Jaime Bautista President of Philippine Airlines talks of the company’s troubled past.
At the end of March 1999, the company posted losses of nearly $262 million, with that being the sixth year in a row of negative financials, totalling close to $6 billion of losses in six years.
However in 1999 they broke the downwards spiral.
How?Their “Rehab plan” focused on profitable routes and concentrated on doing what they did best.
They reduced the scale of their operation (halved the number of aircraft), reduced the number of aircraft types they operate (from 20 to 5).
Cut the workforce from 13,000 to 7,000, but they kept a “people plan” to restore employee confidence in the company and never promised what they couldn’t deliver.
However, PAL’s business purpose remained the same – flying their customers to there destinations on time with there luggage.
It may sound like common sense but it clearly worked
And the proof?
In 2000, they posted a $1.2million profit – the first profits in seven years. For the next eight consecutive years, PAL have posted operating profits for each year.
In 2007 it was $140million profit. The biggest in their 66-year history.