Airphil Express Case Study
II. STATEMENT OF THE PROBLEM
Airphil Express, which also has been called PAL express, is PAL’s budget airline. PAL's transfer of its pilots to its budget airline is the alleged reason for the resignation of the pilots.
PAL had to beef up its operations in order to compete with Cebu Pacific. However, instead of hiring new pilots for Airphil, PAL came up with a different strategy. PAL offered the pilots “another job” --- to be pilots but this time for Airphil Express where they would receive lower salaries and fewer benefits. Not all pilots accepted the “job offer”. Instead of waiting to be declared as redundant or to be offered a job at Airphil and thus meet the same fate as the other pilots, the others decided to resign.
Enticed by higher-paying jobs at foreign airlines, some 26 pilots left the PAL wing. The mass resignation took a toll on PAL flight schedules on the last Saturday of July. PAL cancelled several 150-seater Airbus A320 Manila flights en route to Bacolod, Iloilo, Cagayan de Oro, Cebu and Hong Kong because there were not enough pilots to fly the planes.
These problems which affected the public’s perception about PAL also affected the image of its budget airline, Airphil Express. Because of these events, public’s impression about Airphil Express is substandard as related to Philippine Airlines. With all these issues they affect the position of AirPhil Express in the airline industry.
Another thing, the Philippines lists many registered airline companies mostly chartered; there are only five competing commercial airlines with scheduled flights serving the domestic market. Leading among the five is Cebu Pacific which has captured 45.6 percent of the market, followed by Philippine Airlines-Airphil Express group which has flown a combined 4.9 million passengers in 2008. Next after PAL-Airphil Express group is Zest Airways which has already overtaken South East Asian Airlines.Zest Air which is formerly Asian Spirit has been acquired by Alfredo M. Yao
Airphil Express, which also has been called PAL express, is PAL’s budget airline. PAL's transfer of its pilots to its budget airline is the alleged reason for the resignation of the pilots.
PAL had to beef up its operations in order to compete with Cebu Pacific. However, instead of hiring new pilots for Airphil, PAL came up with a different strategy. PAL offered the pilots “another job” --- to be pilots but this time for Airphil Express where they would receive lower salaries and fewer benefits. Not all pilots accepted the “job offer”. Instead of waiting to be declared as redundant or to be offered a job at Airphil and thus meet the same fate as the other pilots, the others decided to resign.
Enticed by higher-paying jobs at foreign airlines, some 26 pilots left the PAL wing. The mass resignation took a toll on PAL flight schedules on the last Saturday of July. PAL cancelled several 150-seater Airbus A320 Manila flights en route to Bacolod, Iloilo, Cagayan de Oro, Cebu and Hong Kong because there were not enough pilots to fly the planes.
These problems which affected the public’s perception about PAL also affected the image of its budget airline, Airphil Express. Because of these events, public’s impression about Airphil Express is substandard as related to Philippine Airlines. With all these issues they affect the position of AirPhil Express in the airline industry.
Another thing, the Philippines lists many registered airline companies mostly chartered; there are only five competing commercial airlines with scheduled flights serving the domestic market. Leading among the five is Cebu Pacific which has captured 45.6 percent of the market, followed by Philippine Airlines-Airphil Express group which has flown a combined 4.9 million passengers in 2008. Next after PAL-Airphil Express group is Zest Airways which has already overtaken South East Asian Airlines.Zest Air which is formerly Asian Spirit has been acquired by Alfredo M. Yao