Professional Documents
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Outline
Philippine Airline Industry CEB: Company Profile Major Risks Recommendation
MARKET PLAYERS The Philippines market leader Growing fast after an LCC transformation Another adopter of the LCC model Increased focus on international routes Big LCC plans following Tiger investment
Company Profile
1988
1991 1996
2005
Company Profile
Route network 50 domestic and 23 international routes 1,832 scheduled weekly flights Currently operates in 4 hubs Has 31 aircrafts in operation; targets 47 fleets by 2014 Distribution channels: internet, sales offices, call centers and third party sales outlet
Financial Highlights
2009 2010 9M 2011
Personnel risk
Medium
Low to High
Financial risk
Low
High
Business risk
High
Low to High
Recommendation
Stick to pure LCC model for long-haul operation Enter to long term contracts for fuel derivatives Increase customer loyalty through improved customer relations Offer higher salaries and better benefits to retain pilots and engineers
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