PAL to embark on marketing drive, sets flights to India

By FIL C. SIONIL
August 27, 2010, 10:46pm
Manila Bulletin

Philippine Airlines (PAL) is set to embark on a marketing campaign designed to attract more passengers with an end in view of further improving its bottomline.

In an interview, PAL President and Chief Operating Officer Jaime J. Bautista said the flag carrier will be conducting “more promotional programs that would give incentives to its riders” admitting that the Monday Quirino Grandstand hostage carnage may likely dent its revenue performance.

“It will surely affect our route. But hopefully, we will recover and that is the reason why we need to have more promotional programs by giving incentives. It will be a total package, not only affordable rates but including accommodation,” disclosed Bautista.

He believed, however, that the marketing program should be undertaken “closely with government authorities.”

Bautista also disclosed that by March of the coming year, PAL will be mounting direct flights to New Delhi at three times a week. The expansion of its regional routes, particularly in India is to cash-in on its improving economic conditions plus the fact that there are many “Indian nationals here in the Philippines,” Bautista said.

Also to be introduced are new flights to Riyadh, Saudi Arabia.

According to Bautista, the Hong Kong-People’s Republic of China market accounts for “almost 10 percent” of PAL’s total revenues. Hong Kong alone pours in 3.5 percent with mainland China accounting for around six percent.

PAL reported more than 500 tourists from Hong Hong and mainland China have cancelled their bookings with the airline in the wake of Monday’s tragic hostage incident where eight Hong Kong nationals were killed and several others injured.

Meanwhile, PAL is waiving the rebooking penalty on PAL tickets issued in Hong Kong for those intending to fly back ahead of schedule, as a result of the travel advisory issued by Hong Kong authorities. “PAL is beginning to feel the initial impact of a Hong Kong government advisory warning its residents to refrain from all travel to the Philippines,” said. Bautista.

As of Wednesday, Bautista said PAL’s Hong Kong station reported at least 558 Manila-bound bookings were cancelled. The bookings consisted of tourists from Hong Kong, Beijing, Xiamen and other points in China.

In the Philippines, Bautista said two Hong Kong and Macau bound Filipino tourists opted to change their destination in view of the current situation.

Despite the negative travel advisory, PAL continues to mount five daily flights to and from the former Crown Colony.

“We’re closely monitoring the situation and will decide soon whether we will maintain or reduce flights. We share the grief and understand the Hongkong people’s wrath. We are optimistic that fears of travelling to the Philippines will be temporary,” Bautista said.

He said PAL has yet to determine the financial impact of the booking cancellations at this early stage. However, he admitted that the negative travel advisories to the Philippines are not helping the flag carrier..

To date, PAL has registered about 500 ticket cancellations.

PAL said visiting Hong Kong nationals who are heeding the travel advisory will likewise not be penalized with any pertinent fees or charges when they present their tickets for rebooking or taking any earlier flight back to the former Crown Colony.