Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
Akiestar
Topic Author
Posts: 970
Joined: Wed May 06, 2009 6:51 am

Ramon Ang: Give Me 1 Year To Turn PAL Around

Sun May 13, 2012 7:50 am

Allow me to post this outside the main Philippine aviation thread as I think A.Net might find this interesting. Ramon Ang, the new President and CEO of Philippine Airlines (and a licensed pilot, too), has announced his intention to turn PR around in one year.

Several news outlets are covering the story.

http://www.philstar.com/Article.aspx...nSubCategoryId=66&articleId=805690

Quote:
In an interview following the annual stockholders meeting of SMC’s liquor unit Ginebra San Miguel yesterday, Ang said his goal is to keep the struggling airline flying and turn it into a five-star value carrier.

PAL is a good airline and brand. We’re confident we can turn PAL and its sister budget carrier Air Philippines around in a year. Give me a year or two, PAL will have the most beautiful FAs (flight attendants) and the best service,” said Ang, who earned a reputation for engineering business turnarounds.

I'd like to see that: the most beautiful F/As and the best service in one year! 

The same article also hints at North America expansion: JFK or EWR within the next three months (although unlikely because of Cat II), and YYZ within the year.

Quote:
Part of the plan is to fly non-stop to New York from Manila within the next three months.

Ang said PAL is also hoping to resume flights to Europe, the Middle East as well as the East Coast of the United States as he expressed confidence the Philippines can restore the country to US Category 1 status. “We hope to fly to Toronto within the year,” he said.

Meanwhile, on a more technical note, the new management intends to implement a new ticketing system (OLCI was, for example, promised by the previous management for implementation this year, but I don't know what happened with that), as well as increased aircraft utilization and better yield management.

Quote:
PAL’s return to profitability one year after SMC’s takeover, Ang said, would be achieved through the implementation of a better sales and ticketing system and reduction in cost through higher utilization of aircraft.

He said PAL would implement a “better system of selling to get a better yield and better pricing.”

Ang also said that operating costs could be significantly reduced by increasing aircraft utilization from about 10.5 hours per day to 12 to as high as 16 hours daily, in line with international benchmarks.

Doing so would help achieve PAL’s turnaround even before the planned refleeting program that Ang had extensively discussed.

http://business.inquirer.net/58689/p...etting-back-in-the-black-in-a-year

This will be one very interesting year for PR

[Edited 2012-05-13 00:59:27]
 
airlineaddict
Posts: 394
Joined: Wed Jan 19, 2005 12:37 pm

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Sun May 13, 2012 11:33 am

Thanks Akiestar for the articles. Proclaiming a return to NYC within three months is very bold unless Ang has something up his sleeve... codeshare? wet lease? Hope this is not all bluster.

Quote:
Ang, who recently became chief executive officer of PAL, added that he would find ways to review current routes and introduce non-stop Manila-New York flights in the next three months.

(snip)

But Ang said SMC was "doing something" to be able to fly to new destinations in the United States.
 
Akiestar
Topic Author
Posts: 970
Joined: Wed May 06, 2009 6:51 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Sun May 13, 2012 1:32 pm

Quoting airlineaddict (Reply 1):
Proclaiming a return to NYC within three months is very bold unless Ang has something up his sleeve... codeshare? wet lease? Hope this is not all bluster.

So far people have no idea how this will be done. I read somewhere before that PR was in talks with the FAA for exemptions, but I don't see that happening. Wet leases could be possible, provided they'd be properly-managed, unlike what happened in the 1990s.

However, I thought airlines from Cat II countries can't codeshare with American airlines? Isn't that why AM couldn't codeshare with DL and vice-versa?
 
User avatar
LAXintl
Posts: 24820
Joined: Wed May 24, 2000 12:12 pm

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Sun May 13, 2012 4:53 pm

NYC in 3-months??

Sounds like they need to do a wet-lease if that is indeed the plan. Last time they served NYC (EWR) they did so with World Airways MD-11.


View Large View Medium
Click here for bigger photo!

Photo © Michael F. McLaughlin

Quoting Akiestar (Thread starter):
PAL is a good airline and brand.

I dont know what the brand is considered inside the Philippines, but outside and compared to the true 5-star Asian carriers, PAL in my mind is know as a sick man with rather mediocre product.

Quoting Akiestar (Thread starter):
goal is to keep the struggling airline flying and turn it into a five-star value carrier.

I think the key here is "value carrier".

Sounds like PAL understands they don't have a chance to become a true 5-star operation, but instead will focus on a more hybrid low fare, happy go luck model still servicing the ethnic flow.


I'm still waiting to see how the PAL unions take to the new management. As we know there continues to be simmering on going disputes. Also how will the various branches of the government help, or hinder any revitalization efforts at PAL?
From the desert to the sea, to all of Southern California
 
Akiestar
Topic Author
Posts: 970
Joined: Wed May 06, 2009 6:51 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Sun May 13, 2012 6:07 pm

Quoting LAXintl (Reply 3):
I dont know what the brand is considered inside the Philippines

Well, they still have a reputation better than 5J, as far as I know.

Quoting LAXintl (Reply 3):
I'm still waiting to see how the PAL unions take to the new management. As we know there continues to be simmering on going disputes.

PALEA recently indicated a willingness to return to the negotiating table, but they still insist on the reinstatement of all the workers laid off last year.
 
User avatar
neutrino
Posts: 1536
Joined: Thu May 10, 2012 5:33 pm

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Sun May 13, 2012 6:29 pm

Quoting LAXintl (Reply 3):
Quoting Akiestar (Thread starter):
PAL is a good airline and brand.

I dont know what the brand is considered inside the Philippines, but outside and compared to the true 5-star Asian carriers, PAL in my mind is know as a sick man with rather mediocre product.

Its sad that Asia's first airline is in its current unenviable state.
My first flight with them was on the Japanese built NAMC YS-11 turboprop from Manila to Legaspi way back in 1979. Memorable!
I used to fly on them regularly on their Sin-Mnl sector till the advent of the LCCs.
Their cabin crew were at least on a par with Thai Airlines. My last experience with them was in 2005 on a half full widebody flight. For over an hour I cornered the attention of half a dozen of them after I casually mentioned that I am more than a passing acquaintance of the son of a previous PAL owner. In the course of our inane conversations, during with I was continuously loaded with goodies from the galley, the more senior ones recalled fondly the good old days of their interaction with that late owner and his son.
Here's wishing PAL all the best for the future.
Potestatem obscuri lateris nescitis
 
Flighty
Posts: 9963
Joined: Thu Apr 05, 2007 3:07 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Sun May 13, 2012 6:31 pm

Quoting Akiestar (Thread starter):
I'd like to see that: the most beautiful F/As and the best service in one year

Getting a fleet of aircraft takes years... locating a ton of pretty women in the Philippines would take about 12 hours.
 
smi0006
Posts: 2586
Joined: Wed Jan 16, 2008 7:45 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Sun May 13, 2012 8:16 pm

Quoting Akiestar (Thread starter):
Meanwhile, on a more technical note, the new management intends to implement a new ticketing system (OLCI was, for example, promised by the previous management for implementation this year, but I don't know what happened with that), as well as increased aircraft utilization and better yield management.

I believe this was supposed to come in when they were supposed to updated their DCS (Departure Control System) to SABRE's latest one. In true PAL style it was supposed to be implemented in February ... then June.... then October... now 'soon'. For some reason they simply can't get it to work for them, and training and the setting of LOPs has ahem been conducted in again PALs typical confusion.

Still I wish PAL the best of luck! Here is hoping for a new uniform for their staff to their current one is pretty dull and ugly!
 
User avatar
SANFan
Posts: 5433
Joined: Sun Aug 06, 2006 10:10 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Sun May 13, 2012 10:36 pm

I find the discussion about the little Cat I/Cat II issue interesting:

Quote:
Since 2008, the US Federal Aviation Administration has also downgraded the Philippines to Category 2 safety, effectively banning local carriers from expanding their operations in the United States.

With the Category 2 status in force, PAL is limited to various destinations in the US, including Los Angeles, San Francisco, Honolulu, Guam and Las Vegas via Vancouver.

But Ang said SMC was “doing something” to be able to fly to new destinations in the United States.

Ahhhh, why didn't anyone else think of that - the secret "something"! I didn't realize it was that simple. I guess he does have it figured out in that he plans on flying nonstop to New York within, what, 3 months?!

Quote:
Ang, who recently became chief executive officer of PAL, added that he would find ways to review current routes and introduce non-stop Manila-New York flights in the next three months.

Yeah, JFK within 3 months! That's what I thought he said.

Given the above, I put little stock in anything that was said in the article. But then, I would be surprised if a new CEO said anything less... (It would just be refreshing for once to hear some slightly more realistic goals perhaps.)

bb
 
AngMoh
Posts: 1065
Joined: Fri Nov 04, 2011 5:03 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Sun May 13, 2012 11:14 pm

Quoting SANFan (Reply 8):
Yeah, JFK within 3 months! That's what I thought he said.

It is only 8520mi which would make it the 4th longest non-stop flight. Just get a couple of A345 from Thai, repaint them and you are done. Simple. And if 77L's are for sale cheap from AI, get them instead.  
727 732 733 734 735 73G 738 739/ER 742 743 744/M 752 753 762 772 77E 773 77W 788 A300 A310 A319 A320 A321 A332 A333 A343 A345 A346 A359 A35K A388 DC-9 DC-10 MD11 MD81 MD82 MD87 F70 ERJ145 E170 E175 E190 E195 ATR72 Q400 CRJ200 CRJ700 CRJ900 BAE146 RJ85
 
Lostmoon744
Posts: 163
Joined: Fri Aug 25, 2006 3:29 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Mon May 14, 2012 12:24 am

Seeing is believing. Not getting my hopes up until we actually see results. Wishing them the best of luck.
 
ORDJOE
Posts: 682
Joined: Wed Aug 11, 2010 2:27 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Mon May 14, 2012 1:35 am

I wish pr the best, doubt 3 months but over a few years. I have read a few trip reports on pr, they mostly seemed good. I know the business class is not like CX or sq but it is done well.
 
MKEdude
Posts: 960
Joined: Thu May 05, 2005 9:55 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Mon May 14, 2012 7:06 am

Quoting Flighty (Reply 6):
Quoting Akiestar (Thread starter):
I'd like to see that: the most beautiful F/As and the best service in one year

Getting a fleet of aircraft takes years... locating a ton of pretty women in the Philippines would take about 12 hours.

Only if you take an 11-hour nap first!  

But seriously the big problem here is the cat II status. What needs to take place before that can be lifted? Because with Cat II still in place all the plans involving the US and the EU are moot.
"You can't be a real country unless you have a beer and an airline." Frank Zappa
 
Byrdluvs747
Posts: 2540
Joined: Thu Jul 15, 2004 5:25 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Mon May 14, 2012 7:39 am

Quoting SANFan (Reply 8):
Yeah, JFK within 3 months! That's what I thought he said.

Can PR draw the premium traffic needed to make such a long stage length flight profitable?
The 747: The hands who designed it were guided by god.
 
User avatar
SANFan
Posts: 5433
Joined: Sun Aug 06, 2006 10:10 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Mon May 14, 2012 7:57 am

Quoting AngMoh (Reply 9):
It is only 8520mi which would make it the 4th longest non-stop flight. Just get a couple of A345 from Thai, repaint them and you are done. Simple. And if 77L's are for sale cheap from AI, get them instead.
Quoting Byrdluvs747 (Reply 13):
Can PR draw the premium traffic needed to make such a long stage length flight profitable?


These questions miss the point. As 'dude repeated from my earlier post:

Quoting MKEdude (Reply 12):
But seriously the big problem here is the cat II status. What needs to take place before that can be lifted? Because with Cat II still in place all the plans involving the US and the EU are moot.


   Exactly. Can a PR airplane fly the route to JFK? Can they get pax up front? Irrelevant when you don't have the permission of the US to fly this or any route to the US until the Philippines returns to Cat I status. And, AFAIK, that is NOT possible anytime soon...

bb
 
Byrdluvs747
Posts: 2540
Joined: Thu Jul 15, 2004 5:25 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Mon May 14, 2012 8:32 am

Quoting SANFan (Reply 14):
Irrelevant when you don't have the permission of the US to fly this or any route to the US until the Philippines returns to Cat I status.

It's only irrelevant from an operational standpoint. From a planning perspective, it's perfectly relevant to analyze the ability of PR to operate a highly premium dependent route. It would be highly inefficient for PR to wait until CAT I, to start evaluating JFK. If I were the CEO, I would want my staff to be asking these questions now and have a plan ready to execute when CAT II is lifted.

So my question remains. Can PR draw the yields necessary to make JFK profitable?
The 747: The hands who designed it were guided by god.
 
Akiestar
Topic Author
Posts: 970
Joined: Wed May 06, 2009 6:51 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Tue May 15, 2012 12:52 pm

Quoting Flighty (Reply 6):
locating a ton of pretty women in the Philippines would take about 12 hours.

But training them to be good F/As takes a little while longer, too! 
Quoting Byrdluvs747 (Reply 15):
So my question remains. Can PR draw the yields necessary to make JFK profitable?

The New York metropolitan area has a very large Filipino community, so I can see the possibility for demand. Now I don't know if PR can generate enough traffic up front to justify high yields, but if they push through with product improvements then I can probably see some demand up front being generated in due time should a route like this be launched.
 
airways1
Posts: 540
Joined: Mon Jul 19, 1999 3:05 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Tue May 15, 2012 1:22 pm

Quoting Akiestar (Thread starter):
PAL will have the most beautiful FAs

So does that imply that current PAL FAs are not the most beautiful, and if so, will they shortly be looking for new jobs?
 
User avatar
Devilfish
Posts: 7168
Joined: Tue Jan 24, 2006 7:52 am

RE: Ramon Ang: Give Me 1 Year To Turn PAL Around

Wed May 16, 2012 3:08 am

Quoting LAXintl (Reply 3):
I think the key here is "value carrier".

Sounds like PAL understands they don't have a chance to become a true 5-star operation, but instead will focus on a more hybrid low fare, happy go luck model still servicing the ethnic flow.

They know their key market and will not stray from it. Premium heavy model is a medium term goal at best, and could only come when the country really takes off economically and has the business demand to make such an operation viable.

Quoting AngMoh (Reply 9):
It is only 8520mi which would make it the 4th longest non-stop flight.

Overflight restrictions (no ETOPS) could make it a bit longer.....

.
http://www.gcmap.com/map?P=jfk-yvr-m...jfk-ngo-mnl&MS=wls&MX=540x540&PM=*

JFK-MNL traffic might fill a plane...hopefully, yields would be enough to sustain the route. If not, a stop at YVR or say, NGO could provide the front-end business to help with the bottom line (without immediately requiring a brand-new aircraft type). Also, unsure what percentage of that market would prefer the 16.5 hour long flight to avoid an intermediate stop.

Quoting AngMoh (Reply 9):
Just get a couple of A345 from Thai, repaint them and you are done. Simple.

Given that PR is getting rid of their A340s, doubtful that A345s are in the cards. They'd only be in that much of a hurry if suddenly Cat 2 was miraculously lifted...in which case, their other 77Ws due for delivery could readily be pressed into service (with a slight penalty)...as high load factors may not be seen at the service's start (again taking into account the intrepid souls who'd brave the backbreaking stretch for the time saved.) Might still be cheaper than buying new planes outright or subleasing.

Quoting AngMoh (Reply 9):
And if 77L's are for sale cheap from AI, get them instead.

Note on Controller.com says those have already been sold. The remaining frames are for 8-10 year leases...and which in any case, are not in the two-class configuration that PR has now settled with.....

http://www.seatguru.com/airlines/Air...dia/Air_India_Boeing_777-200LR.php

Quoting airways1 (Reply 17):

So does that imply that current PAL FAs are not the most beautiful,

They may still be.....but the competition will likely be younger.   

[Edited 2012-05-15 20:27:45]
"Everyone is entitled to my opinion." - Garfield

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos