Philippine Airlines (PAL) is embarking on a digital transformation as a strategy to reduce costs and return to profit.
PAL said the next few months will be crucial as the new PAL management introduces major changes to the 78-year-old airline’s business strategy.
PAL president and chief operating officer Gilbert F. Santa Maria, in a presentation during a board meeting on October 4, said the flag carrier’s strategic business plan is to embark on digital transformation initiatives to ensure that the airline’s needs are met by the most ideal technology solutions.
This move, he said, is seen to pave the way for the company’s right-sizing and return to profitability.
“We will work hard to achieve the objectives of the business plan,” he said.
The flag carrier has been reporting a net loss since 2016. Last year, it reported a consolidated total comprehensive loss of P2.8 billion, 38.3% lower than its comprehensive loss of P4.6 billion in 2017.
PAL said that for the last three months, Santa Maria and Vivienne K. Tan, who is PAL executive vice president for treasury, treasurer, and chief administrative officer, have been mapping out strategies to reduce costs, enhance customer experience, and increase revenues.
Also during the meeting on October 4, Tan was appointed to the board of PAL and PAL Holdings, Inc.
“With this added responsibility, I shall continue to be focused in steering the company to profitability,” Tan said in a statement.
Following Tan’s appointment, PAL’s new board of directors is now composed of the following: Lucio C. Tan as chairman and chief executive officer; Lucio “Bong” K. Tan as vice chairman; Santa Maria; Rowena T. Chua; Atty. Florentino Herrera III; Atty. Estelito Mendoza; Carmen K. Tan; Michael G. Tan; Ryuhei Maeda; Johnip G. Cua; Justice Manuel Lazaro; Amando M. Tetangco, Jr.; Samuel C. Uy; and Gregorio T. Yu.
The resignations of senior officers Angelito Alvarez and Atty. Siegfred Mison, and board member Cirilo Noel, whom Vivienne Tan replaced, were also accepted during the meeting.