PAL exits US bankruptcy, after US court OKs reorganization plan

Philippine Airlines has said it has emerged from bankruptcy after a US court approved its plan to slash up to $2 billion in debt and obtain additional capital.

The national carrier of the Philippines had filed for bankruptcy in the United States in September, seeking 

from creditors as it tried to survive the devastation unleashed on the airline industry by the coronavirus pandemic.

Its court-approved reorganization plan includes a $2 billion debt reduction and additional liquidity of $505 million from its main shareholder, PAL said in a statement Friday.

It also has the option to obtain up to $150 million in additional financing from new investors.

"PAL has streamlined operations with a reorganized fleet and is now better capitalized for future growth," the airline added.

Air travel in the Philippines collapsed by more than 75 percent in 2020 due to travel restrictions imposed to contain the coronavirus, according to government data.

From 60 million domestic and international passengers in 2019, traffic plunged to just over 13 million in 2020.

PAL said in September it had cancelled more than 80,000 flights, wiping out $2 billion in revenue, and let go of more than 2,000 employees.

As borders reopen and travel restrictions ease, the airline said it will resume regular flights, including to cities in mainland China and Australia.

Agence France-Presse

Irish airline Ryanair cuts up to 3,000 jobs over virus

Irish low-cost carrier Ryanair said on Friday it planned to axe 3,000 pilot and cabin crew jobs, or 15 percent of staff, with air transport paralysed by coronavirus.

Dublin-based Ryanair added in a statement that most of its flights would remain grounded until at least July and predicted it would take until summer 2022 at the earliest before passenger demand recovers.

The airline now expects to operate less than one percent of its scheduled flights in April, May and June.

"The Ryanair Airlines will shortly notify their trade unions about its restructuring and job loss program, which will commence from July 2020," the group said in a statement.

"These plans will be subject to consultation but will affect all Ryanair Airlines, and may result in the loss of up to 3,000 mainly pilot and cabin crew jobs, unpaid leave, and pay cuts of up to 20 percent, and the closure of a number of aircraft bases across Europe until traffic recovers."

The cost-cutting measures at the airline, which employs 18,000 staff worldwide, will be implemented "as a direct result of the unprecedented COVID-19 crisis", it added.

Chief Executive Michael O'Leary has meanwhile agreed to extend his 50-percent pay cut for the remainder of the financial year to March 2021.

"Today we are announcing cuts of just over 15 percent, of which we have to lose regrettably about 3,000 mainly pilots and cabin crew over the next three to four months," O'Leary told Bloomberg TV.

"That's because this year we are now facing carrying less than a 100 million passengers against an original budget of 154 million passengers... The situation is grim."

"We expect to be allowed by the European governments to go back in July or from July onwards. What we are facing now is a historic decline in air traffic in Europe for the next 12-18 months."

Agence France-Presse

Airline gives passengers free Nintendo Switches

Passengers on a Southwest Airlines flight got more than a small bottle of water when they boarded their plane.

They received a Nintendo Switch system and a download code for the digital version of the “Super Mario Maker 2” game to enjoy as they traveled from Dallas to San Diego on Wednesday, July 17. Many of the passengers were headed to Comic-Con in the California city.


Mario was on hand to greet the passengers when the flight arrived.

The gaming-themed flight highlighted Southwest’s partnership with Nintendo in the Let’s Play Getaway sweepstakes that awards a daily winner a Nintendo Switch system and a download code for the digital version.

The sweepstakes end Aug. 31 with a grand prize winner and three guests receiving roundtrip air travel. RGA

source: technology.inquirer.net

Vietnamese low cost carrier hit over anti-women PR stunt

MANILA, Philippines—A Vietnamese airline that used bikini-clad endorsers for what appeared to be a promotional PR stunt earned the ire of netizens after it made rounds online.

“The models are seen inside the cabin opening the overhead lockers, walking down the aircraft steps and waving sparklers in the images which roused an angry reaction on social networking sites,” The Daily Mail reported last week.

It was Ngoc Trinh, a popular lingerie model in Vietnam, who posted the images on Facebook. Her photo album’s caption was: “Just finished shooting promo photos for VietJet Air for 12 hours nonstop from 9:00 am to 9:00 pm.” The album was later removed.

The Daily Mail said that the photos went viral and gained negative feedbacks, “with many criticizing the airline objectifying women in using them to promote their brand.”

An executive of the airlines said the photos were taken during a trial photo shoot for VietJetAir.

“We have yet to decide if we will use these photos or not,” he told Thanh Nien News, denying that the leakage of the photos was just a “PR ploy” employed by VietJet Air,” said Vu Pham Nguyen Tung, the carrier’s development director told Thanh Nien News.

VietJetAir was not the first airline to use females in skimpy outfits for brand endorsements. Irish airline RyanAir publishes a calendar featuring half-naked cabin crew annually.

In 2012, VietJetAir was fined was fined £611 by the Civil Aviation Authority of Vietnam for having its flight crew perform a Hawaii dance in bikinis on its inauguration flight between Ho Chi Minh City and the coastal resort town of Nha Trang, the Daily Mail said.

It also used bikini dancers to celebrate the launch of Ho Chi Minh City-Singapore route last May.

source: lifestyle.inquirer.net

PAL London flights showcase of PH pride at WTM

The return of Philippine Airlines (PAL) to London starting November 4 will be the centerpiece of the country’s participation at the World Travel Market (WTM), the biggest global event for the travel industry which opens on the same day PAL arrives at the British capital.

The resumption of non-stop flights to the United Kingdom will serve as the main focus of tourism promotions by the Philippines under the Department of Tourism’s (DoT) “It’s More Fun in the Philippines” campaign at this year’s WTM to be held from Nov. 4 to 7.

PAL will share the 300-square-meter Philippine pavilion with 40 other Philippine exhibitors, including the DoT, at WTM 2013 where almost 5,000 exhibitors from 184 countries are expected to generate more than GBP1,859 million in travel industry deals.

According to Susan del Mundo of DoT’s Tourism Promotions Board, “This is the biggest Philippine participation since joining WTM back in 1980 or any travel fair worldwide. A total of 90 DoT officials led by Sec. Ramon Jimenez will be at WTM.”

Buyers and sellers from every sector of the travel industry around the world converge at WTM, London’s biggest annual travel event attracting more than 47,000 global travel professionals.

PAL President Ramon S. Ang said: “In the first six months of 2013 alone, we had more than 60,000 arrivals from Britain.  This elevated the UK to the Philippines’ top ten visitor markets for the first time – the only European nation on the list. With PAL’s new non-stop flights, we are sure those numbers will increase further.”

The DoT had predicted a 65% increase in European visitors to about 575,000 this year alone and the doubling of current arrivals to around 700,000 in the coming year.

“It is not just tourists who stand to benefit but more importantly our 664,000 Filipino *kababayans* in Europe, particularly the 250,000 living in the U.K., who will now be able to return home more often via the airline that knows them best,” Mr. Ang said.

He will lead a delegation of top PAL and government officials on the inaugural flight including the British Ambassador to the Philippines Asif Ahmad. Upon arrival at London’s Heathrow airport in the afternoon of Nov. 4, Philippine Ambassador to the UK Enrique Manalo will be welcoming the inaugural flight passengers.

From the airport, some PAL executives will proceed to the PAL booth at WTM.

The five-times-a-week service to London will use PAL’s Boeing 777-300ER aircraft which features one of the most spacious cabin equipped with modern inflight amenities.

source: lifestyle.inquirer.net

KLM is here to stay

KLM Royal Dutch Airlines is leaving no stone unturned to attract more passengers to Europe, from a growing Southeast Asian market.

It was the last airline to fly nonstop from Amsterdam to Manila, and vice versa.

How is it gearing up for a good passenger traffic to Europe? By refurbishing its fleet, its business class, among other moves.

KLM has been flying to Manila for the past 61 years. From 2004 until last year, it was the only airline offering nonstop flights between Europe and the Philippines. But because of high Philippine taxes, the airlines had to discontinue the service, said Jurriaan Stelder, KLM’s general manager for South China Sea.

It now flies from Manila to Amsterdam via Taipei, and back.

High fuel prices have also reduced the profitability of long-haul routes. Even KLM—the largest airline in Europe after it partnered with Air France in 2004—was hit hard.

The partnership between the two airlines has a network of 24 destinations and offers more than 200 weekly flights between Asia and Europe.

Low-cost carriers

However, even such a thriving partnership is affected by the growing market share of low-cost carriers.

“Today, one out of four passengers in Asia is traveling low cost,” said Stelder. “Air France KLM is cooperating where necessary with low-cost carriers like Jetstar.”

KLM, unlike Air France, still flies daily to Manila from Amsterdam, but with an intermediate stop in Taipei. It won’t abandon the route anytime soon.




It has announced moves to face stiffer competition in the growing Southeast Asian market.

With the Philippine government’s removal of the common carriers tax earlier this year, a considerable burden on the airline has been lifted, making it more attractive for KLM to grow again in the Philippines.

“Unfortunately, the current economic climate in Europe does not yet allow a return to nonstop operation within a short period,” Stelder said through e-mail. “In the meantime, KLM is on a path of increasing seat capacity on the route.”

Sense of dread  


While some European airlines are viewing the steady expansion of Middle Eastern airlines to Asia and Europe with a sense of dread, KLM is confident that its “excellent prices and competitive service” will help it prevail and maintain its position in the market.

Apart from offering reliable and efficient ground and flight operations, including excellent on-board service such as catering and in-flight entertainment, KLM has one advantage over its competitors. “We provide passengers convenient connecting possibilities to other destinations in Europe and beyond via Amsterdam’s Schipol Airport, undoubtedly one of the best airports in the world,” said Stelder.

“KLM is making it more attractive to fly to Europe by offering a free stopover in Amsterdam, he added. “This will give our customers the opportunity to visit Amsterdam and see the beauty and hospitality this historic city has to offer.”

But since most of the long-haul traveler’s time is spent airborne, KLM is beefing up and refurbishing its fleet to make flying convenient and pleasurable. Today’s travel isn’t just about getting from point A to B safely and on time. It’s now all about traveling in style—which airlines like KLM take into consideration.

It has teamed up with top Dutch designer Hella Jongerius to create a new atmosphere—from furnishings to minute flourishes—in the World Business Class.

“The new design’s guiding principle is to ensure that passengers feel at home,” said Stelder. “That involves a transition from a business-like look to greater sense of being at home. This has been achieved by using a characteristically warm color palette, more sustainable materials and by enhancing personal comfort.”

The World Business Class’ new full-flat seat can be reclined so the passenger can lie down completely to sleep. The seat and the partition between TV screens ensure greater privacy. There are also more storage compartments beside the passengers and under TV screens.

Expanding its fleet, KLM got its 12th Airbus 330-200 last April. Its arrival, said Stelder, marks another step in the airline’s thrust to modernize its fleet.

“Even in challenging times, KLM continues to invest in cleaner, quieter aircraft in its drive to guarantee customers optimal service,” he said.

“With the arrival of this latest aircraft, KLM’s A330 fleet now counts 16 aircraft: 12 Airbus A330-200s and four Airbus A330-300s.”

source: lifestyle.inquirer.net

Labor Day sale: $849 round-trip from L.A. to Peru on Lan Airlines

Typically, good sale airfares to South America start from Miami. But Lan Airlines launched a Labor Day sale on tickets to Lima, Peru, that show good savings for travelers in Los Angeles and San Francisco too. Round-trip cost for the West Coast cities is $849, but only for a limited time.

The deal: In this sale, prices for round-trip flights to Lima start at $599 from Miami, $749 from New York and $849 from L.A. and San Francisco.

When: Tickets must be purchased by 8:59 p.m. Pacific time Tuesday for departures between Oct. 1 and Nov. 30. Travel must be completed by Dec. 10.

Tested: I found availability for the sale price for nonstop flights from L.A. to Lima leaving Oct. 17 and returning Oct. 24. On Lan, you can check two bags free. In a check of comparative fares for the same dates, I found the same low price on Taca Airlines, but that requires a layover in El Salvador; nonstop flights cost more than $200 extra in my test.

Contact: Lan Airlines, (866) 435-9526

source: latimes.com