Philippines airline case study problem
Philippine Airlines Lucia Tan, the owner and Chairman of Philippine Airlines (PAR) was faced with a problem. Despite unacceptable levels of profitability, higher levels of passenger boarding for the summer of 1997 indicated that a sharp increase in staffing levels was required. Faced with this request from his management team, Mr.Tan, having heard of some effective consulting work carried out by Renoir Consulting In the Philippines, asked Renoir to conduct an assessment of his Manila operation.
World Class maintenance programs ere Implemented and small management action teams 2004 Renoir Consulting Limited staffing Original Request 494 International Domestic Actual Required 93 -4 125 639 Cargo Totals NOVO DCE COT SEEP GAUGE Thai Airways Reduced staffing requirement Better equipment utilization Better on-time performance retention 20 Catchy Pacific Key Results Better high yield fare Renter’s initial work in terminal operations was extended to cargo ; maintenance.
In addition to the direct benefits narrated, the better on-time resulted in improved high yield passenger endorsement of confidence, Renoir was asked to work at Mr.Tan’s Asia Brewery. 12101 Ground Equipment Availability Historical New Tow tugs 6182.2 Air stairs 81.790.
1 Belt conveyor 75.297.5 Lower deck conveyor 74.199.0 Shuttle bus 60.176.
3 Renter’s approach is to engage the workforce so that they understand and own the solutions to the issues.
Highly practical workshops and on the Job training and coaching result n real and significant improvements that are uniquely sustainable. The results were staggering: PAR The Assessment at Manila confirmed Mr.Tan’s gut instincts.
Proposed additional complement of over 600 staff could be reduced by over 500, provided some changes took place. Chief amongst these changes were maintenance and cargo performance improvements. Management team didn’t believe that a consulting company without any airline experience would be an effective partner but they were in for a surprise. Atheistically threw themselves into transforming the operation. % Airline competition in southeast Asia is fierce, with some of the best airlines in the world competing for market share and the high yield business travelers. Chief amongst that competition for Philippine Airlines is Singapore and Thai airlines.
Their vastly superior on time performance helped them to dominate the higher yield business market, forcing PAL to scramble for the lower end leisure and contract worker markets.
