Prior to the second liberalization of the Philippine airline industry in 1995, state-owned Philippine Airlines enjoyed virtual monopoly with the country's adopted policy of 'one country, one airline' imposed during President Ferdinand E. Marcos administration. The government's subsidy in the form of mail freight payments supported the Philippine Air Lines, Inc.'s massive expansion program in the '60s. In the '70s, the government ordered the absorption by Philippine Air Lines, Inc. of two other privately-owned airlines; Air Manila and Filipinas Orient Airways - to form Philippine Airlines as the single flag carrier of the Republic of the Philippines.

This list of airline

Airline

An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...

s enumerates local airlines in the Philippines which have a current Air Operator Certificate issued by the Air Transportation Office

Air Transportation Office

The Philippines' Civil Aviation Authority formerly Air Transportation Office, abbreviated as CAAP, is an agency of the Philippine government under the Department of Transportation and Communications responsible for implementing policies on civil aviation to assure safe, economic and efficient air...

.

Scheduled Commercial Airlines

SCHEDULED AIRLINE	ICAO	IATA	CALLSIGN	COMMENCED OPERATIONS	FLEET SIZE
Aero Majestic Airways Aero Majestic Airways Aero Majestic Airways, Inc. operating as Aero Majestic Airways is a passenger airline, air charter operator and aircraft maintenance provider with base of operations at Zamboanga International Airport...				2011	1
Airphil Express	GAP	2P	ORIENT PACIFIC	1996	14
Cebu Pacific Cebu Pacific Cebu Air, Inc., operating as Cebu Pacific Air, is based on the grounds of Ninoy Aquino International Airport , Pasay City, Metro Manila, the Philippines. It offers scheduled flights to both domestic and international destinations...	CEB	5J	CEBU AIR	1996	37
Philippine Airlines Philippine Airlines Philippine Airlines, Inc. operating as Philippine Airlines, is a flag carrier of the Philippines. Headquartered in the Philippine National Bank Financial Center in Pasay City, the airline was founded in 1941 and is the first and oldest commercial airline in Asia operating under its original name...	PAL	PR	PHILIPPINE	1941	46
Sky Pasada Sky Pasada Sky Pasada is an airline owned by WCC Aviation Company of the Guico family which owns the World Citi College and the World City Medical Center. Its corporate headquarters is located at the World City Medical Center in Cubao, Quezon City. The airline is primarily serving the aeronautical highway of...		SP		2010	2
South East Asian Airlines South East Asian Airlines Southeast Asian Airlines , Inc. operating as SEAir is an airline based in Pampanga, the Philippines. It operates domestic services and its main base is Ninoy Aquino International Airport, Manila, with hubs at Godofredo P. Ramos Airport, Malay, Aklan.- History :The airline was established in 1995...	SRQ	DG	SEAIR	1995	11
Spirit of Manila	MNP	SM	MANILA SKY	2010	4
Zest Airways	EZD	Z2	ZEST	1996/2008	10

Charter Airlines

CHARTER AIRLINE	ICAO	IATA	CALLSIGN	COMMENCED OPERATIONS	FLEET SIZE
Air Link International Airways Air Link International Airways Air Link International Airways is an airline based in Pasay City, Manila, Philippines. It operates charter services and a flying school. Its main base is Ninoy Aquino International Airport, Manila.- History :...					1
Corporate Air Corporate Air (Philippines) Corporate Air is an airline based in Billings, MT. It has since ceased operations in its Manila, Philippines base. It was established in 1995 and operates airbridge and feeder services between Subic and Davao City, with stops in Manila and Cebu City on behalf of FedEx. It also operates scheduled...					4
Cyclone Airways				1960
Interisland Airlines Interisland Airlines Interisland Airlines is an airline based in Ninoy Aquino International Airport in Pasay City, Manila, the Philippines. It operates domestic scheduled services and passenger and cargo domestic and international charter services. Its main base is Ninoy Aquino International Airport,...	ISN		TRI-BIRD		2
Island Aviation	SOY		SORIANO		2
Island Transvoyager Inc
Lionair (Philippines) Lionair (Philippines) Lionair, Inc., operating as Lionair, is a charter airline and a general aviation company operating in the Philippines with base operation in Pasay City. It operates charter passenger using fixed-wing and rotary winged aircrafts...
Mosphil Aero Mosphil Aero Mosphil Aero is an airline based in Makati City, Manila, Philippines. It operates domestic passenger and cargo services around the Southern Philippines, Primarily from Zamboanga International Airport....	MPI		MOSPHIL	2006	2
Pacificair Pacificair Pacific Airways Corporation operating as Pacificair is a charter airline based in Manila in the Philippines. It operates scheduled passenger flights, as well as air taxi services, and agricultural work. Its main base is Ninoy Aquino International Airport, Manila.-History:The airline was established...					4
Pacific Pearl Airways Pacific Pearl Airways Pacific Pearl Airways is an Airline Based in Subic Bay International Airport, Philippines. The airline flies from Manila, South Korea, Subic, Aklan, Cebu, Davao and Palawan...	PPM		PACIFIC PEARL	2006	2
South Phoenix Airlines South Phoenix Airlines South Phoenix Airlines is an airline operating in the Philippines. Formerly known as South Phoenix Airways, the airline ceased operating a few years ago. According to a recent article in Manila Bulletin dated 4 February 2010, South Phoenix Airlines will begin flights to Iba, Zambales...				2010	10
Subic Air
Subic Seaplane Subic Seaplane Subic Seaplane, Inc. is a non-schedule charter airline based in Subic Bay in the Philippines. It provides business, sightseeing, and emergency services...

Cargo Airlines

AIRLINE	ICAO	IATA	CALLSIGN	COMMENCED OPERATIONS	FLEET SIZE
2GO	BOI		ABAIR
Asia Overnight Express	AOT	OE	ASIA OVERNIGHT
Pacific East Asia Cargo Airlines Pacific East Asia Cargo Airlines Pacific East Asia Cargo Airlines, Inc. is a cargo airline based in the Philippines. The carrier serves domestic services from the Philippines with their Boeing 727-100 and 727-200 Freighter aircraft. The airline also has an agreement on selected routes flown by Air Philippines...	PEC	Q8	PAC-EAST CARGO		2
TransGlobal Airways TransGlobal Airways TransGlobal Airways is a cargo airline based in Diosdado Macapagal International Airport, Philippines. The airline flies from Angeles-Clark to China and Taiwan and to key points in the Philippines. The Airline has also expressed their intentions to fly passenger flights to South Korea with a fleet...	TCU		TRANSGLOBAL	2005	2

Market Share

Although, the Philippines lists many registered airline companies mostly chartered, there are only five competing commercial airlines with scheduled flights serving the domestic market. Leading among the five is Cebu Pacific which has captured 45.6 percent of the market, followed by Philippine Airlines-Airphil Express group which has flown a combined 4.9 million passengers in 2008. Next after PAL-Airphil Express group is Zest Airways which has already overtaken South East Asian Airlines.

Zest Air which is formerly Asian Spirit has been acquired by Alfredo M. Yao of the Zest-O juice drink fame. AMY Holdings which owns Zest Airways has been planning to acquire South East Asian Airlines but the Lopez-Gitsis-Dornier tandem refuses to badge Yao's offer of merger. Recently, Spirit of Manila Airlines launched purely international flights to Middle East

Middle East

The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...

 and East Asia

East Asia

East Asia or Eastern Asia is a subregion of Asia that can be defined in either geographical or cultural terms...

.

All domestic airlines of the Philippines have launch international destinations mostly Asian cities.

Order by market share:

1. Cebu Pacific
2. Philippine Airlines/Airphil Express
3. Zest Airways
4. Seair
5. Spirit of Manila Airlines (only international routes)

The other locally-registered airlines operate either domestic charter services or cargo services only.

Issues and Concerns

There are plenty of things that concerns the local airlines industry. Issues such as low pay and job security among workers in the airline industry, safety issues among local airports due to poor maintenance and obsolete equipments, lack of policy support from the government, and low budgetary priority for the modernization of domestic airports which are critical to economic activities in the regions - where the market base of various airlines depend.

• Philippine Airlines

On July 31, 2010, 25 pilots of Philippine Airlines resigned from the company for various reasons such as low pay, involuntary or forced resignation and job security. On July 22, 1998, employees of Philippine Airlines went on strike and crippled the airline until bankruptcy. The airlines was put under receivership and the government allowed it go afloat for economic reason.

• Cebu Pacific

On February 2, 1998, a flight of Cebu Pacific from Manila to Cagayan de Oro City crashed at Mount Sumagaya

Mount Sumagaya

Mount Sumagaya is a mountain on the northern part of the island of Mindanao in the Philippines. It is under the jurisdictional territory of the municipality of Claveria. It stands at a height of about 2, 248 meters high....

 in Misamis Oriental

Misamis Oriental

Misamis Oriental is a province of the Philippines located in the Northern Mindanao region. Its capital and provincial center is Cagayan de Oro City...

. Days after the incident happened, government authorities grounded all its fleet for safety concern. The disruption to economic activities, caused the government to allow Cathay Pacific

Cathay Pacific

Cathay Pacific is the flag carrier of Hong Kong, with its head office and main hub located at Hong Kong International Airport, although the airline's registered office is on the 33rd floor of One Pacific Place...

 to service the airline's routes and service its customers which Philippine Airlines could not accommodate.

See also

• List of airlines
• List of defunct airlines of the Philippines
• List of airports in the Philippines