Philippine Airlines

PHILIPPINE AIRLINES SUPPLY CHAIN

PIONEERS OF THE SKIES With a proud heritage, Philippine Airlines continues to forge a path of innovation and customer-centric service with Captain Stanley Ng at the helm; the President and COO discusses plans, pilots, and progress Writer: Rachel Carr | Project Manager: Taylor Green

2 | APAC Outlook Issue 68

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s an archipelago consisting of 7,641 islands and islets, the Philippines is a Southeast Asian nation located in the west of the Pacific Ocean, off the coast of Vietnam.

Over eight decades ago, it became apparent the country needed air transport not only to facilitate economic growth and development but also to link the chain of subcontinental land to the rest of the world with the fastest mode of connectivity.

As a true industry pioneer and flag carrier, Philippine Airlines (PAL) was the first commercial airline in Asia and is currently the Philippines’ only fullservice network airline.

Now headquartered at the Lucio K. Tan. Jr. Centre in Pasay, PAL is easily

Captain Stanley Ng, President and COO

identifiable by its logo, which comprises two red and blue sail triangles with an eight-rayed yellow sunburst.

During the COVID-19 pandemic, PAL flight crew wore unique and functional protective gear specially designed by Filipino couturier Edwin Tan that featured the colours of the airline, which are also a nod the flag of the Philippines.

The company’s origins date back to 1931 when visionary entrepreneur Andres Soriano founded the Philippine Aerial Taxi Company.

However, he closed the fledgling aviation firm in 1939 and replaced it with PAL a few years later.

Braving the imminence of war, PAL began with an inaugural flight from Manila to Baguio on March 15th, 1941, carrying only five passengers.

Today, PAL operates a fleet of Boeing, Airbus, and De Havilland aircraft, providing scheduled non-stop

APAC Outlook Issue 68 | 3

PHILIPPINE AIRLINES SUPPLY CHAIN

Captain Stanley Ng, President and COO

flights from its hubs in Manila, Cebu, Clark, and Davao to 33 other destinations within the Philippines.

Additionally, it offers flights to 39 other destinations in Asia, North America, Australia, and the Middle East.

PAL’s network includes islandhopping flights to fabulous beach resort destinations, high-tech hubs, eco-tourism havens, and ultralong-haul transpacific flights linking Southeast Asia to the US mainland – Los Angeles, San Francisco, and JFK Airport in New York, and Canada, namely Vancouver and Toronto.

“We are known for our warm and gracious service anchored in ‘Buong Pusong Alaga’, meaning wholehearted care, which embodies Filipino hospitality at its best,” 4 | APAC Outlook Issue 68

“ B Y H E L P I N G T O E N S U R E T H AT H I G H LY E SS E N T I A L G O O DS R E AC H I N T E N D E D M A R K E T S , W E K E E P S U P P LY C H A I N S M O V I N G , WHICH HELPS THE ECONOMY” – C A P TA I N S TA N L E Y N G , P R E S I D E N T A N D C O O , P H I L I P P I N E A I R L I N E S

explains Captain Stanley Ng, President and COO of PAL. “PAL takes pride in supporting the global economy by providing air cargo and charter services while also fulfilling the travel needs of overseas Filipinos, businesspeople, tourists, and families from all around the world. We consider it a privilege to have been given this opportunity to serve, and feel honoured to do so,” he continues.

NAVIGATING A CAREER PATH Captain Ng assumed the role of PAL’s president in 2022 after holding various positions in Flight Operations, including Head of PAL’s Operations Group and Chief Pilot of the Airbus A320 fleet.

Soon after taking up his prestigious post, he became part of a significant, special moment in history. He had the privilege of captaining a flight

PHILIPPINE AIRLINES SUPPLY CHAIN

A SHORT-HAUL HISTORY OF PAL 1940s – At the dawn of the aviation age, a fledgling airline

1980s – The passenger experience was elevated with the

began its journey just as World War II in the Pacific theatre

introduction of the Boeing 747 for transpacific and European

reached the Philippines. Determined to serve its battered na-

services, and the twinjet Airbus A300 for regional services.

tion, PAL’s fleet joined in the war effort. When it was over, the

The carrier continues to modernise its domestic fleet today

airline took on the mission of rebuilding the country through a

with Fokker50s, Shorts SD 360s, and Boeing 737s.

growing network of routes across the islands and beyond.

1990s – PAL was returned to private hands, and in its push

1950s – As the world was recovering from World War II,

to modernise, it ordered state-of-the-art aircraft, including

Filipino trade grew, and the airline’s network expanded

Boeing’s longer-range 747-400s and a family of Airbus

from Manila to as far east as London and as far west as San

A330s, A340s, and A320s.

Francisco, spanning two-thirds of the world.

2000s – The airline restored routes, rebuilt its secondary

1960s – PAL joined the age of the jet-powered aircraft and

hub in Cebu, reintroduced turboprop services through PAL

re-established its mission to link the Philippines to the world

Express, and accepted its first long-haul twinjet, the Boeing

after the government suspended international flights halfway

777-300ER.

through the previous decade.

2010s – PAL enhanced its offerings with new transpolar

1970s – More routes were introduced to ensure Manila

routings for non-stop flights to the east coast of North

became a crossroads of Asia and a gateway between the East

America, revived its Middle Eastern services, and introduced

and West. In 1974, a merger made PAL the sole flag carrier of

more advanced De Haviland Dash 8-400s for inter-island

the Philippines, and it acquired its first widebody aircraft, the

flights, as well as Airbus A350-900s and A321neos for

McDonnell Douglas DC-10.

international routes.

6 | APAC Outlook Issue 68

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for the President of the Philippines, Ferdinand “Bongbong” R. Marcos Jr., who was on a mission for the nation.

As the first active pilot to serve as the flag carrier’s top executive since the 1960s, Captain Ng ascended to the PAL presidency after an esteemed 18-year career with the airline.

“Before my time as a pilot, I was a customer service agent at Manila Airport, which provided me with an insight into how PAL interacts with customers at the heart of its operations,” he recalls.

After joining the airline, he underwent his Ab Initio Cadet Pilot training at the PAL Aviation School and joined the pilot roster as a Second Officer in 2006. Subsequently, he rose through the ranks and served as Chief Pilot of the PAL Airbus A320/A321 fleet.

“Everything I have experienced has helped me hone our vision for PAL and enable it to transform itself into a reliable and profitable flag carrier that Filipinos can be truly proud of.

“Our goal is to differentiate the company from other industry players, locally and internationally, through our route network of non-stop flights to major global markets, the

“ B Y H E L P I N G T O E N S U R E T H AT H I G H LY E SS E N T I A L G O O DS R E AC H I N T E N D E D M A R K E T S , W E K E E P S U P P LY C H A I N S M O V I N G , WHICH HELPS THE ECONOMY” – C A P TA I N S TA N L E Y N G , P R E S I D E N T A N D C O O , P H I L I P P I N E A I R L I N E S

PAL FOUNDATION The PAL Foundation was established in 1992 as the corporate social responsibility (CSR) arm of Asia’s first airline. The foundation aims to leverage PAL’s airlift capacity to contribute to social welfare development and promote environmental sustainability. This includes providing assistance to marginalised sectors, aiding in disaster relief efforts, and supporting environmental conservation initiatives.

PAL is fully committed to sustainable development and investing in the Filipino people. The company places great importance on the well-being of its customers, employees, the environment, and the community at large.

Its vision to uplift the welfare of communities connected by the PAL network, and its mission to pursue social welfare programmes that assist marginalised individuals and sectors of society, utilises the national flag carrier’s airlift capacity and other resources to deliver aid, transport medical patients, promote Filipino excellence in sports and culture, safeguard the environment, and support the needs of communities served by PAL.

8 | APAC Outlook Issue 68

acquisition of latest-generation aircraft, and our service innovations,” Captain Ng reports.

PAL has always led the trend in the aviation industry and continues to do so. Aside from its young, modern fleet and state-of-the-art facilities, it also has one of the most extensive computer systems and radio communications networks in the Philippines.

“Our mission is to build a strong base of dynamic and driven employees who can effectively represent and promote the PAL ethos of quality Filipino service. We are currently focused on implementing digitalisation initiatives that will revolutionise customer service and engagement,” Captain Ng shares enthusiastically.

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A DYNAMIC DELIVERY Alongside commercial passengers, PAL supports the global economy with air cargo through its port-todoor service.

“Our airline offers direct flights to major global markets in North America, Australia, the Middle East, and all over Asia, making us the top choice for the Philippine economy.

“Thus, we have the capability to address specific freight transport requirements of various sectors. We are able to utilise our cargo space to transport goods throughout the Philippines and the rest of the world,” Captain Ng informs us.

In addition to the usual freight service, PAL has introduced rapid handling of urgent shipment (RHUSH), the fastest way to ship domestically or overseas. Advantages include the highest cargo loading priority, guaranteed space, and fast acceptance and release time.

“We regularly carry essential goods such as e-commerce, vaccines, medical supplies, tissue samples and organs to save lives, and perishable cargo such as fruits, vegetables, marine, and meat products. Additionally, we carry live animals on our ventilated aircraft, and furry family members in accordance 10 | APAC Outlook Issue 68

PAL FOUNDATION PROGRAMMES AND ACTIVITIES MEDICAL TRAVEL GRANT – Partnering with healthcare organisations to help transport patients with serious medical conditions, along with their escorts, to cities in the Philippines or abroad where they can be given the necessary medical treatment at specialised hospitals. The foundation also transports medical volunteers on missions to serve disadvantaged communities throughout the Philippines.

HUMANITARIAN CARGO GRANT – Helping to facilitate the airlift of relief goods and essential supplies to assist disaster-stricken and marginalised communities.

DISASTER RESPONSE – Assisting the rescue, relief, and rebuilding efforts of communities affected by disasters such as typhoons, earthquakes, and oil spills.

REPRESENT PINOY – Granting travel assistance to underprivileged but outstanding Filipinos who represent the country in global competitions in the fields of sports, arts, and academics.

MABUHAY MILES WITH A MISSION – Helping generous PAL Mabuhay Miles members donate unused flight miles to support the foundation’s advocacies and programmes.

OUTREACH TO UNDERSERVED COMMUNITIES – Organising activities that provide assistance to underserved communities and sectors, including support for underprivileged children, the elderly, and people with disabilities through livelihood programmes, material donations, and other initiatives.

ENVIRONMENTAL AWARENESS – Protecting the environment by supporting programmes for the conservation of forests and marine biodiversity.

COVID-19 PANDEMIC ASSISTANCE – Organising initiatives to help alleviate the effects of the COVID-19 pandemic on vulnerable sectors.

Creating Connected Inflight Experiences for Today and the Future

Next Generation of RAVE The IFE system with a focus on sustainability.

Consisting of an innovative new lightweight DC power system and MiniLED displays for premium cabins.

RAVE OS Open Platform Allows third party developers or airlines to autonomously build and deploy applications that will run on RAVE OS. RAVE Cloud Services Over the Air Distribution developed in conjunction with Amazon Web Services (AWS) + Edge Cloud Technology for large scale processing and data storage onboard.

PHILIPPINE AIRLINES SUPPLY CHAIN

MILLION MILER PRIVILEGES PRE-FLIGHT – Waiver of all Mabuhay Miles processing fees, including Million Miler card replacements, ticket servicing charges, advance seat reservations on choice seats and forward seats, and more.

DURING THE FLIGHT – Priority check-in, luggage handling, boarding (extended to one travelling companion), airport stand-by, additional free baggage allowance, access to the Mabuhay Lounge, and VIP Lounges with two travelling companions.

POST-FLIGHT – Discounts and perks from selected programme partners, tier-based bonus miles on top of those earned for

with live animal regulations (LARs).

“We also transport human remains, and during the COVID-19 pandemic, we arranged dedicated, specific flights to carry the remains of overseas Filipinos who had passed away in foreign countries.

Additionally, we use Manila as a transit hub for cargo destined for other countries,” details Captain Ng. Naturally, PAL must adhere to strict International Air Transport Association (IATA) guidelines when transporting the recently deceased, and the airline carries out the task with the utmost respect. Furthermore, the cabin crew had protective gear incorporated into their uniforms to carry out the repatriation flights in the wake of the COVID-19 pandemic crisis.

“By helping to ensure that highly essential goods reach intended markets, we keep supply chains moving, which helps the economy,” he declares.

THE CONSUMMATE CREW Safety is paramount to PAL and 12 | APAC Outlook Issue 68

its sister company, PAL Express (PALex). To ensure cabin crew are well-equipped to perform their duties, training is completed in-house, and the In-Flight Services Training (IFST) Division handles the requirements so that the team receives the necessary knowledge, skills, values, and attitudes (KSVA) to perform tasks effectively.

When selecting new employees, PAL seeks individuals with specific skill sets to represent the company’s values and exceed customer expectations. Captain Ng encourages team members to assert themselves and bring fresh perspectives to their work.

“I value courage and the ability to speak one’s mind when the situation calls for it, along with introducing new ideas and ways of doing things.

“I admire individuals who put forth their utmost effort to complete a task, learn from their errors, and progress forward, developing their skills in the process. The honing of one’s abilities is a product of an individual’s

economy class, comfort class, premium economy, and business class based on distance flown, 25 percent tier-based bonus miles on PAL and PAL Express flights (except to or from the US and Canada), and 75 percent tierbased bonus miles on PAL flights to or from the US and Canada.

concentration and resolve, together with the support of their work environment, tools, and resources.”

As part of the company’s innovation efforts, PAL has invested in a virtual reality (VR) training programme. This is a first of its kind in Filipino aviation, developed in collaboration with a local start-up and the Civil Aviation Authority of the Philippines (CAAP).

The programme offers an immersive experience that improves learning and service standards, resulting in higher retention rates.

Moreover, the interactive and engaging nature of the training makes it more fun to participate in.

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PHILIPPINE AIRLINES SUPPLY CHAIN

Indeed, Captain Ng adopts an open and inclusive approach to leadership, where ideas are explored, and mistakes are seen as learning opportunities.

“As leaders, we must acknowledge the skills of our team members and collaborate with them towards a common goal or vision. We should empower and trust our people, providing them with the freedom to innovate and execute at their best, while keeping a strong focus on meeting our customers’ needs and wants. This means having a customercentric approach and a dedication to providing excellent service,” Captain Ng emphasises.

CHARTING A NEW COURSE To secure the airline’s future, PAL maintains its own air academy to provide a steady supply of pilots.

Since it was established in 1960, the PAL Aviation School has aimed to produce competent pilots with a focus on the airline industry, utilising modern equipment and methodologies in its comprehensive training programme.

The airline understands the importance of having a competent crew to pilot its planes. However, that’s not the only wise business 14 | APAC Outlook Issue 68

“ W E A R E K N O W N F O R O U R WA R M A N D G R AC I O U S S E RV I C E A N C H O R E D I N ‘ B U O N G P U S O N G A L A G A’ , M E A N I N G W H O L E H E A R T E D CARE, WHICH EMBODIES FILIPINO H O S P I TA L I T Y AT I T S B E S T ” – C A P TA I N S TA N L E Y N G , P R E S I D E N T A N D C O O , P H I L I P P I N E A I R L I N E S

move PAL has made; the airline also takes care of its digital assets by introducing technology to improve the flight booking experience for its customers.

PAL will integrate Customer 360 – Salesforce’s integrated customer relationship management (CRM) platform powered by artificial intelligence (AI) – across the airline’s contact centre and customer feedback handling units.

“This will give us a comprehensive view of each customer’s interactions so we can personalise and elevate the overall passenger experience while enhancing internal processes to improve efficiency,” Captain Ng clarifies.

The cloud-based software will link PAL with its customers in a whole new way, thus enhancing productivity as well as connectivity.

“We will also use Salesforce’s Sales Cloud, Service Cloud, Marketing Cloud, and Customer and Partner Portals, as well as Slack, to provide employees with the insights and tools they need to deliver exceptional customer experiences while boosting internal processes to improve efficiency,” Captain Ng explains.

The airline also plans to harness the power of AI through the Salesforce Einstein Chatbot, leveraging its ability to utilise natural language processing (NLP) to understand and respond to customer enquiries.

As well as its fully-fledged transformation journey, PAL is making significant upgrades to its fleet. In 2023, the company placed an order for nine Airbus A350-1000s, with options to purchase three more and deliveries starting from Q4 2025 until 2027.

PHILIPPINE AIRLINES SUPPLY CHAIN

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PHILIPPINE AIRLINES SUPPLY CHAIN

“Similar to the A350-900, an aircraft we already employ in our fleet, the A350-1000s will be the most advanced new-generation aircraft in any Philippine air carrier fleet, and we will equip these with three cabin classes; namely economy, premium economy, and business,” he reveals.

Fleet renewal can equally help reduce environmental impact by using the latest generation of aircraft, which are quieter and more fuelefficient than their predecessors.

“We are working on other fleet renewal plans and will announce new developments in due course,” Captain Ng concludes.

PAL MABUHAY MILES FREQUENT FLYER AND LOYALTY PROGRAMME ‘Mabuhay!’ is a traditional Filipino greeting that means ‘Long live!’ and ‘Welcome!’ It is PAL’s traditional way of greeting passengers and is also the name of its frequent flyer programme, known as Mabuhay Miles.

The term is also used when making ceremonial toasts during happy occasions as a way of saying ‘Cheers!’, and with PAL, there is always something to celebrate.

The rewards system entitles the passenger to ‘miles’ from each flight, which can be redeemed in the form of rewards such as flights (domestic, regional, or international), or service upgrades to business class.

The frequent flyer programme has four different membership tiers – Classic, Elite, Premier Elite, and Million Miler – each with corresponding privileges.

When a customer initially signs up for Mabuhay Miles, they become a member of the Classic tier. However, depending on their travel activity during a calendar year, they can move up or down a tier annually.

Million Miler is the prestigious upper tier for loyal PAL customers who have earned premium privileges.

At this high level, customers 16 | APAC Outlook Issue 68

LAUNCH OF MANILLA-SEATTLE FLIGHT ROUTE PAL is proud to be the first airline to directly link the Philippines and the Pacific Northwest area in the US, with continuous flights between Manila and Seattle commencing from October 2024.

Seattle marks PAL’s sixth location in the country, operating the largest network of non-stop flights from the Philippines to the US, also jetting off to Los Angeles, San Francisco, New York, Honolulu, and Guam.

The direct flights from Seattle and the wider region will help stimulate business and leisure travel in Manila, as over 9,000 Americans visited the Philippines in 2023, making the US the country’s second largest source of tourists.

As such, the new service, which coincides with the plans for an upgrade of Ninoy Aquino International Airport, will heavily boost the tourism industry of both nations.

“PAL is happy to say ‘Mabuhay, Seattle!’ Our Manilla-Seattle-Manilla flights give us a valuable opportunity to promote our beautiful island country as a flourishing tourist and business destination for American travellers.

“We also look forward to serving Filipinos who hope to reunite with family members or experience new travel adventures in the vibrant US Pacific Northwest,” excites Captain Ng.

receive top-priority treatment and personalised travel assistance throughout their journey.

PASSENGER PRIVILEGES As the name suggests, customers must have flown one million cumulative tier/flight miles on PAL and PAL Express in order to become Million Milers.

The privileges offered to customers are not limited to the journey, as they are also available before and after the flight. Additionally, customers are entitled to receive four complementary upgrade certificates each year, in addition to those they have already earned and premium gifts bestowed along the way.

One of the most common ways to earn Mabuhay Miles is to book flights through PAL’s codeshare partners or through its website, where customers can also use a mileage calculator to estimate how many miles they can earn per booking.

Moreover, those who fly often have the option to purchase miles. This feature and can be used for either the customer’s personal account or as a gift.

However, it’s important to note that buying miles does not contribute towards tier advancement, while the maximum number of miles that can be credited to any account within a year is 150,000.

Alternatively, miles can also be earned through transactions with programme partners such as Petron, SMAC, banks including Metrobank, BPI, and BDO, and hotels like Shangri-La and Dusit Hotels and Resorts.

Hotline: (+632) 8539-0000 (+632) 8855-8888

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PHILIPPINE AIRLINES SUPPLY CHAIN

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APAC Outlook Issue 68 | 17

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