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Philippine Airlines states profitability depends on survival plan

5-Nov-2010 8:12 AM

Philippine Airlines President and CEO Jaime Bautista stated the carrier’s plans to make its first profit in three years depends on its “survival plan”, which includes the outsourcing of 2600 jobs (Bloomberg, 04-Nov-2010). Mr Bautista declined to state how much the carrier will save from the survival plan. Staff plan to appeal the job cuts, after the country’s labour department approved the plans. Mr Bautista stated demand LCC subsidiary, Air Philippines, are “starting to gain ground” with an 80% load factor. The LCC plans to take delivery of two A32s by year end, six in 2011 and another six in 2012. It operates a fleet of four A320s.

Philippine Airlines: “We will have a small profit this year only if we can outsource our ground-handling, catering and call-center services, and get rid of 2600 employees. I am hopeful that I may be able to do this before the end of December,” Jaime Bautista, President and CEO. Source: Bloomberg, 04-Nov-2010.