Can you believe this, that Asia has no airline of its own until just before the World War II? That was when the super powers realized the significance of their often undermined allies in the World wars and grants were given to establish airline industry in asia. In 1941, asia saw a new dawn, in the form of philippine airlines. The original team had ambitious industrialists as well as senators who formed the back bone of the government of the philippine. To date , it is also one of the few airlines with original fleet being in service for more than 6 decades. Of course, the world war II had a disastrous effect on the economy of the neonate airline. Although philippines airlines as well as the government was expecting a war and had prepared, they were not prepared for a shut down of the domestic services. The air craft was being used in the Pacific war for military use. Initially 2 of its air craft was used to pull down american jets flying to australia, they were both shot down which was the end of participation of the fleet of philippine airline in the world war.
Since the airline did not have much time in life and had accumulated a small number of air craft only, it began operation after the cessation of World War II, with service to only 15 point destinations but even that was big, in world, and the only service in asia. Like all the other airlines, the damage done to the aircraft during the world war was extensive. The repair was extremely costly and the Government did not pay for it but the industrialists who had been in the original management team. The refurbished flights took off safely from newly refurbished airports in Manila. This airport base in Manila later went on to become to the official air entrance into philippine.
This airline also holds the honor of being the first airline to go trans-Pacific. Post this flight, the philippine airlines started bearing the flag of philippine.
With time, rest of the countries in Asia started setting up their own airlines. Where this resulted in Global business increasing, this directly affected the economy of philippine airline. The loss was compensated by acquiring new fleet for new routes.
The true financial crisis came in 1997 though, also known as the year of Asian financial catastrophe. Philippine airlines would have been saved though, had they not initiated a route to new york with a touch down at Vancouver. This was a loss-guaranteed route. This resulted in the biggest loss to philippines airlines ever. The loss resulted in cutting down of the air fleet into half, with cessation of the flights to europe and eventually south west asia as well.
It made its first profit after this crisis in 2001, before nine eleven. In late august, philippine airline sold most of its shares . This miraculously saved the airline from going into another financial crisis after September 11.
Today it has a fleet of 35 flying to more than 40 destinations worldwide. It s future plans include an order of 24 new aircrafts, as well restoration of the air route to europe as well as south west asia, in 2 years time. It is one of the few airlines to have a flight simulator of its own. It even has a frequent flyer program of its own with 4 classes, called Mabuhay Miles.
Although initially it was progressing speedily, the Asian crisis affected all the asian airlines. To date philippine airlines holds divided ownership in order to be saved if another such crisis arises in future, ever.
