Philippine Airlines expecting “dark clouds” ahead
Philippine Airlines stated it expects “dark clouds” ahead, following a 12% decline in 1Q2009-10 revenue, attributed to the swine flu outbreak and global financial downturn (BusinessWorld, 24-Sep-09). The carrier expects similar falls in 2Q2009/10, stating it is “facing the spectre of extremely weak passenger traffic and cargo demand amid the protracted world economic meltdown". As a result, the carrier plans to establish new initiatives to further cut costs and hopes to improve revenues through reconfigured aircraft and an upgraded website. The carrier also plans to outsource or spin-off catering, passenger handling, ramp handling and cargo handling operations from 15-Nov-09.