Philippine Airlines (PAL), Philippine's flag carrier, is founded by a Philippines leading industrialist, Andres Soriano in Feb 1941. It started operations with a single Beech Model 18 aircraft making one flight daily between Manila and Baguio.

September 1941 is a very important month for PAL, because the Philippines Government invests PAL since then, thus paving the way for the airline's nationalization.

PAL service was severely affected in WW2, and it resumed service to 15 domestic points only since Feb 1946 with 5 DC-3.

In July 1946 a chartered PAL DC-4 ferried 40 American servicemen to California, making PAL the first Asian airline to cross the Pacific. On the contrary Cathay Pacific, which is founded since 1946, started trans-Pacific service as late as early 1980's to Los Angeles.

In December 1946 PAL started regular service between Manila and San Francisco, again making PAL the first Asian airline having scheduled flights to North America.

PAL entered the jet age in Jun 1962 with the introduction of DC-8 jetliners. This is very early for Asian airlines except those of Communist countries like China, because many airlines, like Cathay Pacific, did not have any jets until early 1970's.

In January 1965 Government relinquished control of PAL. Benigno Toda, Jr., board chairman since 1962, acquires majority stake in the airline. This
makes PAL the first South East Asian flag carrier not under the control of the state except Cathay Pacific, which has no shares held by the government until 1997.

PAL advanced into the widebody era in Jul 1974 with the acquisition of its first DC-10, again the first South East Asian airline to enter widebody era.

In November 1977 the Government reassured control of PAL with Government Service Insurance System holding majority shares. This is very rare among formerly state-owned airlines in the world, as most governments do not reassure control on their flag carriers after privatization.

In July 1979 Boeing 727 trijet joined the PAL fleet. This is very strange, as most airlines in the world introduce widebody jets after Boeing B727.

In November 1982 PAL commences flights to Paris from Manila and Zurich. Strangely it does not have European service recently.

In January 1992 the Government privatized PAL. PR Holdings acquires 67% stake while the state holds 33%. But the airline is still heavily losing between 1994 and 1999.

PAL had its first A340-300 delivered in May 1997. This and the delivery of A320 & A330-300 as well as retirement of old jets makes Philippine Airlines East Asia flag carrier earliest to change to full Airbus fleet after retirement of B747-400 and possible introduction of A340-600 (All-Airbus Dragonair is not a flag carrier and is only a regional carrier of Hong Kong.)

In May 2000 PAL declared a net income of P44.2 million for the fiscal year ended March 31, 2000. The result snaps six straight years of massive net losses and produces one of the most dramatic turnarounds in the history of Philippine business.

In March 2001 PAL reported a profit of P419 million at the end of the second year under Rehabilitation. PAL was able to pump up revenues, ride out expenses and take advantage of efficiencies during a difficult year for the aviation industry. PAL resumed services to Sydney, Busan, Taipei and Jakarta expanding network to 16 points in nine countries.

In April 2001 Philippine Airlines returned to Canada after an absence of three years when it starts a direct service between Manila and Vancouver, British Columbia on April 3, 2001. But there are only 3 weekly departures, compared to 14 Hong Kong - Vancouver direct flights operated by Air Canada & Cathay Pacific respectively, totalling 4 daily flights.