1. 1.

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2. 2. PHILIPPINE AIRLINES Vincent Raymond A. Adriano Edwina M. Arceo Vivian T.
Dabu Maria Farrah Feliciano Irish G. Sanchez 2
3. 3. 61st largest airline in the world in terms of revenue passenger kilometers
flown.Mission: to serve as a partner in nation-building 3 13th largest corporation in
the Philippines in terms of revenue and 21st largest in terms of assets in 2005
Philippines’ Top 500 Largest Corporations.  PAL Holdings (PSE: PAL) – holding
company, part of a group of companies owned by business tycoon Lucio C. Tan.
COMPANY PROFILE
4. 4. February 14, 1946 – resumed operations after WWII interruption servicing 15
domestic points with 5 Douglas DC-3s. 4 September 1941 – Philippine government
invested in PAL, paving the way for its nationalization. March 15, 1941 – airline’s
first flight with a single (twin-engine, 5-seater) Beechcraft Model 18 NPC- 54
between Manila and Baguio. February 26, 1941 – established by a group of
businessmen led by Andres Soriano and former Senator Ramon Fernandez, who
served as its Chairman and President.COMPANY PROFILE
5. 5. December 1946 – regular service between Manila and San Francisco.
Designated as the country’s flag carrier. 5 July 31, 1946 – first Asian airline to cross
the Pacific Ocean with a chartered Douglas DC-4 ferrying 40 American servicemen
to Oakland, California from Neilson Airport (Makati) with fuelling stops in Guam,
Wake Island, Johnston Atoll and Honolulu.COMPANY PROFILE
6. 6. 1980s – massive modernization of domestic fleet. 6 1970s – one airline policy
under Marcos government; comprehensive modernization program implemented.
1960s – first privatization with then PAL Chairman, Benigno Toda, Jr. acquiring a
majority stake in the airline. 1950s – founding of the country’s own national
airline.COMPANY PROFILE
7. 7. 1997 – rebranded itself as “Asia’s sunniest airline”; commenced unprofitable
routes (eg. Manila to New York via Vancouver) 7 1996 – US$4 billion
modernization and re-fleeting program aimed at making PAL one of Asia’s best
airlines in 3 years.  January 1995 – Lucio C. Tan became the new Chairman and
CEO.  1990s– re-privatization and second expansion COMPANY PROFILE
8. 8. June 4, 1999 – SEC approved the rehabilitation plan after Lucio C. Tan and his
associates infused another US$200M capital. 8 December 7, 1998 – submitted a
“standalone” rehabilitation plan to SEC.  October 7, 1998 – resumed operations
with services to 15 domestic points out of Manila.  September 23, 1998 – complete
shutdown of PAL operations, the first Asian airline to do so and one of the largest
corporate failures in Philippine history.  1998 – full impact of Asian financial crisis,
aggravated by industrial action by its union. COMPANY PROFILE
9. 9. October 4, 2007 – released from receivership. 9 Continued with restructuring
(outsourcing of maintenance and engineering division to LTP); aggressive marketing
strategies (rewards programs and online booking); re-fleeting and modernization;
and opening/restoring of domestic and international destinations.  2000s– returned
to profitability with Php44.2M in its first year of rehabilitation after 6 years of heavy
losses. COMPANY PROFILE
10. 10. November 2007 – granted by Centre for Asia Pacific Aviation for its "strategic
contribution to the aviation industry through a significant transformation by
successfully restructuring its operations through innovat Airline Turnaround of the
 Year 2007  February 2007 – accredited by International Air Transport Association.
IATA Operational Safety Audit COMPANY PROFILE May 2010 – granted by
respected international publication Reader’s Digest in its annual, Asia-wide survey.
10 Most trusted airline brand for Filipino consumers ive cost-cutting measures
resulting in operating profits.”
11. 11. Labor disputes vs. Outsourcing 11 Continued re-fleeting and modernization 
2010s COMPANY PROFILE
12. 12. Does being first always translate into a successful marketing strategy? 12 How
service differentiation enables an airline such as PAL to stay ahead in the fight for
market share? The approaches that PAL has used to stay competitive in the global
airline industry.PROBLEM IDENTIFICATION
13. 13. Adding/restoring international routes 13 Re-fleeting and modernization
programA. PAL APPROACHES
14. 14. Strategic local routes 14A. PAL APPROACHES
15. 15. two baggage carousels in the arrival section 15 expansive waiting lounge 
medical clinic,  refreshment bar,  Express Counter,  exclusive check-in counter
for Mabuhay Class passengers,  renovated Mabuhay Lounge,  Refurbishingof its
Domestic Terminal 2 and NAIA facilities – A. PAL APPROACHES
16. 16. Garuda Indonesia 16 Airphil Express  Malaysian Airlines  Gulf Air  Qatar
Airways  Etihad Airways  Emirates  Cathay Pacific  Codeshare agreements as
of February 2011 A. PAL APPROACHES
17. 17. With You All the Way 17 Asias Sunniest  On the Wings of Change  Pilipino,
Para sa Pilipino (Filipino, for the Filipino)  Shining Through - concurrent with the
slogan The beauty of the Philippines that heavily promoted Philippines as a tourist
destination. The TV advertisement clip won a finalist in Clio Awards.  Welcome
Aboard the Philippines  Asias First Airline  Mabuhay  SLOGANS AND
ADVERTISING A. PAL APPROACHES
18. 18. Asias First, Shining Through - introduced for PALs 70th anniversary, it combines
two previous PAL slogans: Asias First Airline and Shining Through. 18 With us,
Youre always no. 1  Clearly no. 1  Love at Thirty Thousand Feet is the de facto
theme song of the airline. It was composed by Jose Mari Chan and is still being used
today. The song has many variations, including a version for the PALs Swingaround
tour package advertisement.  Its About Experience - introduced after its 60th
Anniversary. It attempts to highlight the fact that PAL is the first and longest- serving
airline in Asia under its original name. The slogan was also used in the airlines ad
spot featuring Kevyn Lettau, which incidentally featured her song, "Sunlight." 
SLOGANS AND ADVERTISING A. PAL APPROACHES
19. 19. 2 classes: Mabuhay (business) and Fiesta (economy) 19 Mabuhay club
members perks and benefits  Comfort and style - Filipinos are very particular with
“status symbol,” “comfort” and the perks that comes to with the “status.”  Availability
and accessibility - with codeshare partners as well as presence in 31 international
and 29 domestic destinations Legacy airline - being the known flag carrier in the
past, having carried past Presidents of the country, it augurs well to Filipinos abroad
who are coming home for a visit or for good, after long absence.B. SERVICE
DIFFERENTIATION
20. 20. State-of-the-art inflight entertainment systems 20 LCD television screen
showing actual time, altitude, temperature, estimated time of arrival and others. 
Meals and beverages  Seating comfort – more leg room and space to recline. 
Mabuhay lounges  TRAVELERS’ AMENITIES B. SERVICE DIFFERENTIATION
21. 21. “The re-fleeting progC. BEING FIRST = SUCCESSFULMARKETING
STRATEGY? Union activism and employees discontent aggravated this. 21 One
factor is acquiring too many aircrafts while matching them with unprofitable routes. 
PAL is an example of a company that have tried to be first in service and product
innovation but failed due to many factors. ram enabled PAL to be dubbed as the
first airline in the world to operate the full range of new-generation Airbus aircraft.”
22. 22. MARKET ANALYSIS: AIR TRAFFIC DEMAND FROM PHILIPPINES(domestic &
International) Year O&D % Change Market Leaders Passengers 2010 27,886,183
11.6 % Philippine Airlines (32.3%); Cebu Pacific (29.8%) 2009 24,997,378 9.3 %
Philippine Airlines (35.1%); Cebu Pacific (28.9%) 2008 22,862,890 11.7 % Philippine
Airlines (35.5%); Cebu Pacific (24.3%) 2007 20,473,663 11.5 % Philippine Airlines
(35.2%); Cebu Pacific (21.1%) 2006 18,369,474 8.4% Philippine Airlines (36.1%);
Cebu Pacific (15.7%) 2005 16,946,099 - Philippine Airlines (38.8%); Cebu Pacific
(14.1%)Source: IATA BSP (January 2010 – December 2010) 22
23. 23. Communication - advertising 23 Outsourcing and restructuring People - labor
unrest  Process - online booking Promo or seat sale Pricing - vs. budget fares 
Fiesta (Economy) class Product - fly in style and comfort IDENTIFICATION OF
ALTERNATIVES
24. 24. Domestic Fares We offer special discounts for specific individuals. 24 PAL
Corporate Sales Special perks and added convenience for our corporate clients
courtesy of PALs Corporate Sales unit.  Regular Buy One Take One Enjoy our buy
one take one offers on Mabuhay (Business) class for selected routes. Available for
sale at any PAL Ticket office.  Special Web Fares – Calendar Pricing All-year-round
special fares when you book online.  PAL-Hilton Cebu Promo Avail of our
irresistible package promo in Cebu and stay at world- renowned Hilton Cebu Resort
and Spa. Valid for sale and travel from 15 September 2010 until 31 March 2011. 
From Manila to LAX/LAS/SFO Web fares from Manila to Las Vegas, Los Angeles or
San Francisco.  LOW-COST CONCEPT OF BUDGET AIRLINES CRITICAL
ISSUES
25. 25. SELF-SERVICE TECHNOLOGIES – online booking service that accepts ticket
purchases and credit card payments for all flights. 25CRITICAL ISSUES
26. 26. Results: Savings and improved employee- per-aircraft ratio 26 downsize
medical, IT and HR units  call center reservation operations to ePLDT Ventus 
airport (cargo handling) services to Sky Logistics  in-flight catering to SkyKitchen
Philippines  OUTSOURCING AND RESTRUCTURING CRITICAL ISSUES
27. 27. the suspension of its remittance facilities by the International Transport
Association. 27 the ban of its entry into 27 European Union member-states; and 
brought about by surging fuel prices;  Effects: ○ retrenchment of some 2,600
employees ○ help reduce its accumulated net losses and deficit  OUTSOURCING
AND RESTRUCTURING CRITICAL ISSUES
28. 28. corporate social responsibility. 28 positive image of its Chairman and CEO;
and  on time arrivals and safe travel;  affordability and accessibility of its flights; 
labor unrest and its effects on its flight schedules, performance, and commitment; 
 Asidefrom the news briefings, PAL has no aggressive marketing strategy to combat
the negative issues besetting it: ANALYSIS
29. 29. Operational efficiency 29 Continueits CALL FOR EXCELLENCE campaign to
serve its market better.  Be involved in the efforts of the government to assist
distressed OFWs and calamity-stricken countries Be involved in promoting the
Philippines as a tourist destination  Improve on this distinction  FSC and not LCC
 LEGACY AIRLINE RECOMMENDATIONS
30. 30. http://www.1000ventures.com/business_guide/differentiation_ strategy.html 30
3. Differentiation Strategies, Differentiate Your Product, Differentiate Yourself
http://www.pearsoned-asia.com/marketingmanagement asia /2/home.html 2.
Marketing Management- An Asian Perspective
http://www.centreforaviation.com/news/2010/09/03/philippine- airlines-struggling-as-
cebu-pacific-becomes-largest-carrier-in-the- philippines/page1
http://www.skyscrapercity.com/showthread.php?t=859722 http://tourism-
philippines.com/philippines-airlines-review/ www.philippineairlines.com
http://en.wikipedia.org/wiki/Airline http://en.wikipedia.org/wiki/Philippine_Airlines 1.
Philippine AirlinesREFERENCES
31. 31. MABUHAY! Atty. Vivian T. Dabu Marketing for Managers Ateneo-Regis, AGSB
Clark ian8dabu@yahoo.com 31