PAL reduces flights, ground crew

Flag-carrier Philippine Airlines yesterday said it would temporarily slash flight frequencies over the next two months as part of a cost-saving program that would also eliminate 2,600 jobs.

Eleven flights to Hong Kong, Bangkok, New Delhi, Macau, Singapore, Los Angeles, Vancouver, Guam, Sydney, Melbourne and Incheon would be affected from October 1, or 12 percent of the international total, a PAL statement said.

Thirty percent of local flights would be suspended as catering, ground handling and call center reservations are farmed out to third-party service providers, PAL spokesman Cielo Villaluna said.

“These measures will help alleviate the inevitable minor kinks in PAL’s service as we go though this difficult but necessary transition period.”

Villaluna said Malacañang, the Department of Labor and Employment, Department of Transportation and Communication, Manila International Airport Authority, Civil Aviation Authority of the Philippines and Philippine National Police have been informed of the airline’s temporary flight reduction and other contingency measures.

“PAL seeks the understanding of the flying public. We are grateful to the Manila International Airport Authority, the Civil Aviation Authority of the Philippines, other government agencies and PAL’s corps of volunteers for their logistical support during this period,” she added.

Normal service would resume on varying dates in October and November after the spin-off/outsourcing, Villaluna said.

The loss-making carrier earlier announced it would eliminate 2,600 ground crew posts on September 30, saving the carrier about $15 million in operating costs.

It said this would help it save the jobs of the remaining 4,000-plus staff.

The outsourcing program was the main component of PAL’s survival blueprint which was launched last year after the airline incurred losses of $312 million in the 2008-2009 fiscal year.

PAL blamed unstable fuel prices, the devastating tsunami in Japan and conflicts in key markets in the Middle East and North Africa as factors that led to the poor fiscal showing.

It said it also continues to suffer from being blacklisted by the European Union over safety concerns and because of stiff competition.

PAL has earlier said the sacked workers were guaranteed contractual jobs at any of the new service providers. But the workers said this went against fair labor practices. –Daily Tribune