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RSS feed Mobile Archive Search Ask me anything Submit EssayThe Filipino air passages ( chum up) is the national airway of the Philippine and Asias first airline. Philippine Airlines has been the dominant air carrier in the Philippines since its creation in 1941. Philippine Airlines rebranded itself as Asias sunniest airline to cap its new marketing and advertizing trust.We have identified the three (3) major(ip) competitors of Philippine Airlines which are Cebu Pacific, Cathay Pacific and Zest Airlines.Our recommended schema for Philippine Airlines is Product development strategy this includes providing more services to attract the customer as considerably as improving the products and services that they offer to gain more profit and to satisfy the customers. Many airline companies offer pooh-pooh fares to gather customers. We suggest that PAL focus on differentiation by making their customers experience the class of fly balling to remind them the pleasure of taking pas sage in the skies. This strategy testament require large employee training in proper etiquette and quality service, to ensure the portrayed brand visualize lines up with the experience of customers. Second to our priority is increasing the number of salespersons, increasing advertising expenditures, offering extensive sales promotion items, or increasing publicity efforts to enhance market share especi onlyy for the local anesthetic flights.The Philippine Airlines must know the strengths and weakness of the management for the strategists to know what things to improve and maintain. Based on the provide of the competitive profile matrix, Philippine Airlines fall behind the Cebu Pacific and this is due to the fall of its local flight segment. Garnering a decrease of total market share from 50% in May 2009 to 35.4% in upstart December of 2009According to the SPACE Matrix that Philippine Airlines is financially a strong company that has achieved major competitive advantages in a g rowing and stable manufacture. Market Development, Product Development, and Horizontal integration is the fit strategy that croupe be used by PAL.In the Boston Consulting Group Matrix, the Philippine Airline is in the position of star because Philippine Airline remains stable with the market growth and continues to be successful in the field of airline industry. PAL is in the quadrant II that represents the organizations best long-run opportunities for growth and profitability. Horizontal Integration is appropriate strategies for these divisions to consider. PAL should cast upd control everywhere their competitor and take everywheres among competitors allow for increased economies of sale and enhanced transfer of resources and competencies.Base on the internal- external matrix of Philippine Airline that the company should hold and maintain. The company should pursue Intensive (market penetration and product development) strategies which jackpot be the best and some appropriat e things to do.With the standard of living of Filipino is improving piecemeal as well as the increase in tourism industry and lot of Filipino workers go foreign airline industry is stably increase, that is why given the rapid market growth of the airline industry. Philippine Airlines is in an excellent strategic position, for Philippine Airlines, concentration on product development is an appropriate strategy in terms of the specific circumstances that face the company.II. COMPANY PROFILEThe airline was founded on February 26, 1941 by a group of businessmen led by Andres Soriano, hailed as one of the Philippines leading industrialists at the time, who served as its general manager, and former Senator Ramon Fernandez, who served as its chairman and president. The airline, headquartered in the Philippine National Bank Financial mall in Pasay City, was founded in 1941 and is the oldest commercialized airline in Asia operating under its original name. Out of its hubs at Ninoy Aquin o International Airport of manila and Mactan-Cebu International Airport of Cebu City, Philippine Airlines serves nineteen destinations in the Philippines and twenty-four destinations in southeasterly Asia, East Asia, Australia, Canada and the United States.Formerly one of the largest Asiatic airlines, PAL was severely affected by the 1997 Asian Financial Crisis. In what was believed to be one of the Philippines biggest corporate failures, PAL was forced to downsize its international trading operations by completely cutting operations to Europe and eventually Southwest Asia, cutting virtually all domestic services excluding routes operated from Manila, reducing the size of its fleet and terminating the jobs of thousands of employees. The airline was placed under receivership in 1998, gradually restoring operations to many of the destinations it formerly serviced. PAL exited receivership in 2007 with ambitious plans to further restore services to its previously-serviced destinatio ns, as well as diversify its fleet.Philippine Airlines is the only airline in the Philippines to be accredited with the IOSA (IATA in operation(p) Safety Audit) by the International Air Transport Association and has been awarded a 3-star rating by Skytrax.1. frugal ForcesIn 1997, Philippine Airlines rebranded itself as Asias sunniest airline to cap its new marketing and advertising thrust. In addition to its re-fleeting program, Philippine Airlines commenced service to New York City (using Newark Liberty International Airport) via Vancouver. However, this caused the airline to be financially unstable, having acquired too many aircraft while matching them to unprofitable routes. The re-fleeting program was about halfway through when the lavish impact of the Asian financial crisis struck the airline industry early in 1998. By a only if 31, 1997, at the end of the 1996-1997 monetary years, Philippine Airlines had reported its largest annual loss of P8.08 billion.PAL shareholders a pproved a quasi-reorganization plan, reducing the par valueof PAL shares to P0.20 from P0.80 per share. It will in addition increase its authorized capital standard from P16 billion to P20 billion divided into 100 billion shares at P0.20 per share.Philippine Airlines income annual report showed an increase in revenues to US$1.634 billion, from US$1.504 billion the previous year, after carrying 17% more passengers due to erudition of additional aircraft and growth in the domestic market.However, the cost of operating more flights, which involved higher living expense and compounded by record-high fuel prices, raised expenses to US$1.9 billion, from US$1.539 billion the previous year. give notice comprised 44% of Philippine Airlines income operating expenses.When the global crisis led to a travel slump in the latter(prenominal) intermit of the year, PALs passenger load factor fell to an average of 76.2%, three points lower than the previous year.PAL also reported paid US$165. 4 million in principal and affaire to its creditors, bringing to US$2.4 billion the total paid from March 1999 to March 2009. Total assets decreased by US$60.6 million to US$1.971 billion, while total liabilities rose by US$239.5 million over the previous year.With the protracted recession, the International Air Transport Association (IATA) said its member-airlines are bracing for US$9 billion in total combined losses by the end of the current fiscal year.2.1 Social forcesThe Philippine airlines conduct a promo for there passenger especially who belong to there membership. They tramp earn land miles points in every board with the code share spouses (air Macau, Cathy pacific ,emirates, etihad , Malaysia airlines and other airlines that belong to that agreement. they also earn miles point in staying hotels around the Philippines and worldwide. example they can earn point rates modify amidst 250 and 500 miles per stay in hotel. The points they earn can be donated to UNICEF or in PAL Foundation. Security control is a significant contri exceptor to service quality, but service is underperformed in terms of efficiency, relative to passengers desired levels. Security needs to follow a similar pattern to safety. It is already part of IOSA, but Im sure more can be done to formalize industry requirements. IATA and the various agencies around the world must find ways to harmonize security requirements.It is essential for the passenger experience, and it is essential for airlines. It would simplify operations considerably.At the same time, it is clear that security is a government responsibility. They should be paying for the majority of measures, especially at the airport. But airlines must show willingness too, and play their part. We can look again at security onboard the aircraft. Boarding -Airlines use a number of different group/zone embarkment systems or boarding rules, the idea (there are numerous variations) it is significant to service quality. In-flight service is something that makes the passenger commodious and relaxes while they are on board.2.2 Cultural forcesPhilippine Airlines (PAL) is the national flag carrier of the Philippines and the first and oldest commercial airline in Asia. It began operations in 1941 by making one flight daily between Manila and Baguio. From its main hub at Ninoy Aquino International Airport in Manila, Philippine Airlines now flies to 18 destinations in the Philippines and serves 26 destinations in Southeast Asia, East Asia, Australia, Canada and the United States. Mabuhay Miles is the Philippine Airlines frequent flyer program.It was establish in 2002 by merging all existing PAL frequent flyer programs prior to the Asian financial crisis namely, PALsmiles, the Mabuhay Club and the Flying Sportsman, with PALsmiles and Mabuhay Club members being moved to the new program on venerable 1, 2002. The Flying Sportsman program was subsequently transformed into SportsPlus, a three-tiered, subscription-base d program which gives extra baggage allocations for sports equipment on PAL flights, aimed specifically at golfers, bowlers, scuba divers, tennis and badminton players, anglers and cyclists.The SportsPlus program is available only to Mabuhay Miles base members, as Mabuhay Miles members on higher membership tiers automatically receive SportsPlus privileges. Mabuhay Miles members earn miles that can be redeemed at face value on most Philippine Airlines-operated flights, as well as on code-shared routes of partner airlines. Some promotional fares and all flights operated by Airphil Express, however, are ineligible to earn miles. Miles may also be earned by patronizing the services of Mabuhay Miles partners, or by purchasing miles. Membership tiers include Mabuhay Miles Base, Elite, agiotage Elite and Million Miler.2.3 Environmental ForcesIn recent years, much attention has been given to the role of railcar emissions in climate change. But air travelwhich has been rebounding since 9/1 1is equally damaging to the climate, per mile of travel. Flight is one of the most fuel-guzzling forms of passenger transportation. Airplanes fuel use (and resulting emissions of carbon dioxide), per passenger and per mile, is almost as heavy as driving alone. Beyond their emissions of carbon dioxide, aircraft release other gases that have disproportionate but short-term effects on our planets climate. And data suggest that north westerners fly more passenger miles per capita than residents of most other states. Carbon dioxide has the same effects on the climate no matter when or where it is injected into the atmosphere. But other aircraft emissions-such as nitrogen oxides-have potent, climate-changing effects because of the elevation at which they are released. Over the short term, they more than double the effects of the CO2 alone Over time, these other pollutants disappear, but the carbon dioxide remains aloft capturing heat for decades.These short-term climate-altering effects o f air travel are concentrated, along with the residents of affluent nations, in the mid-latitudes of the northern hemisphere, which includes the Pacific Northwest.The airline industries are responsible for about 11% of glasshouse gases emitted by the transportation sector. An aircraft engine contributes a global warming and global dimming even though it is to the lowest degree polluting forms of travel in the world. The rapid growth of air travel in recent years can contributes to increase the total pollution attributed to aviation and the reduction of achieved automobiles. The jet fuel can burned per passenger on a average 3200 kilometers airline flight about 353 kilograms.2.4 Demographic ForcesThe population of the Philippines was 88.57 million hatful as of August, 2007. The 2009 projected population is 92.23 million people. This is an inflation rate of +1.5%. The 2008 population was 90.348.437, making it the 12th most populated country in the world. The Republic of the Philipp ines is an archipelagic nation located off the coast of Southeast Asia.Filipinos are descended from Austronesia people from Taiwan over a thousand years ago. The Aboriginal inhabitants consist of the Ati and Aetas, referred to as Negritos. Most of the country is comprised of Malayo-Polynesian heathenish groups including, the Tagalog, Visayans, Ilocano, Kapampangan, Bicolano, Moro, Pangasinense, Igorot, Lumad Ibanag, Mangyan, Badjao, Ivatan, and Palawan tribes.There is a significant group of other ethnic descendants including the Spanish, British, American, Japanese and Chinese due to the Spanish colonization and Americation occupation after World warfare II. These intermarried descendants are referred to as Filipino mestizos There are Twelve major regional languages for each one with over one million speakers Tagalog, Cebuano, Ilocano, Waray-Waray, Tausug, Bikol, Kapampangan, Pangasinan, Kinaray-a, Maranao, Maguindanao and Hiligaynon. English and Spanish were both imposed on the c ountry as official languages at one time in its history, so the languages can still be to a great extent felt within the country.The airlines first flight took place on March 15, 1941 with a single Beech craft Model 18 NPC-54 on daily services between Manila (from Nielson Field) and Baguio. On July 22, the airline acquired the franchise of the Philippine Aerial Taxi Company. Government investment in folk paved the way for its nationalization. PAL owns 30 Airbus aircraft and four Bombardier airplanes. The airline has also reconfigured its in-flight service to include first, business, and economy classes. PAL additionally offers flights to India and China, both among the worlds fastest-growing travel markets. The carrier offers almost 30 each week flights to US destinations. In 2008 the company launched its low fare carrier unit, PAL Express, which serves mostly domestic island destinations.