PAL Express is not a budget airline, executive says

By: Cherie Mercado, News 5, InterAksyon.com
Published: August 14, 2013 3:09 PM

PAL Express is not a budget airline.

Philippine Airlines (PAL) senior vice president for operations Nicky Gozon made this declaration last week, during the blessing of the company's newly-acquired a321 that arrived from the Airbus’ assembly line in Hamburg Germany.

PAL and PAL Express are one and the same in terms of safety and quality, Gozon emphasized, underscoring the branding strategy that the company will pursue in the coming days.

Currently, PAL management is in the thick of implementing its modernization program and reverse losses--worth more than P4 billion--and be profitable by next year.

PAL, which has pulled out of the domestic market, retained flights to high-density domestic routes of Cebu, Davao, and Gen San. But all other domestic flights will be served by PAL Express.

The new aircraft that just arrived is the first of the 65 Airbus ordered by PAL in their plans to add international destinations in Asia, the Middle East, and Europe.

The order was for 45 single-aisle A321s with a 199 seating capacity and tri-class cabins (business, premium economy, and economy) and 10 wide-body A330s with a 300 seating capacity for longer routes, and still the option of ordering 10 more A330s next month.
Additional flights for this year will include:

Doha (Qatar) November 1

Riyadh, Jeddah and Dammam (Saudi Arabia), December 1;

Dubai (United Arab Emirates), November 1 (to be operated by PAL Express)

Abu Dhabi (United Arab Emirates) October 1

London England (before end of 2013)

A composite team from the company is currently in London and will proceed to Paris to fix ground handling details for their flights.

While Manila-London might be possible for this year, Paris and Amsterdam are eyed to shortly follow by first quarter of next year.

On the domestic front, it is the perception of strict adherence to safety and competence of staff and crew that PAL would like to transfer to PAL Express as they compete in the budget carrier arena.

PAL will standardize training of staff and crew, airline operations and marketing for both PAL and PAL Express so they fall into one branding.

An insider also hinted on implementing promo fares for PAL express that may start as early as next month with fares going as low as budget fares on certain periods and destinations.

If PAL Express is not a budget airline, but is not offering business class seats then what category would it fall into?

“Somewhere in between” is how one officer describes it. Pretty much like premium economy seats--in between business and economy. Maybe they should call it a “premium low cost carrier.”

Source: http://www.interaksyon.com/article/68599/cherie-mercado--pal-express-is-not-a-budget-airline-executive-says