MANILA, Philippines (Xinhua) -- Flag carrier Philippine Airlines ( PAL) expects to end 2010 with a profit, ending two years in the red, as the global recovery boosts demand for air travel.
"The outlook for PAL this year is that we will post a profit, but that will happen only if we can successfully implement the programs in our survival plan," PAL President and Chief Operating Officer Jaime J. Bautista said today.
PAL's survival plan is a set of measures intended to help the company cut costs and improve revenues. This was formulated after PAL lost over $300 million in the last two years.
These measures include a more aggressive marketing program and outsourcing non-core services such as in-flight catering.
Bautista said outsourcing may attract outside investors that will help in revitalizing the airline.
Filipino-Chinese businessman Lucio Tan, who owns around 90 percent of PAL, is keen on growing its budget carrier Air Philippines. He just invested $250 million to expand Air Philippines.
"(Tan) would also like to be active in the low-cost airline industry. The growth in domestic travel and short regional flights is going to be with low-cost airlines," Bautista said.
Investors are also waiting for the resolution of PAL's current dispute with its 1,600 flight attendants, who have threatened to go on strike to protest the airline's policy of retiring aircraft crew at the age of 40.
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