CAGAYAN DE ORO CITY, Feb. 23, 2011—Despite the labor disputes it is currently fighting at two fronts, Philippine Airlines (PAL) officials proudly announced that the country’s official flag carrier continue to soar high against the competition.
“Despite the labor dispute, we are opening up new gateways. Our programs continue. People who are protesting are still doing their jobs. They are still very much a part of us,” said PAL spokesperson Cielo Villaluna during a press conference at posh hotel in this capital city of Northern Mindanao.
“It’s business as usual at PAL. Hindi po totoo na nag slowdown yung operation…Operations have not been stifled by the labor dispute. Our operations are normal,” she added.
Villaluna disclosed in the fiscal year from April 2009 to March 2010, PAL was able to transport “352 forms of cargoes” all over the world.
She also disclosed that for 2009 to 2010, PAL netted a “handsome profit” of US$15 million flying 9.22 million passengers in both domestic and international flights.
This just shows that “PAL is very much alive and kicking,” she stressed.
PAL management is presently locked in a dispute with the Philippine Airlines Employees Association (PALEA) before the Office of the Presidentover the retrenchment of 2,600 or one third of its total workforce of
7,400 employees.
The PAL-PALEA dispute was already decided by the Department of Labor and Employment (DOLE), which ruled in favor of the retrenchment. But President Benigno Simeon C. Aquino III has intervened in this row.
Aside from this, PAL management is also in a battle against members of the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) before the DOLE over alleged discrimination of the flight attendants’ right to equal work opportunity.
The DOLE has already ruled in this dispute in favor of FASAP but PAL management has appealed the decision.
Although the PALEA case is still under review by the Office of the President, Villaluna said PAL management has decided to go ahead in “spinning off” the three departments or units of PAL affecting 2,600 employees.
These units are catering services, ground handling and call center reservations.
“We need the spin off as part of our survival plan. Salaries and wages cut about 80 percent of our total expenses while fuel cost is only about 40% of total expenses. We have to lower overhead, we have to lower our monthly expenses because it will take in a chunk of our earnings,” she said.
However, Villaluna stressed that employees who will be affected will still be working “for PAL but under a service provider.”
“This is a global trend. This is a bitter pill to swallow,” she added.
Sky Kitchen and Sky Logistics, owned by Cebu businessman Manny Osmeña , will take over PAL’s catering services and ground handling services, respectively, disclosedJoey de Guzman, PAL vice president for corporate communications.
PAL’s call center reservations was will be taken over by ePLDT Ventus.
“We will continue with the spin off because it is part and parcel of our restructuring for our long-term survival,” he said.
De Guzman said that in fiscal year 2008-2009, PAL lost US$300 million.
“It will take PAL three years to recover what it lost in just one year. We have to plot a survival plan which calls not only for the spin off but also cost controls and restructuring of our operations. Spin off is part of
PAL’s structuring program for our long-term survival. We have to do this,” he said.
PAL’s outsourcing its catering services, ground handling services and call center reservations add to the country’s distinction as the outsourcing capital of the world. The Philippines recently dislodged India for
this distinction.
As part of its restructuring program, PAL will be going on a re-fleeting, using only 777 aircrafts for its Vancouver and New Delhi flights six times a week starting March 27, 2011.
PAL presently corner about 43% market share in its 20 domestic routes and 60% share in its 26th international routes. (Bong D. Fabe)
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