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  • Writer's pictureMelo Acuna

Philippine Air Lines restructures; retires hundreds

Philippine Air Lines begins restructuring; retires 300 employees

MANILA – Philippine Air Lines, the region’s first airline company and flag carrier, begun its business restructuring to increase its revenues and bring down costs.

In a statement released Friday, the company said the streamlining will strengthen the company amid losses incurred last year and further aggravated by flight cancellations due to travel restrictions to destinations affected by COVID-19.

Philippine Air Lines implemented a voluntary separation initiative for long-serving employees and a retrenchment process completed yesterday.

This resulted in the separation of about 300 ground-based administrative and management personnel.

“Affected employees will receive appropriate separation benefits, additional trip pass privileges, and assistance in the form of career counseling and outplacement support,” the statement said.

The company said other initiatives include revenue generation from an optimized route network and new ancillary products, more aggressive cost-management efforts, and investment in digital technology.

The Management said they remain focused on containing the risks related to the COVID-19 situation, “in the interest of public health and safety.” Part of its flag carrier duties, PAL said they have assisted in bringing home Filipinos from affected areas through its repatriation flights from Xiamen and Tokyo.

Meanwhile, a senior Department of Labor and Employment official said they still have to receive the notice of termination after reports of PAL’s restructuring efforts were aired in both social and traditional media outlets. (Melo M. Acuña)

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