CHAPTER 1

THE PROBLEM AND A REVIEW OF RELATED LITERATURE

I.

Introduction
The founder and CEO of Buzzcar, the founder of Meadow Networks, co-founder

and former CEO of Zipcar Robin Chase once said, Transportation is the center of the
world. It is the glue of our daily lives. When it goes well, we dont see it. When it goes
wrong, it negatively colors our day, makes us feel angry and impotent, curtails our
possibilities. There are normal modes of transport that we are usually using like the
transportation in the air, water and on land. It is easier and faster to travel to different
places because of the transportation that we have.
Transportation plays the important role in our day to day living. As defined by the
Merriam Webster dictionary, transportation is a system for moving passengers or goods
from one place to another. In our economy transportation is very significant because it
helps the products to deliver to different places. There is a trading that happen between
the consumer of the product and the seller of the product that can help for the economic
growth of our country. Through the use of transport infrastructure there is a connection
from one country to another which includes the airways and also the ports that they are
using for the passengers and freight inside the country or in abroad.
An airline is a company that provides air transport services for travelling passengers and
freight. Airlines lease or own their aircraft with which to supply these services. An airline may
form partnerships or alliances with other airlines for mutual benefit. An airline companies are
recognized with an air operating certificate or license issued by a governmental aviation body.

"Flight is possible to man.[and] I feel that it will soon cost me an increased

amount of money if not my life". - Wilbur Wright Co-Inventor of the first engine
airplane. On December 17 1903, Orville Wright and Wilbur Wright were the brothers
who first invented the airplane. They requested for the patent application for a flying
machine after nine months that they have tried their first successful flight.
Philippine Airlines, Inc (PAL) was taken from the name of our country
Philippines. It is the first commercial airline in Asia and the oldest that airline that
operating until now. It was founded on Feb 26, 1941 the businessmen led by Andres
Soriano who was one of the successful businessman by that time and he was the general
manager and former Senator Ramon Fernandez was the chairman and the president. The
first flight of the airline was took place on March 15, 1941 between Manila and Baguio
but it was interrupted because of the World War II.
According to the company website of PAL, Philippine Airlines was known who
has a high standard quality of employees. They have well trained flight attendants, pilots
who mastered the flying skills and the ground staff who undergo from the training
programs of PAL. Their original trainings it was offered for four different types of
training for their PAL employees from the different Departments like Flight Operators,
Inflight Services, Maintenance and Engineering and PAL Development Center.
Philippine Airlines (PAL) was owned by Lucio Tan. PAL owns 30 Airbus aircraft
and four Bombardier airplanes. It offers flights to India and China both worlds fastestgrowing travel markets. Their services include first, business and economy classes.
This research paper is focused in the accounting information system of Philippine
Airlines. Its objective is to study the airline company on how they operate. It contains the

company profile, the strength and weakness, the organizational chart, its financial
information system such as the different cycles, transaction processing and reporting and
the researchers summary and conclusion.