Philippine Airlines (PAL) is laying off about 300 ground-based administrative and management personnel to stem losses partly brought on by effects of the COVID-19 (coronavirus disease).
In a February 28 statement, the airline said the business restructuring and streamlining will “strengthen the company in the wake of losses sustained in 2019, aggravated by the ongoing travel restrictions and flight suspensions to areas affected by COVID-19.”
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The lay-off was the result of a voluntary separation initiative for long-serving employees and a retrenchment process completed on February 28, the carrier added.
“Affected employees will receive appropriate separation benefits, additional trip pass privileges, and assistance in the form of career counseling and outplacement support,” it said.
PAL’s parent firm PAL Holdings, Inc. reported a bigger loss of P7.863 million in the first nine months of 2019 from the P3.287 million it lost in the same period the preceding year as it recorded a hefty loss in the third quarter of 2019.
PAL 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.
It added that it also continues to be focused on managing risks related to COVID-19 in the interest of public health and safety.
To fulfill its flag carrier duties, PAL has also assisted in bringing home Filipinos from affected areas via recent repatriation flights from Xiamen in China and Tokyo in Japan.
