PHILIPPINE Airlines (PAL) president and COO, Jaime Bautista, said that PAL would implement spinoff plans for its non-core businesses in catering, telesales and groundhandling operations three days ahead of its October 1 deadline, in response to a surprise strike by PAL Employees Association (PALEA) that stalled operations yesterday.
The strike, which had an impact on ground operations and disrupted the flag carrier’s flights between 7.00 to 19.00, coincided with Typhoon Storm Nasat in the Philippines. As of 15.00 yesterday, the Ninoy Aquino International Airport estimated that as a combined result of the PALEA strike and typhoon, a total of 172 PAL flights and an estimated 14,000 passengers were affected.
On September 24, PAL announced contingency measures to ease transition from outsourcing. This included reducing domestic flights by 30 per cent on 14 routes and cutting international flights by 12 per cent on 11 routes.
Robert Lim Joseph, chairman of Tourism Educators and Movers TEAM Philippines and owner of the Travel Cooperative of the Philippines agency, said: “This should’ve been done earlier, more than a year ago. The outsourcing was inevitable – the market is strained, competition is strong, fuel prices account for 45-55 per cent of total cost. You cannot buy old planes or compromise on safety or security…you have to make PAL lean and mean.”
While Jeepney Tours managing director Clang Garcia expressed dismay at the plight of PAL workers, she said: “PAL secured a loan to take care of the employees’ (separation package). They’re bleeding. They’re being eaten by competition from local carriers.”
Both also expressed concern that the open skies policy was affecting PAL.
“Look at the US – they have collapsed airlines because of open skies. There should be a regulatory board that upholds safety and fair competition,” Joseph said.
Garcia also added: “Because of the open skies policy, the government should think about providing marketing funds to its flag carrier so it will be able to compete.”
