1. Business Profile
PAL Holdings, Inc., (the Company), was incorporated in 1930 as “Baguio Gold Mining Company”. In
1996, the Securities and Exchange Commission approved the change in the Company’s name to
“Baguio Gold Holdings Corporation” and the change in its primary purpose to that of a holding
company.
On May 30, 1997, the stockholders approved the increase in the Company’s authorized capital stock
from 200 million common shares to 4 billion common shares both at P1 par value per share. On April
13, 1998, the stockholders amended the increase in the Company’s authorized capital stock from 4
billion common shares to 2.8 billion common shares and 1.2 billion preferred shares both at P1 par
value per share. On August 30, 1999, the stockholders further amended the authorized capital stock
from 2.8 billion common shares and 1.2 billion preferred shares to 400 million common shares at P1
par value per share this was approved by the SEC on October 2, 2000.
On July 26, 2006 and September 19, 2006, the Board of Directors (BOD) approved the increase in
authorized capital stock of the Company from P400 million divided into 400 million common shares
with a par value of P1 per share to P 20 billion divided into 20 billion common shares.
On August 17, 2006, the Board of Directors (BOD) approved the acquisition of the following holding
companies which collectively control 84.67% of Philippine Airlines, Inc. ( PAL); PAL Holdings, Inc.,
Cube Factor Holdings, Inc., Ascot Holdings, Incorporated., Sierra Holdings & Equities, Inc., Network
Holdings & Equities, Inc., and Maxell Holdings Corporation.
On January 19, 2007 the Securities and Exchange Commission (SEC) approved the increase in
authorized capital stock and change in corporate name of Baguio Gold Holdings Corporation to PAL
Holdings, Inc. The Company then filed a listing application on January 25, 2007 pursuant to the
debt-to-equity conversion agreement between the Company and Trustmark Holdings Corporation.
On August 13,2007, the Company acquired directly from the Six Holding Companies 8,823,640,223
shares in PAL which is equivalent to 81.6% of the issued and outstanding common shares in the
Airline. At the same time, it acquired from the Five Holding Companies 50,591,155 shares in PR
Holdings, Inc., equivalent to 82.3% of the outstanding shares in PR Holdings, Inc. Both acquisitions
were made by way of a dacion en pago, whereby the total acquisition price of PHP 12,550 million for
the shares in the Airline and PR Holdings, Inc. was satisfied by an equivalent reduction of the liability
owning to the Company from the Six Companies.
On August 14, 2007, the Company transferred its shares in each of the Six Holding Companies to
Trustmark Holdings Corporation.
On October 16, 2007, The Securities and Exchange Commission approved the Amended By- Laws
of the Company which consist of the deletion of outdated provisions and the inclusion of the
provisions required under the Code of Corporate Governance provided by the SEC.

2. On October 17, 2007, the Securities and Exchange Commission approved the equity restructuring of
the Company. This allowed the Company to wipe out the deficit as of March 31, 2007 amounting to
P253.73 million using the Additional Paid-In Capital amounting to P4,029.3 billion subject to the
condition that the remaining additional paid-in capital will not be used to wipe out losses that may be
incurred in the future without prior approval of the SEC.
At present, PAL's primary source of revenues comes from its flight operations through Philippine
Airlines, Inc.
PAL Foundation
Where PAL goes, progress follows.
Founded in 1992, the Philippine Airlines Foundation (PALF) is the community relations arm of Asia's
First Airline and an accredited disaster relief, crisis intervention and welfare organization.
PAL Medical Travel Grants are PALF's main program for humanitarian and social development
assistance. These enable indigent Filipinos to go for medical treatment as charity or service patients
for serious health conditions.
The PAL Foundation has a preferential option for the poorest and the weakest members of society -
the children, the differently abled and the elderly.
It is a service organization that values people over profits.
The PAL Learning Center History
Philippine Airlines has long been noted for the outstanding quality of training provided to its
employees. The professionalism of flight attendants; the masterful flying abilities of pilots; and
the frontline skills of the ground staff are some of the concrete results of PAL’s training
programs.

3. Originally, training was provided by four training units from different Departments (Flight
Operations, Inflight Services, Maintenance and Engineering, and PAL Development Center).
The units operated separately from one another and exclusively for PAL employees.
In 1980, PAL Development center started to offer Basic Air Cargo to external clients. Soon
after, other programs were offered externally to capture and satisfy the increasing market
demand for PAL’s quality training.
The company recognized the vital role of the training in making PAL competitive in the airline
industry. This, along with the company’s vision of becoming the dominant carrier in the Asian
region, led to the integration of the separate training units into a Training and Development
Department.
The birth of this Department is a crucial step taken by the flag carrier in rebuilding its service
culture. It is also a part of the ongoing total corporate restructuring program geared towards the
realization of its vision.
The Training and Development Department was formed in January 1996. It is composed of four
major training units: Corporate and Commercial Training, Inflight Service Training, Flight Deck
Crew Training, and Ground Technical Training. PAL Aviation School is also made part of the
Department. Eight months later in September, the new department formally transferred to its
new home at PAL Learning Center – a move that fittingly reflects the company’s high premium
training.
Now based on a four storey edifice sprawled on an area of 7,000 square meters at the corner of
Padre Faura and M. Adriatico streets in Ermita, Manila, PAL Training and Development
continues to breathe life into the airline’s corporate vision as well as live up to its three-pronged
commitment. This is to develop organizational learning, equip the aviation industry with the
highest form of technical skills on the ground and in flight, and build client employability.
While challenging itself to be a renowned Center for aviation learning, PAL Learning Center
carries through the formidable task of not just helping people succeed but more so, making
them “reach for the skies.”
Mission To serve as a partner in nation-building.
Vision To be the most preferredairline in Asia ...