Philippine Airlines

Daleon, Andrea

de la Rosa, Juan Carlos

Dela Cruz, Mark Renz

Koh, Jose Maria Antonio

Magno, Enrico Miguel

Principles of Marketing GA - A2
I. SWOT-R Analysis of PAL

Strengths Weaknesses

- Flagship airline of the country. Since - Number of incidents related to

it is the nationally acknowledged airline, airline services has long haunted the
there are privileges such as the number airline.
of direct flights to certain countries and
continents, such as North America, - Delayed flights due to seen and
Europe, and Eurasia etc. unforeseen circumstances.

- Has a point system wherein - The number of available aircraft

frequent flyers can avail rewards may not be able to support local and
according to their Mabuhay Miles points. foreign travellers.

- PAL has a diverse fleet of Aircrafts - Delayed information dissemination

that are used on different types of with regards to cancelled flights.
flights.
- They have their own union, which
- First airline in Asia dating back to renders them from the benefits of
1941. Holidays and Bonuses mandated by the
government.
- PAL has very good medical benefits
for its employees. - Compared to other international
airlines, PAL employees have the lowest
salary.

Opportunities Threats

- Free travel for employees and their - Regional competition could produce
families up to the first degree. a decline in Asian Passengers.

- The medical benefits of employees - Passenger comfort and

can cover relatives within the first convenience offered by other airlines
degree. may sway current and possible PAL
passengers in availing PAL’s service.
- Provides opportunities to locals
(Filipinos) in terms of representing the - Disruptive foreign relations by the
nation’s hospitality service to tourists. Philippine Government affects the travel
destination of this airline being the
- Using their mabuhay miles program, national carrier.
they can offer partnership with other
airline companies to increase - Globalization may threaten PAL’s
advertisement and flyers for both local program by taking evasive measures
and foreign tourists. against it.

- Occurrence of seat sales from other

airlines also threaten flyers of PAL.

- Emergence of other Local and

Foreign Airline Companies may prove a
 threat to PAL’s target market.

Recommendations

We want to recommend the following actions to address the points for improvement of

this organization (Philippine Airlines):

First, Philippine Airlines should upgrade its fleet of airplanes and lodgings for

passengers who are waiting for their flights. This will result in better comfort wherein the

company will be more resilient in solving delays and having better services than their

competitors. The other is to advertise achievements to persuade new patrons in availing

PAL's services. Doing this would influence people into applying to the Mabuhay Miles

program. An example of this is Star Alliance, where multiple airlines collaborated to show

that these airlines are similar to each other. And lastly, aside from the regularly scheduled

promo flights, have an unscheduled seat sale for future trips. Another Filipino airline called

Cebu Pacific has been using this for the past couple of years. Unscheduled seat sales

allow passengers to be able to book flights ahead of schedule.

II. Needs, Wants, and Expectations

Needs

Professionals and Aircrafts

PAL must ensure first the safety of its passenger/customer, therefore they are required

to hire the most reliable professional pilots, stewardess, mechanics and etc. In addition, PAL

is required to have the best performing aircraft to provide its customer and passenger a

comfortable and safe flight. Also, having this aircraft can avoid accidents and troubles that

may affect their overall performance as an Airline Company.

Accommodations and Safety Procedures

 PAL is expected to have the best security and safety precautions as they handle and

manage the lives of their passengers and customers. They must have well-oriented

stewardess who knew how to perform first-aid and demonstrate safety precautions along the

flight as well as pleasing the customers with their good attitude. Also, flights are usually long

so they need to provide restrooms and lavatories in order to let passengers freshen up and

excrete their waste while on board.

Wants

Attractiveness of the Airline’s Service and Effectiveness of Airline’s Promotional

Expenditures

The base for the attractiveness of the airline’s service is the price of the tickets. The

prices of the tickets vary depending on the competitors’ scope of service. However, the service

of Philippine Airlines wants to ensure the customer’s satisfaction when it comes in to

comfortability.

Live Updates

Philippine Airlines wanted to ensure that the passenger is always updated when it

comes to their flight, especially when there is a delay, cancellations, or suspensions of flight.

Private Flights and Entertainment

Passengers and some customers of PAL are willing to pay large amount of money to

ensure their safety as well as having fun inside the plane. Also, it is PAL’s duty is to provide

the most comfortable and best experience of the passengers/customers who availed the

private flight as they pay a large amount of money.

Expectations

Price

The customer expects that the prices may vary depending on the season or the aircraft

they want to fly with. Also, prices vary depending on the route or place they want to land.

Airplanes
 PAL is required to clean and have a comfortable aircraft, because passengers and

customers expects comfortable flight. This feature will help them attract more customers and

it will make their customers expect more from the company.

Fast and Reliable

Airline Companies must be updated and they should be clear and precise on the things

that they need to show to their passengers and customers. Also, PAL must give out detailed

and clear information to their customers and passengers.

III. Features, Advantages, and Benefits

Features

Philippine Airlines (PAL) is the flag carrier of the Philippines. It was established in 1941

by a group of businessmen led by Andres Soriano, the leading journalist in the country. In the

same year, it first flew to Baguio from Makati’s Nielsen airfield. After six months, flights to Cebu

started to be in service. In 1946, PAL used a chartered Douglas DC-4 to fly across the pacific

with 41-hour crossings and fuel stops in Guam, Wake, Kwajalein, and Honolulu.

Currently, PAL can be found in four local hubs scattered in all three major islands–

Luzon, Visayas, and Mindanao. Two hubs are located in Luzon namely the Ninoy Aquino

International Airport in Manila and Clark International Airport of Angeles in Pampanga; one is

located in Mactan-Cebu International Airport of Cebu found in Visayas, and the last is in

Francisco Bangoy International Airport of Davao in Mindanao. PAL now flies to 31 local

destinations such as the newly restored Boracay and even the north most Basco, Batanes. It

also has been flying overseas to 54 countries in Southeast Asia, East Asia, Middle East,

Oceania, North America, and Europe. Additionally, PAL has a number of 72 aircrafts in its fleet

with narrow-body aircrafts like the Airbus A320 and wide-body aircraft such as the Airbus A350

and Boeing 777.

 PAL allows its customers to choose their comfort based on their budget. It offers the

economy class for those who are under a budget and the business class for those who opt to

bring comfort to a higher level.

Advantages

Entertainment and Productibility

Philippine Airlines brings entertainment to each customer through various services.

One is the myPAL eSuite which are TV screens installed behind the chairs for each passenger

to use. Although only put in select aircraft for long-haul flights, the myPAL eSuite keeps the

passengers company with their long list of movies, TV series, and songs that they can choose

from. PAL also has its own all-in-one travel entertainment application–myPAL Player–that lets

the passengers stream movies, videos, and music from their own gadgets by downloading it

from the Apple Store or Google Play Store. If they prefer to watch and listen in their preferred

style for better comfort, they may do so by using PAL’s application. Also, PAL offers free wi-fi

on air through their myPAL Wi-Fi Hi-Speed. This caters to those passengers who need access

to the wi-fi for business and even personal use. Lastly, PAL’s aircrafts also allow their

passengers to be connected to their loved ones through inflight roaming. This allows them to

continue being in touch with their friends and families in between takeoff and landing.

Special Service and Assistance

Besides the comfort of the passengers in their seats, PAL also wants them to have an

enjoyable inflight dining experience. Local flights have sumptuous traditional and fusion dishes

and international flights have Filipino, Western, and Japanese dishes are catered for their

passengers. On top of that, PAL offers special meals that caters to a passenger’s dietary

needs, religious needs or medical needs.

Senior Citizens and PWDs are also given assistance from booking, to the airport, and

up until the arrival at the destination. Complimentary wheelchair service is also offered for PAL

passengers who are in need of one when roaming the airport.

Benefits

- PAL’s reclinable seats for both local and international flights give the passengers the

option to adjust them according to their comfort for the entire flight.

- PAL’s entertainment service keeps the passengers accompanied and entertained

throughout the flight, giving them no time to get bored.

- People who prefer special meals due to certain restrictions can have filling, hearty, and

intake-safe meals for them to consume.

IV. Market Research: Problem Statement

Philippine Airlines, one of the most successful airlines is suffering, as their losses

increase in the latter half of 2019 and relationships with customers begin to decline, resulting

in a major problem that affects the way they communicate with the customers. Showing the

frustration of the loyal customers, negative ratings from the customers, complaining about

delayed/cancelled flights and mishandling of baggage are being posted online. Although these

factors break down the name of the company, there is one sector in this issue that seems to

be praised by the customers, the customer service. This shows us that the company has the

capability to improve the quality of their services but are not willing to spend and make

improvements.

V. Market Research: Objectives of the Research

will copy paste my part later or tom am my laptop died so its charging :)

VI. Market Research: Approaches

In order to create a solution that could save Philippine Airlines from its decline, online

surveys will be conducted. If done right, survey research can provide usable information that
can guide the market researchers. There are several aspects that will be in line in the

discussion of the benefits of surveys. Online surveys are inexpensive to conduct due to the

method of disseminating the surveys. Also, surveys like such can have an extensive reach of

interviewees. Due to the survey being online, it is easier to spread them and ask people to

take part.
 Works Cited

https://gbr.pepperdine.edu/2010/08/airline-industry-key-success-factors/

https://en.wikipedia.org/wiki/Philippine_Airlines

https://www.philippineairlines.com/en/ph/home

https://www.allbusiness.com/the-five-basic-methods-of-market-research-1287-1.html

https://consumerboard.org/company/philippine-airlines-complaints