Why Philtranco, Philippines’ oldest bus operator, is shutting down

After more than a century on Philippine roads, the country’s oldest bus operator is preparing to stop.

Philtranco Service Enterprises, Inc. will cease operations on March 30, ending 112 years of transporting millions of Filipinos. 

“For years, we have fought an uphill battle to keep our wheels turning. However, due to serious business losses. we can no longer sustain our business operations,” Philtranco president and CEO Michael Sabban said in a February 2 memorandum addressed to all of the company’s employees.

The company admitted it could no longer afford to maintain its payroll.

“We are painfully aware of the impact this has on you and your families. This decision was our absolute last resort, made only after every other alternative was exhausted,” the company said. 

In its memo, Philtranco paid tribute to the people who kept its buses running for decades.

“To our drivers and conductors: You were the heartbeat of our service and the guardians of our passengers. To our maintenance and office staff: You were the backbone that kept this complex operation alive,” Philtranco said. 

“Your professionalism in the face of these hardships has been nothing short of inspiring. We are deeply grateful for the years you gave to this journey. We wish you and your loved ones strength and the very best as you push the path ahead,” it added. 

On Tuesday evening, February 10, the company changed its Facebook profile photo to a dimmed version of the company logo.

History

Philtranco’s story began in 1914, when it was founded as the Albert Louis Ammen Transportation Company (ALATCO) by American soldier A.L. Ammen. Headquartered in Iriga, Camarines Sur, it became the first American-owned passenger bus company in the Philippines. Its initial route was from Iriga to Naga City.

During World War II, Philtranco’s site was used as a garrison by the Japanese army, which led to the temporary suspension of its public transport services. The bus company’s operations resumed in 1945 in Tabaco, Albay.

In 1949, D. Tuason Inc. acquired ALATCO, turning it into a Filipino-owned company. Expansion followed, with the acquisition of Bicol Transportation Company, Consolidated Auto Lines, and Mindoro Transportation Company in 1954, and a merger with Eastern Tayabas Bus Company in 1968.

In 1971, Lopa and Cojuangco-led Mantrade Group took over and renamed the bus company to Pantranco South Express Inc. to distinguish it from their northern counterpart, Pantranco North Express, Inc.

The company later became Philtranco Service Enterprises, Inc. in 1985.

Philtranco even has its own museum in Iriga, Camarines Sur, with a historical marker issued by the National Historical Institute in 2000. 

According to a 2000 Philippine Star report, tycoon Jose “Pepito” Alvarez acquired the majority of Philtranco.

In 2003, the company allocated P4 billion to buy additional buses, refurbish, and expand the company’s terminals. At that time, Philtranco had 349 buses.

Philtranco was also the first bus company to provide transnational routes, connecting the major islands Luzon, the Visayas, and Mindanao, Philippine Star reported. One of its routes launched in 2003 was the Manila-Caticlan-Iloilo route via RoRo (roll-on, roll-off), a trip using ferries and buses.

Philtranco said it was in support of then-president Gloria Macapagal-Arroyo’s Republic National Hi-Way program or RoRo system, an integrated network of highway and vehicular ferry routes.

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