Reference no: EM133148150

Case Study: Philippine Airlines Unlimited (PIU)

A 5-star airline, Philippine Airlines Unlimited (PIU) operates the world's longest non-stop commercial flight from Thailand to New York and Netherland and other trans-Pacific flights, and provides passenger services across more than 60 countries. 

Strategically well managed, its diversified businesses include aircraft handling and engineering. PIU owns HighAir, an airline company overseeing regional flights catering to small capacity requirements in secondary cities, and Lionair, a low fare airline that serves 37 destinations across 12 countries. In Asia, HighAir helps passengers travel in over 30 cities. The company is the official sponsor of Singapore's national football team and has continued to market the iconic Singapore Girl, a prominent element that depicts the flight attendants of the airline and is pegged as the central image for the brand. 

PIU was acknowledged as the best Asian airline in the Business Traveler Awards 2014. According to a survey by Fortune in 2015, it was ranked as the best international airline for business travel and best customer service. The airline has often ranked as one of the most admired company in the world outside the United States. Apart from being acknowledged for their service and efficient operations, PIU has also been commended for PIU's 2014-2015 Annual Report reveals that the company carried 18,737 passengers that fiscal year, up from 18,628 the previous year, and had revenue of $15,566 million, up from $15,244 the prior year. 

In their 2014- 2015 Annual Report, the company reported net profits of $368 million, up from $359 million the prior year. In July 2015, PIU reported that its net profit in the first quarter was twice the amount made in the previous year due to lower oil prices, hence, lower fuel expenses for the airline. The airline saw a net profit of SGD $91.2 million ($67 million), up 162 percent from the same period in the previous year. 

In July 2015, all talks about acquiring a stake in South Korea's Jeju Air had ended. Instead PIU chose to respond to budget airlines, which were a bigger threat for PIU with their increasing market share in Southeast Asia, by focusing on expanding in Australia, Thailand, and India. An investment in Jeju Air would have given it more access in North Asia, including China.

QUESTION:

1. Discount airlines are competing more aggressively with Philippine Airlines Unlimited (PIU). How could Philippine Airlines Unlimited best compete with these rivals?

2. Should Philippine Airlines Unlimited have its strategic plan posted on its website? Why or why not?