Philippine Airlines cuts 300 jobs, blames coronavirus

Philippine national carrier Philippine Airlines (PAL) said on February 29 that it has laid off 300 ground-based and management staff out of a total of over 6,600 employees as part of a business restructuring plan to cope with losses sustained from travel restrictions to coronavirus-stricken destinations.

The airline said it completed what it called a “voluntary separation initiative for long-serving employees and a retrenchment process,” a move to “increase revenues and reduce costs.” However, the laid-off workers will receive separation benefits and assistance in the form of career counseling and outplacement support and will also retain their travel perks.

The carrier has been severely affected by travel curbs imposed by the Philippine government in an attempt to prevent the spread of the coronavirus. Measures include travel restrictions to countries and territories including China, Hong Kong, Macao and South Korea. The Philippines is also considering suspending travel to Japan.

PAL was experiencing an expanding loss in 2019. PAL Holdings, the parent company of PAL, posted a growth in total consolidated loss in the first nine months of 2019 by a whopping 139 per cent to $154.12 million over the same period of 2018.

The airline owned by Philippine tycoon Lucio Tan said that it will further step up cost-cutting efforts as it attempts to optimise its route network under the planned restructuring. It will also take on “more aggressive” efforts to reduce operational costs to raise additional revenues.

Philippine Airlines including its subsidiary PAL Express currently flies to 98 destinations in Asia-Pacific, the Middle East, North America and Europe. Its main competitors are Cebu Pacific and Philippine AirAsia.

Philippine national carrier Philippine Airlines (PAL) said on February 29 that it has laid off 300 ground-based and management staff out of a total of over 6,600 employees as part of a business restructuring plan to cope with losses sustained from travel restrictions to coronavirus-stricken destinations. The airline said it completed what it called a “voluntary separation initiative for long-serving employees and a retrenchment process,” a move to “increase revenues and reduce costs.” However, the laid-off workers will receive separation benefits and assistance in the form of career counseling and outplacement support and will also retain their travel perks. The...

Philippine national carrier Philippine Airlines (PAL) said on February 29 that it has laid off 300 ground-based and management staff out of a total of over 6,600 employees as part of a business restructuring plan to cope with losses sustained from travel restrictions to coronavirus-stricken destinations.

The airline said it completed what it called a “voluntary separation initiative for long-serving employees and a retrenchment process,” a move to “increase revenues and reduce costs.” However, the laid-off workers will receive separation benefits and assistance in the form of career counseling and outplacement support and will also retain their travel perks.

The carrier has been severely affected by travel curbs imposed by the Philippine government in an attempt to prevent the spread of the coronavirus. Measures include travel restrictions to countries and territories including China, Hong Kong, Macao and South Korea. The Philippines is also considering suspending travel to Japan.

PAL was experiencing an expanding loss in 2019. PAL Holdings, the parent company of PAL, posted a growth in total consolidated loss in the first nine months of 2019 by a whopping 139 per cent to $154.12 million over the same period of 2018.

The airline owned by Philippine tycoon Lucio Tan said that it will further step up cost-cutting efforts as it attempts to optimise its route network under the planned restructuring. It will also take on “more aggressive” efforts to reduce operational costs to raise additional revenues.

Philippine Airlines including its subsidiary PAL Express currently flies to 98 destinations in Asia-Pacific, the Middle East, North America and Europe. Its main competitors are Cebu Pacific and Philippine AirAsia.

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