Taking the lead: Cebu Pacific senior management takes pay cut
Aviation Updates Philippines – In an article from Esquire Magazine Philippines, Cebu Pacific has confirmed that its senior management officials have opted to take pay cuts in a bid to cushion the financial impact of the Coronavirus Disease 2019 (COVID-19) outbreak.
Instead of retrenching jobs and cutting wages to its workers, the senior management of the Philippines' largest low-cost airline has decided to take salary cuts of as much as 10 percent, according to Esquire.
Cebu Pacific's spokesperson Charo Logarta-Lagamon, per ABS-CBN News' report, has confirmed the salary cut. However, Cebu Pacific has not released any public announcements nor has it publicly confirmed its latest action.
“[I]t’s just the right thing to do,” an airline official told Esquire.
Aside from Cebu Pacific, the senior management of Singapore Airlines has also announced that it will take payroll deductions of as much as 15 percent. Additionally, the airline has offered a voluntary 'no-pay leave scheme' for its employees to reduce costs as much as possible.
Last month, Philippine Airlines cut 300 office-based management jobs as the airline completed a business restructuring program. The flag carrier was forced to cancel most of its profit-generating flights to China, South Korea, and Hong Kong.
Airlines have been suffering from huge financial blows to its revenues as travel demand continues to drop three months after the COVID-19 emerged. Recently, Europe's largest regional airline Flybe collapsed last week after passenger demand dwindled and financial conditions remained unstable.
 |
| TAKING THE LEAD. Cebu Pacific's senior management opted to reduce its salaries by up to 10 percent to reduce costs for the airline. Photo from Cebu Pacific Air. |
Cebu Pacific's spokesperson Charo Logarta-Lagamon, per ABS-CBN News' report, has confirmed the salary cut. However, Cebu Pacific has not released any public announcements nor has it publicly confirmed its latest action.
“[I]t’s just the right thing to do,” an airline official told Esquire.
Aside from Cebu Pacific, the senior management of Singapore Airlines has also announced that it will take payroll deductions of as much as 15 percent. Additionally, the airline has offered a voluntary 'no-pay leave scheme' for its employees to reduce costs as much as possible.
Last month, Philippine Airlines cut 300 office-based management jobs as the airline completed a business restructuring program. The flag carrier was forced to cancel most of its profit-generating flights to China, South Korea, and Hong Kong.
Airlines have been suffering from huge financial blows to its revenues as travel demand continues to drop three months after the COVID-19 emerged. Recently, Europe's largest regional airline Flybe collapsed last week after passenger demand dwindled and financial conditions remained unstable.
No comments
The comments made below do not reflect the views of the blog, Aviation Updates Philippines, its authors, contributors, and the AUP community. Although we have the right to fully exercise our freedom of speech and expression, we must do it responsibly and with due regard for others. Observing proper netiquette is a must.