The flag carrier of the Philippines, Philippine Airlines has announced that it is implementing a “company-wide reduction program,” where it plans to cut around 2,300 employees from its current workforce. The carrier also confirmed that these cuts will include voluntary leave and involuntary firings. Since the beginning of the COVID-19 pandemic in March 2020, Philippine Airlines has reduced management salaries and even suspended capital expenditure. The flag carrier added that it has also deferred aircraft lease payments and “slashed non-essential expenses.”

Up until this point, Philippine Airlines were using flexible working arrangements as well as temporary furloughs in an effort “to hold off job cuts as long as possible.” This allowed the airline to continue paying its employees their salaries, particularly their medical benefits during the height of the COVID-19 pandemic. Unfortunately almost one year on, air travel demand is returning a lot slower than expected. As a result, Philippine Airlines currently continues to operate at less than 30 per cent of its normal pre-pandemic number of weekly flights.

In a statement seen by AeroNewsX, the President of Philippine Airlines, Gilbert F. Santa Maria said, “This has been an extremely difficult and painful decision. For our colleagues who are leaving, rest assured that we are committed to support you through this transition. We extend to you our deepest gratitude for your years of hard work and dedicated service, and we will always cherish the ties you have established with the PAL family.”

With a much lower demand for air travel and travel restrictions across the world including the Philippines, the carrier has been left with no other option but to cut its staffing levels. Prior to making the decision about cutting jobs, the carrier said that it carried out a “comprehensive system-wide review,” but found that it was the only way to cut costs and aid the airline’s recovery. Philippine Airlines said that all affected employees will remain at the company until mid-March 2021 and will continue to receive their salaries and medical benefits until the effective date of separation.

Phillippine Airlines added that it would continue to offer special repatriation flights for stranded citizens in Europe, the Middle East, North America and Asia. In addition to provided scheduled passenger operations, the flag carrier confirmed that it will also continue to operate its “all-cargo services,” which its says will allow the airline “to meet the needs of the public and support economic supply chains,” including the transportation of COVID-19 vaccines when the arrive to the Philippines.

Source: https://aeronewsx.com/philippine-airlines-to-cut-30-of-workforce/?utm_source=rss&utm_medium=rss&utm_campaign=philippine-airlines-to-cut-30-of-workforce