AB330 wrote:J343 wrote:AB330 wrote:
Found this analysis that explain why PAL continue to suffer losses and has widen when compared to previous years.
http://philippineairspace.blogspot.com/ ... s.html?m=1
The effect of this Updated Accounting Standards was far more significant IMHO.
Very useful insight. Also, I think aggressive rather than conservative route/network expansion contributed to the losses. PAL is competing with the ME3, GF, KU and Oman Air for PH-Middle East flights. Whilst the competition is good for customers, PAL might have taken more than it can take with their mediocre product (i.e 9 abreast Y on their A333s). Also, PAL's LHR is good news but I doubt they made any profit since they started the route in 2014 and they are competing against the ME3, CX, SQ and the Mainland Carriers. I think PAL should focus on Asia and N.America flights to return to profitability.
I agreed with regards to PAL Network should be mainly foucs on Inter-Asian and North American routes though the timing isn't good right since the CN3 along with other Sino Carriers dumping capacity by selling cheap Y fare ticket between Asia and North America. Other potential Medium to Long-haul that I can see be further developed is Australia and New Zealand which will certainly grow in the future though PAL sould be conservstive adding destination in this region.
Unfortunately, PAL is trying to compete with carriers who offers lower fares and better product. PAL has a strong potential to Australia but it will be tough to compete with SQ and MH. Even CX is offering lower fares to Australia from PH