COVID-19 forces PAL to separate 300 workers, restructure business

Flag carrier Philippine Airlines (PAL) has laid off 300 workers as part of a business restructuring plan to manage losses sustained from travel restrictions to coronavirus-stricken destinations.

PAL announced Friday that PAL implemented a “voluntary separation initiative for long-serving employees and a retrenchment process,” which was completed on February 28.

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,” PAL said.

The mass lay off is part of PAL’s business restructuring initiative “to increase revenues and reduce costs.”

“The 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,” the airline 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 said.

PAL said it continues to be focused on managing the risks related to the COVID-19 situation, in the interest of public health and safety. 

“In fulfillment of its flag carrier duties, PAL has assisted in bringing home Filipinos from affected areas via recent repatriation flights from Xiamen and Tokyo,” the carrier said.

“The flag carrier will continue to take delivery of additional aircraft for regional flights, and is gearing up to launch new Cebu-Los Angeles nonstop flights and routes to Perth, Pagadian, Kota Kinabalu and Manado,” it said. — MDM, GMA News