My take on Philippine Airlines joining one world
The heart of the Filipino taking on the world
I’ve been off sick this week and the past month has been busy with the kids and work. Nevertheless, I’ve been working on something behind the scenes which I hope I can launch at AvDOG soon. But this week my social media feed has been taken over by one airline and one alliance: Philippine Airlines and one world.
The Filipinos are one of the most passionate people I know. Sure, their country is a mess politically and economically, yet they still manage to find the joy in everyday little things. It’s no wonder Philippines Airlines’ motto is the “The Heart of the Filipino” because they sure do have heart. Even when oneworld announced that they have formally invited the airline to join the alliance, Filipinos online celebrated as if they were crowned world champions of the airline industry, a celebration second only to winning beauty pageants in the Philippines.
Some may have credited their invitation to their new president Richard Nuttall. He is the first foreigner in an executive position at PAL, but he’s no foreigner to the industry. Prior to joining PAL, he was CEO at Sri Lankan, soon to be PAL’s fellow alliance member. Nuttall was brought in to modernise PAL and develop international expansion. Having taken deliveries of new Airbus A350-1000s in December 2025, an invitation to join an alliance is just the next step in Nuttall’s strategy to bring PAL back to its former glory.
PAL has always been priced aggressively compared to its competitors in the region, especially with those wanting to travel from the US to Southeast Asia on a budget. But with increasing competition from Cebu Pacific, a leading low cost carrier in Philippines, as well as numerous low cost carriers in the region, PAL does not have much wiggle room in terms of pricing. PAL could take advantage of alliance members feeding into its domestic network as well and have some more breathing space by cooperating with premium alliance airlines such as Cathay Pacific and American Airlines.
What’s in it for oneworld though? The alliance already has some solid footing in Asia with members Cathay Pacific, Japan Airlines, Malaysia Airlines and Sri Lankan holding fort, one has to wonder can PAL really add that much footprint to the alliance? Each of the above seem to offer some form of value to oneworld as it competes against SkyTeam and Star Alliance. Cathay opens up the Chinese market which the other two alliances already have members in, Japan Airlines offer connectivity in the northern Asian region where SkyTeam will soon have mega carrier airline Korean Air and Star competes with All Nippon, Malaysia Airlines competes alone against two duos from two alliances (Star has Singapore Airlines/THAI whereas Skyteam has Garuda/Vietnam) in Southeast Asia. Sri Lankan gives passengers some access into India, not enough to dent Air India from Star but better than nothing compared to SkyTeam.
It may make some sense for oneworld to have two supporting carriers in the SEA region to complement Malaysia Airlines’ SEA portfolio of destinations. With a growing diaspora of Filipinos working abroad, oneworld may consider the first mover advantage to secure access to the Filipino domestic market with Philippine Airlines being the sole non low cost carrier in the country. But while one cannot argue against PAL’s top class hospitality, will a strong domestic Filipino network attract more passengers to the alliance? I think not.
PAL does not add much value in terms of connectivity and destinations, but it adds something that many have known the airline for: the heart of the Filipino. It brings along with it a loyal following of patriotic citizens that would want nothing more than their flag carrier excelling. While many may not have the means to enjoy the first class lounges that oneworld has to offer, the alliance opens markets previously inaccessible to the country.
And that is exactly what oneworld needs to pivot. If oneworld can market the importance of PAL to oneworld and oneworld to PAL, they will welcome a loyal following of new passengers. Filipinos are loud, like fanfare, and generally easy to please. Cooperation will be key, and if they can push the proposition that if you support oneworld, you support PAL, then it’s a win-win situation for all.
With social media being flooded with photos of the alliance invitation ceremony, the relationship is off to a good start. Bring the fanfare, bring the photos, make sure the two brands are associated with one another. This has been one of the most exciting alliance news recently and I can’t wait to see it develop.