What is the flag carrier of the U.S?

What do you think is the best possible way to save our flag carrier PAL from bankruptcy?

• Watching the news report of PAL pilots,stewardess,cabin crew and other staff resigning left and right is like the same as the country's problem at present. Philippine airlines is our ONLY flag carrier anywhere or everywhere in the world, and it seem it might close shop. Who are we going to invite to fly our own kababayan in and out of the country? Cathay or Singapore airlines? Remember the famous ads of Thailand airlines? Smooth as silk...fly Thai....airlines. Before we still have ads on PAL way back in the 90's, the color of the ray of the sun in the rear end of every airplanes of PAL. That was long time ago. Now the airline industry is in the brink of collapse. What is happening to our country? It remind me also of the collapse of Swiss Air and other airlines of Europe. Is it possible that the Philippines do not have any airlines that represent its name? Come to think of it, does Burma or Laos have their own airlines? I do not think they have but they are the most primitive countries left in Southeast Asia are we following in their footsteps. God help us. So why not take our flag carrier to more routes around the world, places PAL do not go like the end of Europe or Russia, Africa or even to Alaska. The only usual route PAL have are concentrated in the Middle East and Asian countries to take Filipinos from another carriers like Saudi Air and others. I meant to expand the scope of PAL so that the pilots and crews will have more income than before. Another problem is our present condition of Airbusses which are already dilapidated or old. What do you think are your opinion in saving PAL? Thanks2one and all.

• Answer:

  If you happen to remember back in the 1990's, especially after the Asian crisis, PAL was also subjected to a similar scenario: resignations of pilots, strikes, and low number of passengers. This lead to the rehabilitation and privatization of the company. Let's review the current scenario: 1. PAL is unable to boost domestic sales even if they counter Cebu Pacific's PHP1 fare. The low fares in their main rival made Filipinos (who are especially practicing frugality), travel to nearer destinations such as HK, Singapore, Thailand, etc. 2. There isn't enough market from and to the United States. Whether it's because of the financial crisis or otherwise, let us remember why United Airlines stopped it's flight route to the Philippines. 3. They bought 19 NEW Airbuses. This was a bold and desperate move, when we all know that the ticket sales are low. Let's face it the only thing keeping our flag carrier up is its long term loans with PNB and Allied Bank. The first basic step is go again under rehabilitation. Appoint a receiver. Then pay-out first the creditors in due time. The following are my suggestions: 1. Sell some of the Airbuses. They can cut-out the loan and its interest and probably get only a small loss. 2. Concentrate on domestic flights during holidays. The other airline can't handle all of the people who want to visit the province during holidays. This will of course be the peak season. 3. Concentrate on freight services as well as the trips. Businessmen can save thousands of USD if they use PAL to act as courier for supplies, etc. 4. Limit the flight to U.S. 5. Perk up its Mabuhay Miles. The reason it is taken for graned is that it's tie-up bank (Allied Bank) dropped below the 10 Commercial Banks. Why not, tie-up with other banks and other merchandisers for a small fee? Just my opinion though.