Philippine Airlines Back In Black

<B> Philippine Airlines Back In Black</B>

By Judy Jacobs

Philippine Airlines' new terminal at Manila's Ninoy Aquino International Airport is the latest move by the carrier to re-establish its position as a major national, regional and international airline after a series of mishaps threatened its very existence.

As if the Asian economic crisis wasn't enough, added to the carrier's misfortunes was a pilots' union strike in June 1998, a ground personnel strike the following month, the company's filing for receivership and a cessation of operations from Sept. 23 to Oct. 7 last year.

The airline began reorganization early this year and struggled to get back on its feet. In April, it received a $200 million capital infusion and then underwent further restructuring. It gradually re-introduced many of its former domestic and international flights, but pared the number of planes and routes. PAL downsized its fleet to 22 aircraft with an average age of four years. It reduced its international routes to 11 from the 28 it previously flew and its domestic routes to 18 from 36.

While it was undergoing reorganization, Philippine Airlines was preparing to consolidate its operations in the new Centennial Terminal 2, which opened in August at Ninoy Aquino International. The new terminal has 12 gates, handles all of the airline's domestic and international flights and is capable of processing up to 9 million passengers per year.

For the first time in the carrier's 58-year history, it now has all its operations under one roof. And this makes everything run more smoothly, not only for the airline, but for its passengers. Previously, passengers connecting from international to domestic flights had to claim luggage, make their way to the domestic terminal nearly two miles away and re-check in at a domestic ticket counter. Now they merely have to walk to another gate for a connecting flight.

The new terminal also includes domestic and international Super Mabuhay lounges. In addition to making it easier for people to make their way from one flight to the next, PAL is working toward establishing shorter connecting times between international and domestic flights. Being in a single terminal and coordinating schedules for direct connections will allow the carrier to maximize its network and attract a significant amount of traffic on both fronts, airline officials said.

While for the present Philippine Airlines' route network of 11 international and 28 domestic routes is expected to remain steady, the airline still hopes to grow. "We plan to expand the network through bilateral and codeshare agreements that may evolve into major alliances," said Rollie Estabillo, Philippine Airlines spokesperson. "We currently maintain codesharing agreements with Emirates Airline, Egypt Air and Malaysia Airlines.