PAL suffers biggest losses in its history
Aviation Updates Philippines – The national flag carrier, Philippine Airlines, has recorded a staggering net loss of Php 10.6 billion in the year 2019 alone, according to a report from The Philippine Daily Inquirer.
The losses were worsened by the tightening business conditions as Taal volcano’s eruption and the Coronavirus Disease 2019 (COVID-19) outbreak wreaked havoc throughout late-2019 and early-2020.
Recently, PAL has retrenched 300 office-based management jobs in a bid to “save the future” of the airline. The reduction comes after the airline recently completed a business restructuring plan on Friday to turn the airline to black hopefully.
The temporary travel ban has forced PAL to cancel its key routes to China, Hong Kong, Macau, and South Korea amid the COVID-19 outbreak in the region. The COVID-19 proved to be the final blow to the struggling airline.
The Philippine Star cited PAL’s President and COO Gilbert Santa Maria saying it was a necessary move for the flag carrier to retrench 300 jobs to reduce costs and generate more revenue. Of the 300 personnel, 200 were retrenched while the other 100 “opted to retire early.”
However, PAL reassured its affected employees that they would be offered “appropriate separation benefits, additional trip pass privileges, and assistance in the form of career counseling and outplacement support.”
The airline, last week, increased its authorized capital stock from Php 13 billion to Php 30 billion. The increased share will enable PAL to “to help bolster our debt position and buy us time,” Santa Maria said.
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| SAVING THE AIRLINE. Philippine Airlines executes are struggling to turn the airline in black. Photo from Airbus. |
Recently, PAL has retrenched 300 office-based management jobs in a bid to “save the future” of the airline. The reduction comes after the airline recently completed a business restructuring plan on Friday to turn the airline to black hopefully.
The temporary travel ban has forced PAL to cancel its key routes to China, Hong Kong, Macau, and South Korea amid the COVID-19 outbreak in the region. The COVID-19 proved to be the final blow to the struggling airline.
The Philippine Star cited PAL’s President and COO Gilbert Santa Maria saying it was a necessary move for the flag carrier to retrench 300 jobs to reduce costs and generate more revenue. Of the 300 personnel, 200 were retrenched while the other 100 “opted to retire early.”
However, PAL reassured its affected employees that they would be offered “appropriate separation benefits, additional trip pass privileges, and assistance in the form of career counseling and outplacement support.”
The airline, last week, increased its authorized capital stock from Php 13 billion to Php 30 billion. The increased share will enable PAL to “to help bolster our debt position and buy us time,” Santa Maria said.
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