09 June 2009
PAL goes "Back to Basics" to cope with travel slump

KUALA LUMPUR (June 9, 2009) – As the aviation sector braces for more difficult times ahead, the world’s airlines are adopting a host of measures to cope with the expected dent on profitability.

At the sidelines of the International Air Transport Association’s (IATA) annual meeting here, Philippine Airlines (PAL) president Jaime J. Bautista said the flag carrier hopes to live through the crisis by going “back to basics”.

“PAL is aware of the challenges facing the airline industry. We hope to adapt and cope with the current market volatility by focusing on product improvement, asset and cost management and business efficiency,” Bautista said.

He said part of this initiative is to maintain PAL’s On time Performance which, to date, is better than industry standards. “Improving customer service both on ground and in the air, and offering competitive and affordable rates to loyal customers and new passengers will entice them to fly more and patronize Philippine Airlines,” he added.

Bautista said PAL would also optimize the use of its capital, aircraft and human resources together with an honest-to-goodness cost cutting program aimed at weeding out unnecessary expenses to enhance business efficiency.

“We are cautiously optimistic that our three-pronged strategy of focusing on contribution margin, cost efficiency and risk management will tide us over during these difficult times. Of course, we would continue to look for ways to improve our operations and control costs without compromising passenger safety and comfort, he stressed.

At the start of IATA’s annual meeting Monday, IATA Director General and Chief Executive Giovanni Bisignani said he expects losses from the world's airlines will be worse than forecast this year due to the global recession.