Philippine Airlines slash 2600 jobs in hope of curtailing losses

by Alister POOLE on August 29, 2011

Philippine Airlines has announced that 2,600 jobs will be cut while it looks at restructuring its operations, in an attempt to reduce losses.

The carrier has plans to outsource jobs in important departments like catering and passenger handling through its turnaround plan.

The carrier airline staff affected by these cuts can still find employment from the firms that are contracted to provide such services.

For the first quarter of this year, Philippine Airlines reported concerning losses of $10.6m. Its president, Mr Jaime Bautista, says that the restructuring is a painful but necessary step to ensure PAL’s viability, as well as its long-term survival.

With the outsourcing, the carrier’s operating costs will increase to $15m per year. Already though, a union for employees of the airline has rejected the plan, with concerns raised over a possible strike from its members.

At present, Philippine Airlines operates 36 jets and Bautista says that the carrier has plans to add more airplanes to its fleet. In 2012, the flagship carrier is expected to receive delivery of a couple of Boeing 777-300ERs and four Airbus 320s.

This is going to allow us to expand the presence we have in our current markets through increased frequencies while introducing new destinations, especially across the Asian region, which continues to boom, he said.

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