I recall taking a flight with Grand Air in 1998. Our terminal was located at the Philippine Village Hotel where we were picked up by a bus and transported to the apron. Grand Air was a Filipino airline established to compete with Philippine Airlines. Waiting for us was an old Boeing 737-200 which would fly us from Manila to Davao.
Allow me to share with you the story of Grand Air, an airline in the Philippines with a vision to compete against PAL by providing full services. Although it was a short-lived airline, I am happy to have had the opportunity to fly with them while they were still in operation.
This is the story of Grand Air.
History
In the mid to late 1990s, Grand International Airways, or Grand Air, was one of the newest players in the Philippine aviation industry. Established after the government deregulated the domestic aviation industry, the airline was owned by the Panlilio family, who also owned the Grand Boulevard Hotel in Roxas Boulevard, Philippine Village Hotel (Airport Hotel), and Puerto Azul, a resort hotel in Cavite.
Despite being a newcomer in the industry, Grand Air quickly made a name for itself by operating flights to various destinations in Asia. It flew to British Hong Kong, Brunei, China, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Fleet
Grand Air’s fleet consisted of five Airbus A300B4-200 and four Boeing 737-200 aircraft, which allowed the airline to cater to both domestic and international passengers. The Airbus A300B4-200 was a wide-body aircraft capable of carrying up to 266 passengers, while the Boeing 737-200 was a narrow-body aircraft that could carry up to 120 passengers.
One of the airline’s most notable routes was to Hong Kong Kai Tak, which it serviced using its Airbus A300s. The airline also had plans to expand its operations by flying to other destinations in Europe and the United States.
The fall of Grand Air
Unfortunately, Grand Air’s success was short-lived. Despite its promising start, the airline was forced to fold due to mounting debt problems with its Taiwanese creditors. The airline’s operations ceased in 1998, just a few years after its establishment.
The closure of Grand Air was a significant loss to the Philippine aviation industry, as it was one of the few airlines that offered a wide range of destinations. Its demise was also a reminder that while deregulation could open doors for new players in the industry, it could also lead to their downfall if they failed to manage their finances well.
The new landscape of the aviation industry in the Philippines
Today, the airline industry in the Philippines has undergone significant changes, with several new airlines operating in the domestic and international markets.
Grand Air was a promising airline that contributed to the growth of the Philippine aviation industry in the mid to late 1990s. Its fleet of Airbus A300B4-200 and Boeing 737-200 aircraft allowed it to cater to both domestic and international passengers, and it operated flights to various destinations in Asia. However, its debt problems with its Taiwanese creditors forced it to fold in 1998, reminding the industry that while deregulation could bring about new players, proper financial management is essential for survival.
First love never dies. I fell in love with airplanes and aviation when I was a kid. My dream was to become a pilot, but destiny led me to another path: to be an aviation digital media content creator and a small business owner. My passion for aviation inspires me to bring you quality content through my website and social accounts. Aviation is indeed in my blood and blog!
