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Philippine Airlines SWOT & PESTLE Analysis

ID : 52958553| Jun 2021| 14 pages

COMPANY PROFILE -Philippine Airlines

Business Sector :Aviation

Operating Geography :Philippines, Asia, Global

About Philippine Airlines :

Philippine Airlines (PAL), a subsidiary of PAL Holdings, Inc., is the country's flag carrier. It is headquartered at the PNB Financial Center in Pasay, Philippines. In 1941, Philippine Airlines was founded by a group of businessmen led by Andres Soriano, one of the country's leading industrialist and it is the first and oldest commercial airline in Asia operating under its original name. It serves 31 domestic destinations and 54 international destinations in Southeast Asia, East Asia, the Middle East, Oceania, North America, and Europe from its hubs at Ninoy Aquino International Airport in Manila, Clark International Airport in Angeles, Mactan–Cebu International Airport in Cebu, and Francisco Bangoy International Airport in Davao. Philippine Airlines has a mixed fleet of Airbus and Boeing planes in operation, including the Airbus A320, Airbus A321, Airbus A321neo, Airbus A330, Airbus A350, and Boeing 777. Depending on the aircraft, Philippine Airlines offers Business, Premium Economy, and Economy classes. Their Airbus A330 and A350 aircraft have three classes, while the rest have two. As of May 2021, the PAL mainline fleet currently consists of 61 aircraft. In March 2021, Philippine Airlines reaffirmed its commitment to serving its passengers, announcing that it has already refunded more than 90% of COVID-related refund requests.
Philippines Airlines's Unique Selling Point or USP is that it manages a fleet of thirty-two modern wide-body and narrow-body passenger aircraft, making Philippine Airlines a reliable national airliner for the Philippines. Philippines Airlines' mission statement reads, "In delivering high-quality performance across 45 global quality metrics on product and service quality, Philippine Airlines has officially clinched a world-class rating".

Philippine Airlines Revenue :


PHP 154.5 billion - FY ending 31st December 2019 (y-o-y growth 2.65%)
PHP 150.4 billion - FY ending 31st December 2018

Competitive Analysis of Philippine Airlines

SWOT
PESTLE

The SWOT analysis for Philippine Airlines is presented below in a matrix followed by the detailed analysis report

StrengthsWeaknesses
1. Only Airlines in Philippines to have IOSA accreditation and highest safety rating of 7/7
2. One of the oldest and the first airline in Asia.
3. Excellent customer-satisfaction records, lowest fare, and multitudes of in-flight services
1. Philippine’s airlines underperformed the PH market and airline industry
2. Faces internal labor issues due retrenchment program
3. Unprofitable in the long-haul flight operations
OpportunitiesThreats
1. Growing tourism is expected to increase hotel revenue, diversifying in hotel industry can create value
2. Digitalization of legacy systems can help remain market leader in next decade
3. Focus on in-flight entertainment to drive growth going forward
4. Philippine Development Plan 2017–2022 to boost aviation sector
1. New entrants increasing competition post liberalization and starting to capture market
2. Impact of pandemic on aviation industry and Philippine Airlines
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Philippine Airlines

Strength

1. Only Airlines in Philippines to have IOSA accreditation and highest safety rating of 7/7: Philippines Airlines after acquiring its first IOSA, an Operation safety Audit exercise from International Air Transport Association, has successfully renewed it for the 7th time in 2020. Philippines Airlines is the pioneering carrier in Philippines to have this accreditation being granted. This accreditation is considered as gold standard for flight safety. It suggests that Philippines Airlines has put safety of operations as their topmost priority. Along with PAL, its subsidiary PAL Express also completed its 4th renewal of IOSA accreditation. PAL express is second in Philippines’ Airline industry to complete the accreditation. Also, PAL has received highest - 7-star rating for safety from the renowned airline rating agency Airlinerating.com.

Philippines airlines has been maintaining highest customer satisfaction through its commitment towards customer experience enhancement: They recently integrated Microsoft Kaizala app into their work management system in order to change scheduling mechanism which involved heavy paperwork, this helped them save 10hrs per employee. PAL also, provides lowest fare, delay information and assistance in itineraries creation to customers. They provide many in-flight services for business class and premium economy class customers, these services include Mabuhay lounge, a unique lounge service provide by PAL at airports. The premium economy customers are provided with complementary iPads during their journey. It also has Mabuhay Miles, a program for its frequent flyers, which offers various services based on Miles journey a customer has covered.

The remaining section under "Strength"is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threats

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • Malasia AIrlines
  • Air Aisa
  • Cebu Pacific
  • Emirates
  • Singapore Airlines
  • Ethihad
  • Qatar Airways
  • Thai Airways
  • Cathay Pacific
  • British Airways

Major Brands :

  • Philippine Airlines, Inc.
  • The Philippine national flag carrier
  • Air Philippines Corporation
  • PAL Express
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References used in Philippine Airlines SWOT & PESTLE Analysis Report

1. Product rating website picks PAL as 'Most Improved Airline' - https://www.pna.gov.ph/articles/1053919
2. Sustainability Report 2019 - https://phi.com.ph/wp-content/uploads/bsk-pdf-manager/2020/12/sustainability-report-2019.pdf
3. PAL completes ‘gold standard’ in flight safety audit - https://business.inquirer.net/297665/pal-completes-gold-standard-in-flight-safety-audit
4. Philippine airlines awarded highest safety rating - https://www.airlineratings.com/news/philippine-airlines-awarded-highest-safety-rating/
5. PAL Express Commitment to Customer Satisfaction - https://www.philippineairlines.com/en/aboutus/legalnotices/commitmenttocustomerpr2p/commitmenttocustomer2p
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2021). Philippine Airlines SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/philippine-airlines/ [Accessed 13 Jun, 2021].

In-text: (SWOT & PESTLE.com, 2021)

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Philippine Airlines SWOT and PESTLE Analysis has been conducted by Rakesh Shewale and reviewed by senior analysts from Barakaat Consulting.

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