The Philippine Airlines (PAL) suffered US$ 80 million in losses as initial impact of the August 23 Quirino Grandstand bloody hostage incident, lawyer Domingo Duerme, PAL vice president for Mindanao, said.
Duerme said about 500 Manila-Hong Kong and vice-versa flights were cancelled immediately after the hostage taking drama in front of the Quirino Grandstand in Manila on August 23 that left eight Hong Kongers dead as well as the Filipino hostage taker himself, disgruntled police chief inspector Rolando Mendoza.
Duerme however said the effect of the Quirino hostage bloodbath is not severely felt in Davao City, saying there are no cancellations of its Davao-Hong Kong flights and vice-versa but only moved to another dates.
He said he is confident that the situation is just temporary and will normalize in the future.
PAL in its press release said it will continue to mount regular flights to its 26 international and 21 domestic destinations despite the adverse impact of travel advisories against the Philippines following the tragic ending of the hostage drama.
Duerme said PAL still considers China as its current biggest market due to its fast economic growth amid last year’s global crisis.
Recent study showed that China overcomes Japan in terms of economic recovery, he said.
Duerme said Chinese nationals are moneyed people and spend more.
PAL’s load factor in Mindanao including Davao City is good during the first quarter of this year at 80 percent, Duerme said.
This grew to 90 percent at the height of the celebration of Kadayawan sa Dabaw Festival in Davao City in the last two weeks, Duerme said, adding that loads continue to grow even after the festivities until the August 23 hostage drama.
However, the airline is anticipating a load drip during the airline’s lean season usually between August and November, aggravated by the aftermath of the August 23 hostage drama, Duerme said.
“When you speak of Hong Kong, you are referring to entire China,” Duerme said.
Meanwhile, PAL president and chief operating officer Jaime Bautista in a press statement said PAL raked in 31.6 million US dollars income for its peak months from April to June 2010.
The figure however is lower by 3.9 million US dollars or 11 percent compared to the same period last year.
The airline is also bracing for lower income during the lean months of August to November, he said.
Bautista said while the aviation industry is showing signs of slow recovery, PAL remains focused on continuing efforts to generate more revenues and control costs.
“PAL must swallow bitter pills and handle its labor issue with utmost care to survive amidst the difficult and cut-throat operating environment,” he said.
