Philippine Airlines (PAL) is beefing up its domestic services with new routes and destinations in response to the local market's gradual rebound.

Starting September 1, 2009, PAL is introducing a new Cebu-Davao and Davao-Cebu service utilizing the wide-body Airbus A330, while PAL Express will add another daily Cebu-Iloilo-Cebu flight using the 76-seater Q400 turboprop aircraft.

Surigao and Naga are also being added to the PAL Express network with daily flights to Surigao and twice a day service to Naga.

The daily Cebu-Davao service will have a routing Manila-Cebu-Davao-Manila. PR409 leaves Cebu for Davao at 6:05 a.m. The reverse route, Manila-Davao-Cebu-Manila, will have the daily PR410 depart Davao for Cebu at 6:25 a.m. The new route will link with the regular Manila-Cebu, v.v., and Manila-Davao, v.v., flights.

Meanwhile, PAL Express will start flying to Naga twice a day, leaving Manila at 7:55 a.m.(PR261) and 1:00 p.m. (PR263). Another new daily service to Surigao, PR065, departs Manila at 8:45 a.m.

A daily Cebu-Iloilo (PR380), v.v., morning service, departing Cebu at 9:15 a.m. will be added to the existing PR382 that leaves at 3:20 every afternoon.

Earlier, PAL disclosed that in the wake of its US$301.4 million loss for fiscal year ended March 31, 2009, Philippine Airlines (PAL) is slashing costs - rationalizing its workforce and realigning operations – to survive global recession.

The airline management will offer early retirement packages for its employees as part of the initiative, PAL president and chief operating officer Jaime J. Bautista announced after the annual stockholders meeting.