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“PAL is aware of the challenges facing the airline industry. We hope to adapt and cope with the current market volatility by focusing on product improvement, asset and cost management and business efficiency.” These were the words of Philippine Airlines (PAL) president Jaime J. Bautista, issued on the sidelines of the International Air Transport Association’s (IATA) annual meeting in Kuala Lumpur, Malaysia.

It is effort to cope with the current slump in travel, the country’s flag carrier is focusing on cost efficiency and on time performance. According to Bautista, PAL’s on-time performance was better than industry standards and was a key factor in keeping existing customers loyal while attracting new ones.

Bautista said, “Improving customer service both on ground and in the air, and offering competitive and affordable rates to loyal customers and new passengers will entice them to fly more and patronize Philippine Airlines.”

The company said it would maximize the use of its capital, aircraft, and human resources as it implements an honest-to-goodness cost-cutting program and weed out unnecessary expenses to enhance its business efficiency.

Bautista added, “We are cautiously optimistic that our three-pronged strategy of focusing on contribution margin, cost efficiency and risk management will tide us over during these difficult times. Of course, we would continue to look for ways to improve our operations and controls costs without compromising passenger safety and comfort.”

Giovanni Bisignani, IATA director general and chief executive said at the start of the association’s annual meeting last Monday that he expects losses from the world’s airline which could be worse than what was forecasted this year due to the global recession.