Philippine Airlines faces strike, 2,600 layoffs expected in outsourcing

LOSS-MAKING Philippine Airlines (PAL) is bracing for a strike as it lays off 2,600 workers after announcing plans to outsource jobs for catering, ground handling and reservations to save US$15 million.

Philippine Airlines incurred a net loss of more than $10 million for the quarter ending in June, attributing results to rising fuel costs and a stagnant global economy.

the union is planning a strike, reports Supply Chain Digital. In response, Philippine Airlines has slowed down its flight schedule. Destinations affected are Hong Kong, Bangkok, New Delhi, Macau, Singapore, Los Angeles, Vancouver, Sydney and Melbourne. Several domestic cities will also see flight shortages.

"There will be a 30 per cent reduction in domestic flights and a 12 per cent reduction in international flights," said PAL spokeswoman Cielo Villalune, adding that the airline was looking into merging flights by using larger aircraft.