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Business

PAL eyes Gen Y, Z

BUSINESS SNIPPETS - Marianne Go - The Philippine Star
PAL eyes Gen Y, Z
An airplane is captured preparing for landing at the Ninoy Aquino International Airport on March 7, 2024.
STAR / Russell Palma

Lucio “Han” Tan III and Capt. Stanley Ng are now looking to the future and laying out plans to attract more Gen Y and Z customers to fly the friendly skies with Philippine Airlines.

In a recent interview, Capt. Ng said that the Tan-owned airline is retooling its frequent flyer program, and one of its changes would be specifically to attract a younger generation of loyal flyers who will appreciate the value proposition of the country’s flag carrier of offering better service, safety, reliability and consistency.

According to Capt. Ng, its plan for the younger market would be through student discounts and working with educational institutions and schools. Likewise, he also hinted at possible Mabuhay Miles perks and tie-ups with some companies for discounts for some products such as computers or laptops.

He acknowledges though that business travel still provides PAL the higher yield as business travelers always still have to leave at their preferred schedule compared to leisure travel which is more price sensitive, but provides the airline more volume.

The premium economy segment, Capt. Ng revealed, has also gained more market share to 60 percent now from 20 percent when it was first introduced.

Domestic travel, he continued, has shown no slowdown, pointing out that while airfares may have gone up due to surcharges resulting from the higher price of fuel and other supplies, PAL’s base fare remains the same.

The country’s flag carrier is differentiating and defining itself with better service and seats, as well as being on time. “We constantly deliver on that...that’s why they always come back to us.”

PAL’s emphasis on reliability and consistency, the PAL president and COO pointed out, gives it the confidence to be able to comply with the new US government order on automatic refunds from US and foreign carriers that cancel or make significant changes to a scheduled flight to or from the US, or within the US, and who fail to offer a consumer an alternative flight or who rejects the alternative transportation.

Capt. Ng clarified that the new US government order is only for exceptional cases and not in force majeure situations. PAL, in fact, he said, is already subject to that regulation in Canada.

He admitted, “we don’t want disruptions as well...we will be more reliable..we have a good maintenance program... if the delay is caused by the airline, that is the time we have to pay.”

As such, PAL’s first flying pilot president assured the airline’s stakeholders, “we have to be more disciplined na lang in terms of scheduling flights, scheduling maintenance programs.”

Due to his increased responsibilities in running the airline, Capt. Ng divulged that he has not been able to personally fly any commercial flight for a year now, although he continues to maintain his qualification as a licensed commercial airline pilot by training on flight simulators. His last commercial flight was when he flew PAL’s inaugural flight to Perth, Australia last year.

It was also interesting to learn from him that PAL’s complement of female pilots is now up to 70, stressing that female pilots’ capability to fly is the same as male pilots.

But while Capt. Ng is now more busy with corporate management, he and Han have not neglected their health. Capt. Ng, in fact, has a more buff appearance which he reveals is due to the influence of Han. “I used to exercise, but stopped...Han encouraged me to go back.”

Shorter route to Lisbon

Korean Air is set to launch scheduled charter flights to Lisbon, Portugal from Sept. 11 to Oct. 25, offering an alternative route to the European city from the current Middle East routes offered by Emirates, Etihad and Qatar Airways.

For Filipinos who may want to hit two birds with one stone, a side trip to Korea before or after their trip to Portugal may be a more attractive alternative to taking the dominant Middle Eastern airlines that normally have stopovers either in Dubai, Doha or Abu Dhabi.

Korean Air will operate three weekly flights between Seoul Incheon and Lisbon on Wednesdays, Fridays, and Sundays. The flights will make a total of 20 round trips during the two months, serviced by the airline’s Boeing 787-9 fleet.

The scheduled charter flights are the only non-stop flights between Northeast Asia and Lisbon. Previously, travelers had to transfer in neighboring countries such as France and Spain, or switch to land transport upon arrival in Europe. The new direct flights will streamline the journey, making trips to Lisbon and its adjacent cities more accessible.

Lisbon is nestled along the banks of the Tejo (Tagus) River on the Iberian Peninsula, and offers a combination of historical and contemporary attractions. From the beautiful beaches to multiple UNESCO World Heritage sites, the city is an appealing destination for both leisure seekers and cultural explorers.

Filipinos who travel to Lisbon also make it a point to do a religious pilgrimage to Fatima. For those looking to immerse in local culture, a visit to the Jeronimos Monastery in the Belém district is highly recommended. This site is celebrated as the cradle of the Portuguese egg tart. Additionally, a tram ride through Lisbon’s streets offers an intimate view of its rich history and vibrant daily life.

Beyond Lisbon, the city of Porto is easily accessible by train. Known for its unique charm and cultural richness, Porto provides a deeper glimpse into Portugal’s local flavors and traditions.

Tickets are available on Korean Air website, mobile app, or through travel agencies. Korean Air also plans to extend the operations of the route into the winter season.

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