History

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History

GLORIOUS HISTORY (1941 - 2000)

Philippine Airlines was founded on 25 February 1941 by a group of businessmen led by Andres
Soriano, one of the country's leading industrialists. They elected former Senator Ramon
Fernandez as president & Soriano as general manager. With one Beech Model 18, the airline
opened for business on 15 March with a daily flight between Manila & Baguio, 212 kilometers
apart. The first flight had a full load of five passengers. A second Beech Model 18 came in April
and the routes were eventually extended to six points. The government invested in the company
in September.

Upon the outbreak of the Pacific war on 08 December 1941, the two Model 18s and their pilots
were impressed into military service. They were used to evacuate American fighter pilots to
Australia until one was shot down over Mindanao and the other was destroyed on the ground in
an air raid on Surabaya, Indonesia.

After the war, Soriano revived PAL and was elected its president in January 1946. On 14
February, PAL resumed operations with five ex-military twin-engine Douglas DC-3s and a
network of eight points. The payroll had 108 names.

In July of the same year, PAL chartered four-engine Douglas DC-4s to fly American servicemen
home. The first flight left Manila 31July, making PAL the first Asian airline to cross the Pacific.
Regular service between Manila and San Francisco started on 03 December 1946. On 13 May
1947, PAL opened a route to Europe. It acquired its own DC-4s.

PAL bought out one competitor in May 1947 and another in September 1948. In the process, the
government became the majority stockholder. Soriano remained as president under a
management contract between him and PAL.

Four-engine Douglas DC-6's were acquired in 1948 and DC-6Bs were purchased in 1952. These
were operated to 16 cities abroad. Twin-engine Convair 340s were added in April 1953 for the
services to Hong Kong, Bangkok and Taipei. On 30 March 1954, the government ordered the
immediate cancellation of international services as an economy measure. All of the four-engine
airplanes were sold. The Convair 340 service to Hong Kong was retained.

Improvement of some trunkline airports allowed the use of the Convair 340 in the domestic
services starting in 1953. The four-engine Vickers Viscount turboprop came in 1957. The twin-
engine Fokker F-27 began to replace DC-3s at some airports in March in 1960.

Soriano left PAL in March 1961. Eduardo Z. Romualdez, board chairman since 1954, became
the president in a concurrent capacity. Following a change of national administration in January
1962, Col. Renato L. Barretto, former vice president for operations, was elected to the PAL
presidency. He resumed international services with the four-engine Douglas DC-8 jetliner,
initially across the Pacific on 20 June 1962. Barretto left in August 1963. Rafael G. Igoa was
president from October 1963 to March 1964.
Domestic services expanded to a total of 72 points as airports were improved or opened. The
Viscount was introduced on trunkline routes and the Convair 340 began to be phased out. The
DC-3 remained the mainstay of the domestic operations. However, the rural air service was
stopped in May 1964.

In January 1965, the government decided to relinquish control of PAL and bid out half of its
shares. Benigno P. Toda, Jr., board chairman since March 1962, acquired majority control of the
airline. He was elected chairman & president. At the same time, the government permitted two
other local airlines to compete with PAL on domestic routes.

The twin-engine BAC 1-11 Series 400 introduced domestic jet service to Cebu, Bacolod and
Davao on 06 May 1966. The Viscounts were sold. The hawker Siddeley 748 started replacing F-
27s in November 1967 as standard turboprop equipment. The BAC 1-11 Series 500 replaced the
Series 400 airplanes in October 1971.

The government decreed PAL to be the only domestic airline again as of 01 January 1974. Twin-
engine Nihon YS-11 turboprops were added to the domestic fleet. PAL's first McDonnell
Douglas DC-10 widebody tri-jet joined the airline in July of the same year.

In November 1977, the government reassumed control of PAL with the Government Service
Insurance System holding the majority shares. Roman A. Cruz, Jr., president and general
manager of GSIS, was elected to be concurrently the president of PAL. Toda left the airline.

Cruz brought into the fleet the Boeing 727 trijet in July 1979 and the Boeing 747 and Airbus 300
widebody jets in December of the same year. The DC-8s were phased out. Cruz also initiated the
construction of three important PAL facilities - the Technical Center, Inflight Center and Data
Center.

Following the "EDSA Revolution" in February 1986, Dante G. Santos became PAL president.
He launched a massive modernization of the domestic fleet with the acquisition of the Shorts
SD360 in May 1987, the Fokker 50 in August 1988 and the Boeing 737-300 jet in August 1989.
The SD360 turboprops replaced the HS748 in 1988.

Santos left in March 1991 & was succeeded by Feliciano Belmonte, Jr. who had been the
president and general manager of the GSIS since 1986. He turned the airline around after 10
years of losses.

The government had, in the meantime, decided to privatize PAL anew. On 30 January 1992, PR
Holdings, a consortium led by Antonio O. Cojuangco, president of the Philippine Long Distance
Telephone Co., won the bidding for 67 percent of the shares. In the transfer of management to
the consortium on 25 March, Cojuangco was elected chairman and chief executive officer.

Belmonte left PAL on the same date to successfully run for election to the House of
Representatives. The BAC 1-11s were retired in May following completion of the deliveries of
B73s. The Shorts SD360s were also phased out in September.
Resolution of a representation issue with PR Holdings resulted in the election of former
Secretary of Agriculture Carlos G. Dominguez as chairman and president on 01 March 1993.

Within the year, two brand-new Boeing 747-400s joined the PAL fleet & immediately put into
use for non-stop flights across the Pacific.

On 12 February 1994, Jose Antonio Garcia was unanimously elected as PAL's 12th president and
chief operating officer. Dominguez remained chairman and chief executive officer.

A new service between Manila & Osaka, launched in 1994, brought to 34 the number of points
in PAL's international route network. The airline took delivery of its third B747-400 in May
1995.

On 30 January 1995, Lucio C. Tan, the majority stockholder of PR Holdings, was elected
chairman & chief executive officer during a special board meeting, replacing Dominguez who
remained as board member.

Meanwhile, a reorganized management, buoyed by a Tan commitment to infuse PHP5 billion in


fresh capital, immediately embarked on a massive restructuring program aimed at reestablishing
PAL's position in the global arena.

The delivery of the carrier's fourth B747-400 in April 1996 signaled the start of an ambitious
USD4-billion modernization and refleeting program that aimed to make PAL Asia's best airline
within three years.

The centerpiece of the program was the acquisition of 36-state-of-the-art aircraft from
manufacturers Airbus Industries & Boeing Co. from 1996-99. The refleeting sought to give PAL
the distinction of having the youngest fleet in Asia and allow the expansion of its domestic and
international route network.

On 05 June 1997, PAL was re-launched as "Asia's Sunniest" airline to cap its new marketing and
advertising thrust.

The refleeting program was about halfway through when the full impact of the Asian financial
crisis struck the airline industry early in 1998. By 31 March, the end of the fiscal year, PAL had
reported its largest annual loss ever - PHP8.08 billion.

The airline's financial difficulties were compounded by a series of labor disputes that began
when the pilots' union staged a three-week strike in June 1998. This was followed by a strike by
the ground personnel union on 22 July. This ended four days later with the signing of a deal
between the union & management.

But PAL's financial troubles continued to take their toll and on 19 June 1998, the company filed
for receivership with the Securities & Exchange Commission, which then appointed a committee
to oversee the rehabilitation of the flag carrier.
The airline downsized its operations as the Asian financial crisis dragged the region's once-
vibrant economies into recession in 1998. The fleet was reduced from 53 to 22 aircraft, many
domestic and international routes were discontinued, and the work force was reduced.

At the same time, PAL's creditors also demanded a long-term guarantee of industrial peace as a
condition for their continued support of the airline. Management & the ground crew union
conducted marathon negotiations towards this goal but the talks ultimately broke down.

At midnight of 23 September 1998, PAL was forced to cease operations after the union rejected
a management proposal for a 10-year suspension of the collective bargaining agreement in
exchange for representation in the PAL board of directors. PAL's closure ended 52 years of
uninterrupted service to the nation.

But President Joseph Estrada's personal intervention brought PAL back to life. The president
brokered a deal between the two sides that resulted in a landmark agreement signed by PAL
chairman Lucio Tan & union president Alexander Barrientos at Malacañang Palace on 29
September.

The pact was ratified by union members in a referendum on 01 & 02 October and on 07 October,
PAL took to the skies anew with services to 15 domestic points out of Manila. On 29 October,
the flag carrier resumed international services with a flight to Los Angeles and San Francisco.

Asian services resumed on 11 November with flights to Tokyo & Hong Kong. PAL gradually
expanded its network over the next two months, restoring services to Taipei, Singapore, Fukuoka,
Osaka (via Cebu), Dhahran, Riyadh and Seoul.

With the aviation industry still in the doldrums, PAL continued to search for a strategic partner
but in the end, it submitted a "stand alone" rehabilitation plan to the SEC on 07 December 1998.
The plan provides a sound basis for the airline to undertake a recovery on its own while keeping
the door open to the entry of a strategic partner in the future.

Reorganization followed with the onset of the new consultative group. The Interim
Rehabilitation Receiver of PAL announced a new organizational structure on 21 January. Luis
Juan L. Virata became President & Acting Chief Executive Officer; Jaime J. Bautista, Executive
Vice President & Chief Operating Officer; Manolo E. Aquino, Executive Vice president for the
Commercial Group; Andrew L. Huang, Senior Vice President - Finance & Chief Financial
Officer; and Capt. Jose Antonio A. Lozano, Senior Vice President for Operations.
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PAL presented the new proposed rehabilitation plan to its major creditors during a two-week
marathon meeting that started on 15 February in Washington D.C. and ended on 01 March in
Hong Kong.

PAL flew back to Xiamen, after an absence of over nine months, on 15 March 1999 that also
marked the 58th anniversary of the airline. On the same date, PAL submitted its amended
rehabilitation plan to the Securities & Exchange Commission that comprised a revised business
plan and a revised financial restructuring plan. The plan also required the infusion of USD200
million in new equity, with 40% to 60% coming from financial investors and translating to no
less than 90% ownership of PAL.

During an Emergency Board Meeting called on 19 April 1999, Mr. Tan announced his
commitment to provide the USD200 million capital required for the airline's rehabilitation.
Effectively on that date, Mr. Tan had put in escrow USD100 million and the other half to be
ready on or before 04 June. With this capital infusion, Mr. Tan assumed the post as Chief
Executive Officer and held 90% ownership of the national flag carrier. On the same date,
Avelino L. Zapanta was likewise elected president (replacing Luis Juan L. Virata) and chief
operating officer (replacing Jaime J. Bautista).

During an Emergency Board Meeting called on 19 April 1999, Mr. Tan announced his
commitment to provide the USD200 million capital required for the airline's rehabilitation.
Effectively on that date, Mr. Tan had put in escrow USD100 million and the other half to be
ready on or before 04 June. With this capital infusion, Mr. Tan assumed the post as Chief
Executive Officer and held 90% ownership of the national flag carrier. On the same date,
Avelino L. Zapanta was likewise elected president (replacing Luis Juan L. Virata) and chief
operating officer (replacing Jaime J. Bautista).

Reorganization followed in top management positions: Henry So Uy replaced Manolo E. Aquino


as EVP - Commercial Group on 22 April; and Capt. Julio Hernandez took over the position of
OIC - Operations that was formerly held by Capt. Jose Antonio Lozano.

After more than a month of search for new investors, the SEC announced the infusion of
USD200 million in fresh equity - fulfilling a principal condition of the PAL's creditors and
clearing the way for the implementation of the rehab plan. The Lucio Tan Group of Companies
retained a majority stake of 53.69%. Three new investor groups - Top Wealth Enterprises of
Hong Kong, and local firms Maxell Holdings & Richmark Holdings contributed the other half
that gave them 35.15% ownership. The Philippine government's stake was diluted from 14.35%
to 4.26%. PAL employees increased their holdings from 2.55% to 2.71%. Other private groups
retained 4.19% of PAL's stock.

A permanent rehabilitation receiver was appointed by the SEC to replace the IRR on 07 June.
Seven members of the interim panel were retained to monitor & supervise the implementation of
the rehab plan.

After financial restructuring agreements with its major creditors were finalize, PAL signed an
agreement with Lufthansa Consulting GmbH on 19 June 1999 for the latter to advise PAL on its
ongoing restructuring process. The consultancy subsidiary of the Deutsche Lufthansa Group
began a two-month assessment of the PAL's operations on 01 July and will start advising the
airline from 01 September.

Changes in the Board of Directors took place on 26 August 1999 with the election of Rafael B.
Buenaventura, Alexander O. Barrientos, Anthony Dee K. Chiong, Jr. and John Pang as members,
and the elevation of Gabriel C. Singson to the new position of chairman emeritus. Replaced were
Jesli A. Lapuz, Jose C. Magno, Jr. and Henry So Uy.
In October 1999, PAL reported a net income of PHP109.2 million for the months of July and
August sustaining momentum for the company in its rehabilitation since it generated a PHP65.4
million net income during the first quarter of the fiscal year.

During the same month, PAL consolidated its domestic and international operations in one hub
as it moved to the NAIA Centennial Terminal 2.

PAL ended the calendar year with a net income of PHP240 million for the month of December
1999.

In March 2000, PAL celebrated its 59th anniversary reporting a net income of PHP98.3 million
for the month of January 2000, higher than the rehabilitation target. It also marked the airline's
first year of operating under a rehabilitation plan supervised by the Securities and Exchange
Commission (SEC).

PAL announces a remarkable turnaround during the end of fiscal year 1999-2000 with a PHP44
million net profit - its first in seven years. This concluded its first year under rehabilitation
wherein it was able to generate more revenues, hold the line on expenses and post productivity
gains versus targets set by its rehabilitation plan. The profit figure was PAL's first positive
annual financial result since fiscal 1992-1993, when it booked a profit of PHP1.025 billion. That
ushered in a period of six straight years of net losses during which the airline lose a combined
PHP25.614 billion. It was also a dramatic single-year turnaround for PAL, which in fiscal 1998-
88 lost a staggering PHP10.181 billion.

On 01 September 2000, PAL formally handed over its ownership of its maintenance and
engineering division to German-led joint venture Lufthansa Technik Philippines (LTP), the
world's largest provider of aircraft maintenance services. PAL sold its M&E operation in
accordance with the provisions of its rehabilitation plan, which mandates the disposal of the
airline's non-core assets.

MILESTONES IN THE HISTORY OF PAL

March 15, 2013


On PAL’s 72nd anniversary, Airphil Express formally re-brands as PAL Express, adopting the
flag carrier’s “sunriser” livery and logo. The two airlines will align their service standards and
product offerings to provide customers a seamless full-service experience, while remaining
separate companies.

April 26, 2013


PAL announces plans to open 11 new routes in 2013 under an ambitious network expansion
program to complement its fleet modernization thrust. The new points are Basco, Kuala Lumpur,
Darwin, Brisbane, Perth, Guangzhou, Abu Dhabi, Dubai, Riyadh, Dammam and Jeddah.

May 1, 2013
PAL returns to the Philippines’ northernmost province after 15 years with a three-times-weekly
service to Basco, Batanes, operated by PAL Express Bombardier Q400 turbo-prop aircraft.

May 2, 2013
PAL resumes service to Kuala Lumpur after a seven-year absence. Airbus A319 aircraft is
deployed on the route four times weekly.

June 1, 2013
Two routes touching three Australian cities are launched. Manila-Darwin-Brisbane vice-versa
operates three times weekly while Manila-Darwin-Perth vice-versa flies four times weekly. Both
routes utilize Airbus A320 jets. Darwin and Perth are maiden destinations for PAL while
Brisbane was last served in October 2010.

July 9, 2013
PAL iN AiR, the airline’s novel in-flight mobile phone and wi-fi internet service, is launched on
a Boeing 777-300ER flight between Manila and Vancouver. This makes PAL the first
Philippine carrier and one of the first in the world to offer both cutting-edge services. Passengers
can now call, text, tweet, email and surf the internet while in-flight, giving them unprecedented
connectivity to the outside world throughout their air journey.

July 16, 2013


PAL starts a four-times-weekly Airbus A320 service to Guangzhou, its sixth gateway in
China. PAL is returning to the southern industrial city for the first time since April 1985.

August 7, 2013
PAL’s first Airbus A321-200, first of 64 Airbus aircraft ordered 12 months earlier, arrives from
Germany. This kicks off the airline’s comprehensive fleet renewal program, with deliveries
scheduled over the next six years.

September 3, 2013
PAL cancels its four-times-weekly service to Perth via Darwin, just three months after it
commenced on June 2. The twin service to Brisbane via Darwin remains unaffected.

October 1, 2013
PAL returns to the Middle East after two and a half years with a five-times-weekly service to
Abu Dhabi, capital of the United Arab Emirates. A month later, on November 6, 2013, PAL
Express launches its first long-range route, a five-times-weekly service to Dubai, the UAE’s
commercial capital. Both services utilize brand-new Airbus A330-300 High Gross Weight
aircraft.

November 4, 2013
PAL returns to Europe after 15 years with a five-times-weekly, non-stop service to London
Heathrow Airport. The new service comes just four months after the European Union took PAL
off the blacklist that prevented Philippine carriers from operating to the continent. All other
local airlines remain on the list.

November 11, 2013


PAL Express flight 2P 5971, a special humanitarian service carrying doctors, search-and-rescue
teams and several kilograms of medicines and emergency supplies, is the first non-military flight
to arrive in Tacloban, three days after super typhoon Yolanda (international name: Haiyan)
devastated the city and the surrounding region. On the flight out to Cebu, the Bombardier Q400
turbo-prop carried 75 evacuees. Over the next four weeks, the company’s philanthropic arm, the
PAL Foundation, delivers more than 200 tons of relief supplies to Tacloban.

December 1, 2013
PAL returns to Saudi Arabia after an absence of two years and nine months with a four-times-
weekly service to Riyadh starting this day and a three-times-weekly service to Dammam from
December 3. Brand-new Airbus A330-300 High Gross Weight aircraft are deployed on both
routes.

February 27, 2014


PAL suspends its four-times-weekly Kuala Lumpur service after 10 months of operation due to
commercial reasons. Earlier, on January 12, 2014, PAL Express also ended its service to the
Malaysian capital.

March 1-30, 2014


Services between Cebu and 10 points in Visayas and Mindanao are suspended on various dates
throughout this month as PAL rationalizes its operations. Also suspended are the services
between Iloilo and General Santos; Davao and Zamboanga; Zamboanga and Jolo; and
Zamboanga and Tawi-Tawi.

March 30, 2014


PAL starts a double-daily service to Haneda Airport in downtown Tokyo, its fifth gateway in
Japan, after Tokyo Narita, Osaka, Fukuoka and Nagoya.

May 3, 2014
Following the Philippines’ upgrade to Category 1 rating by the U.S. Federal Aviation
Administration on April 10, PAL begins deploying its new Boeing 777-300 ER fleet on trans-
Pacific routes to the U.S. West Coast while its longtime flagship, the Boeing 747-400, is
gradually phased out. The B777-300 ER is first flown to Los Angeles on May 3 and to San
Francisco on May 9, 2014.

May 12, 2014


The Boeing 747, which served as PAL’s flagship for 35 years, was formally retired in a
ceremony at Villamor Air Base in Pasay City. The airline’s four B747-400s would be gradually
withdrawn from service over the next four months. The last PAL commercial flight of the iconic
“jumbo jet” took place in the late evening of August 29, 2014, when PR 105 took off from San
Francisco International Airport, with 285 passengers on board, bound for Manila. It arrived at
3:30 a.m. of September 1, 2014, welcomed with a water-cannon salute at its home port, ending a
memorable era in Philippine aviation.

July 9, 2014
PAL and Etihad Airways, the flag carrier of Abu Dhabi, United Arab Emirates, launch a wide-
ranging strategic partnership that covers code-share flights, loyalty programs, airport lounge
access, joint sales and marketing programs, a Philippine domestic air pass, cargo, and the
coordination of airport operations in Manila and Abu Dhabi.

August 15-17, 2014


PAL mounts two special flights to Malta, chartered by the Philippine government, to ferry home
774 Filipino workers fleeing the civil war in Libya. On August 15, flight PR 9908, utilizing a
Boeing 747-400, departs Manila at 4:00 p.m., followed by PR 9906, using an Airbus A330-300,
at 6:40 p.m. After picking up the OFWs at Malta, the B747-400 arrives back in Manila just
before midnight on August 16 with 419 evacuees on board. The A330-300, carrying 355
workers, arrives at 3:40 a.m. on August 17. PAL would operate a third charter flight on August
20 to pick up more than 400 OFWs at Tunis. That flight returned to Manila at 11:00 p.m. on
August 21.

September 8, 2014
The two biggest shareholders of PAL, the Lucio Tan Group and San Miguel Corp., sign an
agreement where San Miguel consents to sell its 49% stake to the LT Group, subject to the
fulfillment of certain conditions.

September 15, 2014


The Lucio Tan Group officially assumes management control of PAL after executing payment in
accordance with the agreement with San Miguel Corp. Former PAL president Jaime J. Bautista
is appointed general manager to oversee the day-to-day operations of the company. Ramon S.
Ang remains president until the closing date of the agreement, expected in about a month.

October 17, 2014


The Lucio Tan Group, through its wholly owned companies Buona Sorte Holdings Inc. and
Horizon Global Investments Ltd., acquires 9% and 40%, respectively, of the 49% stake of San
Miguel Equity Investments Inc. in Trustmark Holdings Corp. Trustmark Holdings owns 89.78%
of the issued and outstanding shares of PAL Holdings Inc., which in turn owns 98.27% of
Philippine Airlines Inc.

October 23, 2014


The PAL board of directors elects general manager Jaime J. Bautista as the airline’s president
and chief operating officer, in place of Ramon S. Ang, who resigns. The board is also
reconstituted with the election of Joseph T. Chua as vice chairman, Florentino M. Herrera III as
corporate secretary, and Carmen K. Tan, Heinrich T. Khoo, Manuel M. Lazaro and Johnip G.
Cua as members. They join incumbent board members Lucio K. Tan, Jr., Michael G. Tan,
Washington SyCip, Alberto D. Lina, Estelito Mendoza, Antonino Alindogan, Jr. and Gregorio T.
Yu. Dr. Lucio C. Tan remains PAL chairman and chief executive officer.

October 26, 2014


PAL and All Nippon Airways, the largest carrier in Japan, forge a commercial partnership
covering code-share flights between the Philippines and Japan, loyalty programs, airport lounges,
joint sales and marketing program, and the coordination of airport operations. PAL code-shares
on ANA’s two daily flights between Manila and Tokyo Haneda, as well as on select domestic
routes in Japan. On the other hand, ANA code-shares on PAL’s various services linking Manila
and Cebu with five points in Japan, as well as on 10 Philippine domestic routes.

December 19-20, 2014


PAL expands its footprint in Japan with the opening of new routes between Cebu and two central
Japanese cities. The flag carrier launches a four-times-weekly Airbus A321 service to Osaka on
December 19 and a three-times-weekly A321 service to Nagoya on December 20.

January 17-19, 2015


PAL reprises its role as “Shepherd One” – the official carrier of the pope, leader of the universal
Roman Catholic Church – during the apostolic visit of Pope Francis to the Philippines. On
January 17, a PAL A320 jet flies Pope Francis to and from Tacloban in inclement weather where
he commiserated with the survivors of November 2013’s super typhoon Yolanda. On January 19,
a PAL Airbus A340-300 flies the pontiff back to Rome at the conclusion of his five-day visit.
PAL president Jaime J. Bautista accompanies the pope on the 15-hour non-stop flight.

February 10, 2015


PAL starts code-sharing on select Canadian domestic flights of WestJet, that country’s second-
largest airline. These flights originate from PAL’s two gateways in Canada, Vancouver on the
west coast and Toronto in the east. They include WestJet services between Vancouver and
Calgary, Edmonton, Winnipeg, and Toronto. From Toronto, PAL code-shares on certain
WestJet flights to Montreal and Ottawa.

March 15, 2015


On its 74th anniversary, PAL returns to New York after 18 years with a four-times-weekly
service from Manila to John F. Kennedy International Airport via Vancouver. Airbus A340-300
aircraft are deployed on the route, the longest in PAL’s network at 14,501 kilometers. Chairman
Lucio C. Tan and President Jaime J. Bautista are both on the inaugural flight, which is warmly
welcomed by the Filipino community on the U.S. East Coast. New York is PAL’s fifth
destination in the U.S.

March 20, 2015


PAL starts thrice-weekly flights between Manila and Tablas, Romblon province using
Bombardier Q300 turbo-prop aircraft. The airline first flew the route in 1956 but suspended it in
the late 1990s upon the retirement of its Fokker 50 fleet.

March 29, 2015


PAL revives its Cebu domestic hub with flights to six cities in Visayas and Mindanao: Bacolod,
Butuan, Cagayan de Oro, Davao, Iloilo and Tacloban. Services between General Santos and
Iloilo, and between Zamboanga and Davao are also resumed. All flights utilize Airbus A320
aircraft.

April 15, 2015


PAL reports total comprehensive income of $20.4 million for 2014, the company’s first profit in
four years. It is a huge turnaround from the $229.7 million loss incurred in April-to-December
2013. (In that year, PAL shifted its accounting period from a fiscal year to a calendar year
standard, resulting in a shorter reporting period of nine months.) The profit is anchored on
strong performances by passenger and cargo operations, and helped by the easing of fuel prices.

April 25, 2015


PAL launches a three-times-weekly service to Quanzhou in Fujian province, China, the ancestral
homeland of most Filipino-Chinese families. Airbus A320 aircraft are deployed on the route.

May 4, 2015
PAL continues its financial turnaround with a total comprehensive income of $85 million for the
first quarter (January to March) of 2015. It reverses a $20.7 million loss incurred in the same
period of 2014. The profit is attributed to the increase in passenger traffic following the opening
of several domestic and international destinations, as well as aggressive sales campaigns that
resulted in improved yields.

WINGS IN PAL'S HISTORY

Since its first flight on 15 March 1941, Philippine Airlines has flown almost 30 types of aircraft
to fulfill various roles in its mission of providing the Philippines with an efficient and reliable air
transportation as both a domestic operator and the flag carrier.

Some of the aircraft figured in milestones in the history of Philippine civil aviation as well as
PAL's. Beech Model 18's with which PAL began flying in 1941, went to war and were destroyed
in combat. The Douglas DC-3 brought PAL back into service on 14 February 1946. The Douglas
DC-4 took the colors across the Pacific on 31 July 1946 and made PAL the first Asian airline to
open a route to the United States. The Vickers Viscount 784 pulled PAL into the jet age in June
1957. The Douglas DC-8 returned to PAL to international routes in June 1962. The BAC-Series
400 One-Eleven introduced jet service to domestic customers in May 1966. The McDonnell
Douglas DC-10 offered widebody service starting in July 1974. The Fokker 50 and Shorts
SD360s were the first new airplanes in domestic services after 16 years. The Boeing 737-300
joined the fleet in 1989 for the domestic operations.

The Boeing 747-400 joined PAL's fleet in March 1993 for the airline's non-stop flights across the
Pacific. The 400,000-pound aircraft - the world's largest and most popular long-range aircraft - is
the mainstay of PAL's Trans-Pacific services. The modernization reached its peak in the year
1997 with the introduction of the three new Airbus aircraft - the A340 series 300, and series 200,
A330-300 and A320-200. These new aircraft will be used for the all-jet operation of the
international, regional and domestic routes serviced by Philippine Airlines.

In October 2006, PAL embarked on another fleet-wide modernization program. This was
anchored on the retirement of the Boeing 737-300 and the acquisition of 20 new-generation
Airbus A320-family jets for its single-aisle fleet. The new aircraft consisted of 16 A320s and
four A319s that became the new workhorses of the domestic and short-range regional services.
They featured state-of-the-art avionics, a fully digital inflight entertainment system and
ergonomic Recaro seats in a two-class layout.
The wide-body fleet also underwent a massive upgrading, with an order for up to six Boeing
777-300ER ultra-long-range aircraft signed in December 2006. The first of these cutting-edge
jets was delivered on November 19, 2009. The last two units are scheduled for delivery in late
2013.

CHAIRMAN & CEO

Dr. Lucio C. Tan was born on 17 July 1934 in Fujian, China, to Chua King Ha and the late Tan Yan Kee,
both of whom served as constant sources of inspiration and guidance throughout his life. Tan received
his Bachelor of Science degree in Chemical Engineering from Far Eastern University, and is the recipient
of numerous awards and honors for his many personal, professional, and philanthropic achievements.

Our Facilities

Centennial Terminal 2, Ninoy Aquino International Airport (NAIA)


Located in Pasay City. An exclusive terminal for PAL’s domestic and international flights,
providing passengers seamless transfers

Mabuhay Miles Center


Located at Bel-air, Makati City. Caters the needs of members of the PAL's frequent flyer
program, Mabuhay Miles

Maintenance Base Complex


Located at Andrews Avenue, Pasay City. Original center of PAL operations, now site of
Logistics, Flight Operations, Cabin Services, Medical, Operations Control Center

PAL Learning Center


Located at Padre Faura corner Adriatico Streets, Malate, Manila. An integrated training center
for cabin crew, catering, flight deck crew, technical and ground personnel.

PAL Aviation School


Located at (PAL Learning Center and at Clark Field in Pampanga). A complex with complete
training facilities including simulator for A320-200 aircraft.

PAL Inflight Center


Inflight Center along MIA Road, Pasay City. Site of well-equipped, fully functional inflight
kitchen capable of producing more than 10,000 meals a day, now operated by SkyKitchen
Philippines

Metro Manila – based PAL Ticket Offices


PNB Financial Center, D.Macapagal Ave., Pasay; NAIA Terminal 2, Pasay; Century Park Hotel,
Vito Cruz, Manila; Ali Mall Cubao, Quezon City; Data Center Building, Domestic Road, Pasay;
C5 Diego Silang, Taguig; Filinvest, Alabang, Muntinlupa; Bel-air Makati, Gil Puyat Ave.
Makati City
Our Operating Fleet

Boeing 777-300ER

The B777-300ER is the world's largest long-range twin-engine jetliner, powered by the largest
and most powerful commercial jet engine. The 777-300ER provides exceptional fuel economy,
efficiency, reliability and high levels of cabin comfort for passengers, combined with unmatched
levels of payload and range.

Power 2 GE90-115BL
Speed 482 knots / 555 mph
Capacity 370 Passengers (2-class layout) and 28 tons Cargo
Number 6

Boeing 747-400

The B747-400 has been the best-selling model of the 747 family, which used to be the biggest
commercial aircraft for more than three decades. Its popularity is based on its low seat-mile cost,
flexibility, long-range dominance, unmatched comfort options and ability to integrate new
technology.

Power 4 CF6-80C2B1F
Speed 488 knots / 562 mph
Capacity 427 Passengers (2-class layout) and 24 tons Cargo
Number 2

Airbus A340-300
The A340 is the long-range version of A330, The main difference being that it is equipped with
four engines, which allow unrestricted operations on long-haul routes.

Power 4 CFM 56-5C4


Speed 480 knots / 553 mph
Capacity 264 Passengers (2-class layout) and 23 tons Cargo
Number 8

Airbus A330-300

The A330 is part of the A330/A340 family of fly-by-wire widebody aircraft. It is optimized for
regional routes and most cost effective twin-aisle airliner ever built.

Power 2 CF6-80E1A2 / Trent 772B-60


Speed 480 knots / 553 mph
Capacity 302/368/414 Passengers and 28 tons Cargo
Number 12

Airbus A321-231

The Airbus A321-231 is the most efficient single-aisle jetliner ever built. Its stretched fuselage –
measuring 146 feet or 23 feet longer than the A320 – makes the A321 the longest and widest (12
feet, 1 inch) among all single-aisle aircraft. It can accommodate more seats and cargo, providing
enhanced passenger comfort. PAL ordered a total of 45 A321s, gradually replacing the A320s to
comprise the short-range fleet.

Power 2 IAE V2533-A5


Speed 458 knots / 528 mph
Capacity 199 passengers (2-class layout) and 12 tons Cargo
Number 8

Airbus A320-200

The A320 is the founding member of the A320 family, the world's first fly-by-wire jetliner
family. The wide, comfortable cabin makes the aircraft popular with passengers and crew alike.

Power 2 CFM56-5B
Speed 458 knots / 528 mph
Capacity 156 / 180 Passengers (2-class layout) and 7 tons Cargo
Number 23

Airbus A319-100

Power 2 CFM56-5B6/P
Speed 503 knots / 579 mph
Capacity 134 (2-class layout) and 6.7 tons Cargo
Number 1

Q300 / DHC8-300

Capacity 56 Passengers
Number 4
Q400 / DHC8-400

Capacity 76 Passengers
Number 5

POLICIES

PAL Security Policy

Philippine Airlines considers Security Management as an integral part of the company’s overall
business operations and the development of a positive Security Culture is one of its core values.

We shall adopt, implement and continuously improve the Security Management System (SeMS)
at all levels of management, wherein all employees and service providers share the responsibility
and shall be accountable for the delivery of a high level of performance, meeting company
security standards and compliance to National and International regulations.

The effective and efficient performance of the PAL Security Management System rests with me
as the Security Accountable Manager. We are committed to:

 Establish security goals and objectives, and security performance standards;


 Provide all appropriate resources needed, through proper selection and screening, to
support the successful implementation of a company wide Security Management System
that promotes the development of a positive security culture and awareness essential in
establishing and maintaining a safe and secure environment;
 Define and clarify the various Aviation Security roles, Operational security
responsibilities and accountability of managers, employees, service providers and the
mutual recognition and harmonization of security regulatory requirements and procedures
in all operational manuals and contracts of PAL;
 Provide the required training, information and supervision to ensure all personnel are
aware of their individual responsibilities based on the company policies, procedures and
standards, the applicable laws and regulations, which they must comply in all locations
where operations are conducted.
 Support the creation of Security Review Committee in all levels of management
including service providers to address security concerns and issues;
 Implement Risk Management and Investigation processes including the promotion of a
Security Reporting System to encourage all personnel to freely admit omissions or
substandard performance, without fear of disciplinary action, except if such disclosure
indicates an illegal act, recidivist in nature or deliberate and willful disregard of security
regulatory requirements, standards and procedures;
 Support Security Audits and facilitate Quality Control thru the conduct of Security
Evaluation, surveys/inspections, test and exercises to assess the effectiveness and proper
implementation of security controls and compliance to the security program by all
personnel performing operational security functions.
PAL Quality Policy

Philippine Airlines is committed to maintain a systematic and comprehensive approach to


build quality into all its functional areas. We shall observe continuing improvement concepts
and quality management principles in our business processes and implement quality monitoring
programs to ensure safe and timely delivery of our services and compliance with Aviation
Authority requirements.

To support the above policy;

1. PAL personnel are committed to consistently provide superior products and services and strive
for continuous improvement.

2. Senior Management is committed to enhance organizational efficiency and effectiveness by


providing the required human resources, equipment, workspace and environment to meet quality
program requirements.

3. The Company is committed to empower and engage all PAL personnel by providing the
necessary education, training and learning experience for a satisfying career.

4. Personnel of contracted service providers will adhere to the Quality Standards of PAL, as
stated in the various PAL maintenance and operations manuals, and support PAL in its
continued search for quality improvements.

5. PAL Quality Assurance shall continuously monitor and assess the quality of maintenance and
operations activities to improve operational performance.

6. Quality performance metrics are defined and monitored by the responsible managers of
maintenance and operations.

7. Company personnel shall treat the identification of system non-conformance reports as


opportunities for improvement; supported by effective root cause analysis and timely and
effective corrective action.

It should be understood that the Quality Policy is directed towards supporting an airworthy, safe
and efficient airline operations geared towards exceeding customer expectations. Within this
framework, airworthiness and safety remain our first priority above all other considerations.

Employee Benefits

PAL Oracle User Productivity Kit for Human Capital Department

PAL User Productivity Kit is your interactive guide to several systems being
used by Philippine Airlines. It is a training tool that records and plays back
every step an end user takes when doing their normal business activities. It
includes online job manual and enables self paced training of job procedures,
policies and business process flows. This tool gives you four modes to
choose from,we have 1.) See It! 2.) Try It! 3.) Know It! 4.) Do It!

Update PersonalInformation

Self Service Leaves

Electronic Certification of Employment (e-COE)

Electronic Clearance (e-Clearance)

Self Service Approvals

Regular Travel Benefits

Policy on Regular Travel Benefits

Enhanced Travel Benefits - Addendum as of 07 March 2017

Travel Perks

PR and 2P Philippine-Based Employees

PR Foreign-Based Employees

Government Mandated Benefits

Social Security System (SSS)

+ Salary Loan

+ Sickness Benefit

+ Maternity Benefit

+ Disability Benefit

Philippine Health Insurance Corporation (PhilHealth)


For purposes of securing PhilHealth documents for benefit availment at
the event of hospitalization, kindly contact our Medical at +6328558000
local 2240.

Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at


Gobyerno (Pag-IBIG)

+ Multipurpose Loan

Requirements for the Pag-IBIG Multipurpose Loan are:

1. Accomplished Multipurpose Loan Form (Downloaded in Infoserve)

2. Accomplished Citi Card Form (Downloaded in Infoserve)

3. Two (2) photocopies of two (two) valid IDs

4. Statement of Earnings/Payslips - most recent/whole month

+ Provident Benefit

+ Housing Loan

Requirements for Change of Marital Status and Update of


Dependents

Requirements for Newly Hired Employees - Government Issued


Numbers

All Government Forms

InfoBites

SSS
Leaves

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