AirPhil Express was a very fast growing airline during its time

Let’s now look back at AirPhil Express, a fast-growing low-cost airline during its time. The brand may be gone, but its operators are still around Air Philippines Corporation. They are now operating under the brand PALexpress. It is time to recall the story of a very competent low-cost airline during its time, AirPhil Express.

Remember Air Philippines? Yes, that airline which used to operate those old Boeing 737-200s way back before turning a leaf to become that orange and white cladded, fun-looking airline, AirPhil Express. You may also have remembered that 2P airline code way back.

An strong competitor of Cebu Pacific

AirPhil Express was a solid competitor of Cebu Pacific, providing ultra low-fares. Due to low airfares, many travelers benefited from the intense competition between Cebu Pacific, AirPhil Express, and Zest Air. During its prime days, AirPhil Express was gaining so much popularity. Its year-round very low fares with added inflight perks like free light snacks gave it the edge.

So who is AirPhil Express and what was their story?

The story of AirPhil Express began with Air Philippines. Air Philippines was founded in 1995 by the Gatchalian family. After sustaining successive losses, it ceased operations until investors from the LT Group, notably Philippine Airlines, bought the airline. They operated the same Boeing 737-200s and used some of PAL’s aircraft, like some of its Boeing 737-300s.

It was in 2005 when Cebu Pacific acquired the Airbus A320 aircraft and went into a full low-cost model, quickly gaining popularity.

In 2008, Air Philippines slowly ceased using its 737s due to their age and competition from Cebu Pacific, which operated brand new Airbus A320s. Air Philippines then rebranded as PAL Express as a domestic low-cost airline. The first PAL Express livery was very distinguishable due to the typeface “PAL Express” on its uniform. The airline acquired and operated Bombardier Q300 and Q400 turboprops to support its interisland domestic operations.

Due to the popularity of the low-cost carrier model in the domestic market, PAL Express needed to bring back its jet services and decided to go head-to-head with Cebu Pacific as Philippine Airlines’ budget carrier subsidiary.

The birth of AirPhil Express

After acquiring two Airbus A320 jets from Philippine Airlines, PAL Express was rebranded as AirPhil Express. With a new livery, cabin crew uniforms, and more aggressive marketing, AirPhil Express was launched in March 2010. Flights from Manila to Iloilo, Bacolod, Puerto Princesa, and Cagayan De Oro were mounted using two A320 jets.

Later, AirPhil Express acquired up to 20 Airbus A320 jets to increase capacity. Quickly, AirPhil Express gained popularity as a low-cost alternative to Cebu Pacific. Though they could never overtake Cebu Pacific in terms of domestic market share, AirPhil Express’s growth rate was increasing fast, even becoming a threat to Philippine Airlines’ domestic operations. AirPhil Express retained the IATA code of 2P used by Air Philippines from the start. In 2011, it became the fastest-growing airline in the Philippines. The rapid growth of AirPhil Express also resulted in the decline of the domestic market share of both Cebu Pacific and Philippine Airlines, which had its domestic route operations during that time.

Aside from domestic operations, AirPhil Express also began to fly to international destinations, namely Hong Kong, Singapore, Kuala Lumpur, and Sandakan. They also operated flights to Bali, Cheongju in South Korea, Guangzhou, Shenzhen, and Brunei.

From AirPhil Express back to PAL Express

In 2013, then PAL President and COO Ramon Ang decided that AirPhil Express be reverted to the PAL Express brand with the familiar “more sunrise” livery. He also moved that PAL Express handle the domestic operations of Philippine Airlines, whereas the latter concentrates on international routes except for a few domestic flights. PAL Express was then made to carry the brand “Philippine Airlines” through cooperative and codeshare agreements to harmonize both airlines further. PAL Express takes the IATA code “PR” with all flight numbers beginning with a “2”. While PAL Express carries the name Philippine Airlines, they operate as a separate corporation, Air Philippines Corp.

Today, people are more familiar with Philippine Airlines, even the PALexpress brand. The market thinks that the brands AirPhil Express, PALexpress, and Air Philippines are gone, without knowing that they are still alive. Air Philippines is indeed active, operating under the name and style of PALexpress but carrying the Philippine Airlines name. Quite confusing? Well, to people not really into airlines and air travel, it may be, but in reality, the model is simple. Air Philippines Corp is the company or corporation that operates PALexpress. “PALexpress” then is the name that Air Philippines Corp uses.

Code share agreement with Philippine Airlines

Instead of carrying the name “PALexpress”, the company entered into a codeshare and cooperative agreement with Philippine Airlines. PALexpress will use the word “Philippine Airlines”. PALexpress and Philippine Airlines also entered into a codeshare agreement. The IATA code “PR” be used in all PALexpress flights instead of “2P”. They also share the same cabin crew uniform.

Cebu Pacific’s main competitor in the domestic Philippine market is AirAsia Philippines. PALexpress decided to use a “hybrid” model, a cross between a full-service and low-cost model. Yes, somehow, PALexpress is still a competitor of Cebu Pacific, but I would say not directly. PALexpress offers business class seats and light snacks on some aircraft and flights. Cebu Pacific only uses a mono-class configuration in all its aircraft.

Why just have one brand instead of two?

So why was the AirPhil Express brand put off when it was growing quickly and was doing well? The main reason behind it was to harmonize the operations of both Philippine Airlines Inc. and Air Philippines Corp. Both airlines would complement each other for better profitability and joint branding. However, in my own personal opinion, I prefer that PALexpress still have its independent branding. This would differentiate Philippine Airlines and PALexpress. One is a full-service airline, and the other is a full-fledged low-cost carrier. Nevertheless in the end, the number crunchers of both companies know better. I trust that their decisions are a lot more sound than my judgement.

How do we determine between a Philippine Airlines and PALexpress flight? Aside from the starting “2” on the flight number of PALexpress flights, you would notice an “Operated by Air Philippines Corp” typeface on the nose of PALexpress jets.

While we must move forward and adapt to the time, especially after the covid-19 pandemic, it is nice to remember the story of AirPhil Express, a fast-growing airline during its prime days..