Beginnings as Air Philippines (1995–1999)
Air Philippines was incorporated on February 13, 1995, with its hub at Subic Bay International Airport. Flight operations started on February 1, 1996, with a Boeing 737-200 between Subic Bay, Iloilo, and Zamboanga. In 1996, six NAMC YS-11 and four Boeing 737-200 aircraft were acquired by the company. In 1997, an additional Boeing 737-200 was acquired. In this same year, the airline carried over 675,000 passengers and over 773,000 in 1998. In September 1998, the airline was temporarily grounded by the Air Transportation Office (ATO), the forerunner to the Civil Aviation Authority of the Philippines (CAAP) in 2004, Air Philippines retiring their Boeing 737-300s and they were now scrapped and stored.[8]
Lucio Tan Group takeover (1999–2008)
It was in 1999 that the Lucio Tan Group took over management of the airline. In March 1999, Air Philippines was granted approval to operate international services to Hong Kong, Japan, South Korea, Taiwan, and the USA. In May 2001, two Boeing 737-300 aircraft were delivered to the airline. In mid 2002, charter flights were started from Subic Bay and Laoag to Hong Kong. Passenger numbers carried rose to nearly 881,000 in 2002. In July 2004, charter flights from Subic Bay to Guangzhou were launched. In 2004 Air Philippines retired their Boeing 737-300s and they were stored in Naia Terminal on November 30, 2004, and no longer operated.[9]
Air Philippines significantly increased ties with Philippine Airlines (PAL), including the merging of frequent flier plans, timetables, and ticket sales and subsequently transferred its operations to the larger Terminal 2 of Ninoy Aquino International Airport from the smaller Terminal 4 to join Philippine Airlines. Some of PAL's major stock owners are also owners of Air Philippines. Air Philippines officially ceased to be part of Philippine Airlines' frequent flier program, "Mabuhay Miles", on October 1, 2007.[10] Air Philippines has said that they chose to back out of the Mabuhay Miles program to benefit their passengers, so rather than flying numerous flights to gain miles and wait to a certain point to receive bonuses, passengers can benefit with lower fares and more discounts with quicker bonuses, much more like today's modern-day low-cost airline.
PAL Express launch (2008–2010)
On April 10, 2008, Philippine Airlines announced an order for aircraft for the PAL Express fleet. It consisted of aircraft from the Bombardier Q family, including three from the Q300 series and six from the Q400 series, manufactured by Bombardier Aerospace in a deal valued at $150 million.[11] PAL announced on April 13 that the new fleet would be based mainly in Cebu to serve regional routes, while flights from Manila would also be launched.[9]
PAL Express was unveiled on April 14, 2008. The airline primarily flies intra-regional routes from its Cebu hub to the Visayas and Mindanao islands, as well as secondary routes to smaller airports in island provinces that are not able to accommodate PAL's mainline jet aircraft.[10] On May 5, 2008, PAL Express began operations by launching flights to Caticlan. The airline then announced that it would serve 22 inter-island routes, including some provincial points that lacked air service. Flights out of Cebu commenced on May 19, 2008.[12] After Air Philippines ceased operations in 2009, they transferred all their flights to PAL Express.
Airphil Express rebranding (2010–2012)
Air Philippines was rebranded as Airphil Express on March 28, 2010. The airline restored jet service to Iloilo, Bacolod, Puerto Princesa and Cagayan de Oro, utilizing Airbus A320 family aircraft. The airline subsequently operated eight Bombardier Q300 and Q400 turboprop aircraft and two Airbus A320s, all of which were former Philippine Airlines aircraft.[14]
On the day of the re-launch, the airline announced the acquisition of 20 A320s.[14] In January and early February 2012, GE Capital Aviation Services Limited (GECAS) announced the delivery of three new Airbus A320 aircraft to Airphil Express to help the carrier expand its fleet.[15]
During its time, Airphil Express was regarded as the fastest-growing low-cost airline in the Philippines. In 2011, it had a 19% market share in the Philippine aviation market.[16]
PAL Express revival (2013–present)
In August 2012, Philippine Airlines announced the rebranding of Airphil Express as PAL Express.[17] The rebranding took effect on March 15, 2013, while maintaining its business name as Air Philippines Corporation.[6][4]
PAL Express began carrying the brand name Philippine Airlines through a cooperative agreement with PAL. This strategy is intended to harmonize the two carriers in order to make them more competitive, ensure leadership and superior core services, and enhance the efficiency and profitability of both carriers.[4] As PAL continued to expand its code-sharing agreement with PAL Express, PAL transferred most of its domestic flights to PAL Express by August 1, 2013.[18]
In 2016, the airline signed a letter of intent with Bombardier for orders of up to 12 Bombardier Dash 8-Q400 aircraft in a two-class 86-seat configuration.
