PAL folds its wings, unable to solve labor dispute: airline's closure resonates through the region as stranded passengers boosts carriers' seat sales
Article Abstract:
Asia's oldest airline, Philippine Airlines (PAL), was forced to close operation after the airline's union failed to approve the management's offer of a 20% equity in the airline in return for the 10-year suspension of their collective bargaining rights. PAL posted a debt of $2.1 bil and losses of more than PP15 bil ($336 mil) since 1995, due to its mandate of servicing 'mercy routes', unprofitable air routes which account for 5 out of 16 domestic routes. PAL's closure opens the Philippine domestic air transportation to PAL's competitors such as Grand Air, Air Philippines and Cebu Pacific Airways. Among the three, only Cebu Pacific is in a position to immediately exploit the situation, wresting PAL's 80% share of the country's domestic air travel.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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India appears grounded amid declining air sector
Article Abstract:
Analysts do not consider India's domestic airlines as good investments. Although several carriers, including Modiluft, East West Travels & Trade and Skyline NEPC, have seen their share prices fall by 50% or more from 1995's record levels, analysts say that they are still not attractive enough to entice investors. Many of the airlines are unprofitable mainly because of the high tariffs imposed on domestic routes. In addition, the airline industry is heavily regulated.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1996
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Japan Airlines hopes chicken game will lure fliers from rivals' roost
Article Abstract:
Japan Airlines has set up new marketing strategies in an effort to capture a larger part of the domestic market. JAL dominates routes out of Japan, however, its share of the local market is only 23%, behind All Nippon Airlines' 46%. JAL is set to give 30,000 of Bainda Co.'s Tamagotchi toys ($14.30) to local passengers in the next three months. JAL is also offering a 50% mileage bonus to local frequent fliers.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1997
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