew member in transit. No need to raise a fuss, I decided there and then to take my business and that of our companies to other airlines.
ReplyDeletePH has turned into a LCC market where there is money to be made. At least 5J admits they are LCC, PAL does not.
The "pwede na" mentality is not always wrong. There instances when that kind of mentality fits the standard or the market. Of course, no airline is too important to fail...is that what you are thinking of? so ridiculous of you. You may be an avid traveler but it seems as if you knowledge is stagnant. You are speaking only as a passenger and you don't represent the bulk of PAL's market. That "customer is always right" statement is just wrong and I cant believe that you are bringing that on the table. I love how you and HybridAce101 think alike. If there is a statement "great minds think alike", in your case it's "narrow minds think alike"
ReplyDelete:*
Then if there is a word that describes you and your pwede na mentality, it's mediocrity. And that term has no place in business, even in life. Your way of thinking summarizes everything that is wrong in Philippine society, from politics to business (as seen here with PAL). People do not strive for excellence. Please! At least HybridAce101 had spent a lot of time researching his argument, and presenting his case. You have only criticized and obstructed every valid argument, because you're feelings are hurt that your beloved "flag carrier/national airline" is not as loved by everyone else because let's face it - PAL sucks! Who's narrow-minded now? And yes, the customer is always right. Even if they're not, they are! Think outside the box & try handling a customer who's wrong, but nevertheless is right. Without reading from a call center script!
DeletePAL is in the SERVICE industry. The product of PAL is excellent customer service experience which is provided whenever it engages its customers at the point of reservation, ticketing, check-in, baggage handling and most especially whenever it provides in flight services like IFEs, etc. Let's just hope PAL gets it right. Yes, the voice of the customer is always right.
DeletePAL's market is completely different from tge market of the likes of Singapore Airlines and Cathay Pacific so why do you expect PAL's service to be among the best if not the best? PAL caters to a price sensitive market. PAL is a privately owned business. Therefore, they prioritize business startegy to earn over exquisite, irrelevant service.
DeleteChill...huwag mapikon :(
your beloved "flag carrier/national airline" is not as loved by everyone else because let's face it - PAL sucks
DeleteI understand. I am not narrow minded anyway. There are always 2 sides in a coin and apparently you are dissatisfied with a more rational and stategic structure.
"You have only criticized and obstructed every valid argument"
it is a valid argument, yes but criticisms are different from rebuttals.
the "pwede na" is what the consumer thinks when it buys a LCC plane ticket.
Deletebut when a consumer buys a PAL plane ticket, the consumer should be able to say "wow"
the "pwede na" is for the economy class of pal's hybrid structure
Delete"wow" is for pal's business class passengers
when will you understand that PAL caters to a different market?
That is not an excuse. Last time I checked, PAL was a full service carrier, or is claiming to be. So the pwede na mentality has no place in their service culture. It's only for peabrains! They don't cater to a different market. They cater to the same market that every legacy carrier the world over caters to: a mix of leisure & business pax, rich & poor. The fly the same routes as CX, SQ, EK, etc... Plain & simple, they suck because people running the airline have adopted your pwede na mentality. If they admit tomorrow that they want to be an LCC, then I would have no problem & all arguments are dropped! Until then, they will continue to be one of the worst in the world product & service wise. I think it's an embarassment when other airlines' regular economy are better than their premium economy!
DeleteIn my opinion, PAL should just get rid of those cheap minded owners and I refer to Tan. None of his businesses spell CLASS or top rate. His businesses are always in the shadow of the top performer. Never the real deal just the copy cat. How come others in the 1% know how to build Quality and still make money? Example Razon of Solaire, Lopez of Rockwell. And why is it the bad fortune of PAL to fall in the hands of the wrong people. Look at another mistake - the prestigious Manila Hotel! So you see, if some people just want the prestige of the name but don't understand how to sustain the prestige, it will soon go to waste.
ReplyDeleteAny business that requires a certain level of class should not fall into the hands of a taipan. Not being racist, just being realistic here.
Deletewhat i like on PAL Express? Free water, free coffee and peanuts.
ReplyDeletecompetitive prepaid baggage price. 15 kilos, 20kilos... i hope the price will be lower.
what I like about Airphil Express back then? 15 kilos free baggage allowance (included in the promo fare already) plus promo fare. then fly out of good looking NAIA Terminal 3.
what do i like about Cebu Pacific? I can pay on the bank, LBC, Bayad center becoz i dont have my own credit card.
ReplyDeleteand delicious ham and cheese croissant. my favorite....
what do i like about paying in bayad center? i can pay on sundays and holidays... thats why i book cebu pacific if international.
ReplyDeleteInstead of "PAL express", PAL Express has a name "Philippines" on its aircraft just like in Philippine Airlines.
ReplyDeletePAL, along with other Philippine carriers, suffered from European blacklist and FAA Category 2. Kung hindi ito nangyari, sana'y maganda ang pagpapatakbo sa PAL.
ReplyDeleteMali . Yan panahon na yan sumikat at nag umpisa ang Cebu Pacific at kumita pa. Mahina lang talaga si LTan. Kung noon nga ay solo lang ng PAL at wala masyado pagpipilian ay wala naman narating ang PAL kay LTan ngayon pa na madami ng iba dyan. Huwag na sana bumalik si LTan sa PAL. Bye bye na LTan.
ReplyDeleteHere is a strategy:
ReplyDelete1. All new aircraft without IFE
2. Order next gen aircraft for delivery with a new airport around 2025 with a stunning new cabin product.
3. Make Manila a transit hub
4. Move all aircraft without IFE to the LCC as the next gen product comes online
5. Make the LLC like Norwegian, and PAL the lux (think Century Properties)
6. Think outside the box! Seriously distinguish the pal product from others. Dont try and compete head on. Filipinos are distinguished and recognizable throughout the world, make the product just as unique.
7. Logo, branding, uniforms, food, easy changes.
PAL express has lost its identity when PAL initiated its one brand. Even the salaries and benefits of PAL express has not been aligned with PAL, they just used PAL express for their own benefit
ReplyDeleteIt's actually a no-brainer. A legacy airline that follows the templete of an LCC will surely 100% rake in profits.
ReplyDeleteI don't have to be a Ramon Ang or a Lucio Tan to know that.
HybridAce101 if you have a money, buy PAL stakes and strive to be a CEO so that all you want to say in this website may come true.
ReplyDeleteThere are many airlines serving PH, not just local airlines but foreign carriers as well, so if you all don't want to ride PAL, don't ride with PAL, and do not pull other passengers to not ride PAL, because is their choice. Period.
And BTW, Ang just remove labor disputes in PAL so their doing their business very well and LT sees that so he wants to buy it back. It is like LT using SMC as a scapegoat to remove the labor disputes. Shame on LT, I hope Ang's SMC won't allow LT to buyback PAL.
PAL will be better off if Ramon Ang prevails. But Ang should also know how to listen to customer feedback especially now that customers are taking note that PAL seems to be in a strategy to market a legacy image but offer LCC amenities. Isn't that a subtle form of deception?
ReplyDeleteI agree with you! Now with major int'l airlines are shifting to T3, I might think twice booking my ticket with PAL from US to PH if I get the same service between PR/2P and 5J in domestic routes.
DeleteI think that PAL wants to follow Qantas and QantasLink. In Australia, most of Qantas' regional flights are operated by QantasLink. QantasLink brings their passengers to their hubs and flies international bound passengers with Qantas. Also, QantasLink serves one international destination (Port Moresby)
ReplyDeletePhilippine Airlines=Qantas
PAL Express= QantasLink....
I'm flying PAL because of the connectivity from US to domestic flight and making most of precious time but comparing the service 3-4 years ago compared today, it's totally different (worst). If i have to chose, I still want to fly Philippine Airlines than PAL Express. I even insisted not to book on CEB because I'm assuming a better service to my disappointment. What's the issue, its because of differentiation. I'm expecting a Philippine Airline service but getting a LCC feel (ironic).
ReplyDeleteBusiness point of view, PAL is doing good for now which is ok to make more room as they move forward.
Brand wise, you should be the benchmark of the services, not the other way around which disappoints customers if the differentiation is not so clear. They can fly the same livery just put the "express" like they did before then customers will be never expecting such service of a full-service seating on a LCC plane.
If I could suggest, if PR can also fly just even once a day in a while in some of its services in its domestic route known to have higher level of premium traffic like Cebu, Davao, Iloilo, and General Santos.
I remembered back in 2011 when there was limited flights because of strike in PAL and we need to book CEB, all of my colleagues that I used to fly with the former were having a hard time coming up and down the ramp because aerobridges are not used. This kind of inconvenience esp now having a baby with you is quite a hassle!
But now, in PH, you never have a good choice in traveling whether be it PR, 2P or 5J.
I think the PAL group should have a full service carrier (PAL) a regional low density carrier (air philippines) and LCC (pal express)
ReplyDeleteone must wonder why Philippine Airlines continues to claim two distinct identities when in reality, it's very challenging to spot any difference from a customer point of view between Philippine Airlines and PAL Express----um, that's precisely the point? Two airlines, one brand. It's all about entitlements as well and PAL express (not "PAL Express"btw) riding on the goodwill and strong brand name of Philippine Airlines. I think PAL at the end of the day wants to hit 2 birds with one stone. Utilize the strong brand of Philippine Airlines and still be able to compete with 5J on cost and service. A legacy carrier on some destinations (long haul) and an LCC-type for Middle East markets. What you call "identity crisis"may just be a misinterpretation of something which the Philippine aviation industry cannot yet grasp at this time--hybridization. Anyway, it remains to be seen whether this vision will be carried out to fruition given the impending LT vs. SMC buyout/shootout. Let's see if LT Group will indeed do better than SMC,considering that when smC bought into PAL 2 years ago, PAl was already on the verge of bankruptcy!
ReplyDeleteYes, that is precisely the point, which is why the article clearly stated: "When Ramon Ang decided to re-brand airphil express as PAL Express, he was attempting to raise the profile of the national flag carrier by creating a common identity with a uniform set of standards system-wide." Indeed, PAL Express has been successful in riding the goodwill of PAL has highlighted in the article. However, PAL Express has downgraded the brand reputation of PAL into that of a LCC or hybrid carrier at best. What's so strong about that? "A legacy carrier on some destinations and an LCC-type for Middle East markets"....doesn't that sound confusing to you? That's not a hybrid strategy. If PAL wants to be a hybrid, then they have to do it across all of their markets. How would the average consumer know that if they book with the brand "Philippine Airlines" that it behaves like a LCC in the Middle East but like a Full-Service Legacy in the US? Confusing Much! It's fine if PAL wants to deploy a LCC style of service to the Middle East, but it must do so under a brand that is clearly distinct of the Philippine Airlines brand. Do you think it would be appropriate for Jollibee to have a completely different menu in each city they serve? How would anyone know what to expect when they enter a Jollibee restaurant? How does anyone know what to expect when they board a PAL aircraft? What does the brand represent? It's confusing! The onus is on the carrier to clearly market, sell, and communicate their brand. It's not the responsibility of the passenger to "interpret" it correctly. If passengers have misinterpreted it, all that means is PAL has not done a good enough job of distinguishing and clearly communicating their brand. That's PAL's responsibility, not the consumer. If PAL has successfully communicated one brand trait, it's mediocre.
DeleteRSA is like a breath of fresh air to PAL. Lucio Tan is just bad breath.
ReplyDeleteBy pass the name branding. Just concentrate better service especially to fellow Filipinos. At times, crew members serve non Filpinos better during flight times. I believe we paid the same fare , so equal service is deserving not because we are only locals. Anyway, improve the Manila airport also. I look so dirty , disorganized and a third country airport.
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ReplyDelete