Scribd Logo
Upload

Welcome to Scribd!

  • 45 views

    Group 1 - Act 1

    Uploaded by

    anjineth lapulapu
    Philippine Airlines is facing significant financial challenges due to debt and the impact of the COVID-19 pandemic. The airline's debt has mounted to over 35 billion pesos, and it lost 29 billion pesos from January to September 2021. To address its debt issues, Philippine Airlines plans to return some leased aircraft to reduce costs, cut jobs, and potentially sell assets. However, encouraging travel again remains difficult during the ongoing health crisis. The airline must ensure passenger safety and promote low-risk destinations to regain customer trust and bookings.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Group 1 - Act 1

    Uploaded by

    anjineth lapulapu
    45 views3 pages
    Philippine Airlines is facing significant financial challenges due to debt and the impact of the COVID-19 pandemic. The airline's debt has mounted to over 35 billion pesos, and it lost 29 billion pesos from January to September 2021. To address its debt issues, Philippine Airlines plans to return some leased aircraft to reduce costs, cut jobs, and potentially sell assets. However, encouraging travel again remains difficult during the ongoing health crisis. The airline must ensure passenger safety and promote low-risk destinations to regain customer trust and bookings.

    Original Description:

    bstm

    Original Title

    Group-1_Act-1

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Philippine Airlines is facing significant financial challenges due to debt and the impact of the COVID-19 pandemic. The airline's debt has mounted to over 35 billion pesos, and it lost 29 billion pesos from January to September 2021. To address its debt issues, Philippine Airlines plans to return some leased aircraft to reduce costs, cut jobs, and potentially sell assets. However, encouraging travel again remains difficult during the ongoing health crisis. The airline must ensure passenger safety and promote low-risk destinations to regain customer trust and bookings.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    45 views3 pages

    Group 1 - Act 1

    Uploaded by

    anjineth lapulapu
    Philippine Airlines is facing significant financial challenges due to debt and the impact of the COVID-19 pandemic. The airline's debt has mounted to over 35 billion pesos, and it lost 29 billion pesos from January to September 2021. To address its debt issues, Philippine Airlines plans to return some leased aircraft to reduce costs, cut jobs, and potentially sell assets. However, encouraging travel again remains difficult during the ongoing health crisis. The airline must ensure passenger safety and promote low-risk destinations to regain customer trust and bookings.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Group 1

    Blanca, Jericho S. Namocot, Nicole


    Badaguas, Joshua Ocampo, Rose
    Borja, Al Joshua Revidizo, Mary
    Cruz, Trixia Villamor, AndrewJake
    Lapulapu, Anjineth

    Situational Analysis: How the Philippine Airlines plans to survive as its debt mounts

    1. What are the challenges faced by Philippine airlines based on the article?

    Based on the articles here are the challenges that faced by the PAL:

    • Financial Rehabilitation
    • Seriou’s debts due to Covid19 pandemic that leads PAL to raise billions of pesos
    • Cash flow problems
    • Selling of assets to restructure finances and reduce debt
    • Returning some of 20 aircraft to reduce leasing cost
    • Cut of 2,700 jobs
    • The possible suspensions of PAL's secondary license to operate as an airline due to financial
    distress
    • If the PAL failed to meet its commitments, the court will allow creditors to take it assets that can
    lead them to bankruptcy.
    • In January to September their Net loss total cost of 29 billion and 7.9 billion same as period last
    year
    • Long term liabilities of 21. 5 billion
    • Long term debt that amounted to 35.66 billion peso and short terms debt of 11.5 billion

    2. What possible solution/s can you suggest to solve the identified challenges, assuming you
    are part of PAL’s management.

    Financial crisis during the pandemic is one of the problems faced by companies in the
    Philippines. And as part of the management, knowing that our company is one of those affected,
    had an analysis on our current situation to come up with possible solutions. We have thought of
    implementing the:
    • bootstrapping, a method where we are going to use only our existing resources such as
    personal savings, borrowing from families and friends to continue our operations. This way
    we can keep providing services and our workers won't be affected. We think it is better
    than borrowing large amount of money from banks and other creditors as it will only add to
    the pending debt.
    • Aside from that, we should also be money smart and use or resources efficiently by
    keeping a detailed financial record and managing cashflow. ensuring that the business
    operations was monitored to determine whether each area or departments have enough
    funds, if it was used efficiently and if there are any excess that can be be used in another
    department or operations.
    • We also consider building strategic partnership is a good option, negotiate with potential
    partners, constructing our goals and making it a win-win situation.
    • And the last thing we are going to do to avoid such problems from reoccurring is to learn
    from our mistakes, analyze what had happened that brought us to that situation and have
    emergency preparedness to lessen (if cannot be avoided) the impact of unexpected events
    like this.

    3. How you will encourage Filipinos to book flights and travel again despite the issues in the
    airline industry, especially during a health crisis?

    According to Rosie Spinks, published under Skift, “Promoting Tourism in the times of
    pandemic is a no-win situation which is unlikely to give or be no victory”, therefore, encouraging
    Filipinos to book flights and travel again despite airline issues may really be a serious problem,
    especially under health crisis.

    Given that the PAL (Philippine Airline) is currently suffering from debt collectors since its
    debt continues to rise, it is said that its latest action is to seek court protection from creditors. The
    resolve would be aiming to raise billions of Philippine currency by returning some 20 leased aircraft
    to reduce the leasing costs by at least $1 billion and cut some 2,700 jobs but this plan is still
    anchored/stuck since the pandemic is still existing. Therefore, the possible solution for this plan to
    work is to get PAL improves its balance sheet where PAL getting back on track would be helpful to
    achieve the plan of aiming to raise the billions.
    It is mentioned under skift that “Failing to market low-risk destinations may make a bad
    problem even worse” and since we are tasked to encourage Filipinos, we can market low-risk
    destinations and encourage Filipinos to educate own selves that destinations to be offered by PAL
    would be the less affected area and practice good behavior as well as a discipline while traveling
    in order to prevent possible risk of COVID-19.
    However, the Philippine Department of Tourism (DOT) already ensures that tourism
    stakeholders will comply with the protocols and precautionary measures set by the World Health
    Organization (WHO) and the Department of Health (DOH), The World Travel and Tourism Council
    (WTTC) has also given the Department of Tourism (DOT) a Safe Travels Stamp in recognition of
    its adoption of “health and hygiene global standardized protocols” that will ensure safe travel during
    the COVID-19 pandemic. This may encourage Filipinos to book flights despite the health crisis
    even if the destinations are not considered less affected areas”. Travels would be probably
    suspended if the chosen destination has confirmed that the pandemic is still having positive cases
    since CDC is monitoring COVID-19 risk in destinations around the world and making travel
    recommendations.
    And regarding the Airline issues in PAL, we may suggest they educate or let their
    customers know the certain crisis they have that may affect their customer service and avoid taking
    advantage of the customers’ desire to have the flight that they may offer just to aim the billions. It
    is better to inform the circumstances to their customers of beforehand rather than informing them
    late, this may really trigger customers to not put their trust in PAL anymore.

    4. How can airline companies, such as Philippine airlines, ensure the safety of their
    passengers during a flight in the time of health crisis?

    Here are the Safety protocol or practices of Philippine Airlines to ensure the safety of the passenger:
    • All cabin personnel are outfitted with full personal protective equipment to ensure their
    safety on board.
    • Clean Cabin Air The entire cabin is kept clean by hospital-grade air filtration systems that
    remove 99.99% of airborne viruses and bacteria.
    • To further enhance your sense of security, there is an optional Seat No Neighbor option.
    • COVID-19 Travel Insurance Get the best price on COVID-19 travel insurance from Allied
    bankers Insurance Corporation.
    Additionally, with additional safety measures as well, for the passengers' peace of mind.

    • Verify and adhere to the regulations for traveling to your destination.


    • Always use a face mask as an additional measure of safety, travelers may choose to put
    on face shields.
    • Regularly wash and sterilize your hands

    Reference:
    Department of Tourism, 2021. DOT receives SafeTravels Stamp from world tourism body
    https://philippines.travel/safetrip
    Rosie Spinks, 2020. Promoting Tourism in the Time of Coronavirus Is No-win.
    https://skift.com/2020/03/05/promoting-tourism-in-the-time-of-coronavirus-is-a-no-win/

    Philippine Airlines 2022. We Care about your Safety (Safety Measures).


    https://www.philippineairlines.com/en/covid-information-hub/safety-
    measures?fbclid=IwAR2jLjxMldUR81a5PAKPREInTwcytVUoIDc-aOtEdUaVShw6ARsAIuNMz7k

    You might also like