FASAP now plans to request the court order PAL to rehire any cabin crew already affected by the order and provide them with due compensation. Furthermore, PAL management expressed its desire to move discussions on the retirement age issue for the CBA. The carrier has requested the government give the airline time to find replacement pilots, as it cannot stop pilots from leaving PAL.
It said the priority is to put a closure to the previous CBA which has been under discussion for the past three years.
However, PAL now expects lower passenger numbers during its "lean season", typically between August and November. Cost cutting plans lead to labour issues Under its plans to improve its financial standing, the carrier announced plans to spin off three non-core businesses - in-flight catering services, airport services and call centre reservations operations — to reduce its workforce from 7, to 3, Mr Baustista commented that as those to be affected by retirement ages of less than 60 are still a number of years away from being effected by the issue, negotiations could be postponed.
The carrier stated the resignations were a violation of their contracts with the carrier, as well as pertinent government regulations that require resigning pilots to give PAL six months prior notice to be able to train their replacements.
Mr Bautista stated it is still complying with its rehabilitation plan, despite its failure to meet profit targets.
As he welcomed calls for more relaxed access to the Philippines, he said all airlines with existing capacity rights to Clark, Cebu, Davao and other areas should be encouraged to mount more flights to these areas to decongest Manila and promote nationwide tourism.
He added that if the carrier goes ahead with the restructure, PAL will be close to the ideal employee-per-aircraft ratio which is less than to one widebody.
It added that passenger can be transferred to any of its interline partners if strike action is launched. PAL denied the claims. Mr Bautista stated the shareholders approved plans to implement a quasi-reorganisation of the carrier last year, but PAL was unable to implement the plans as it was unable to attract new investors.
PAL warned the government that if its pilots issues continue, the local airline industry may soon collapse. The carrier attributed the loss to weak demand, particularly in the international market.
A number of tourism industry members have called on the government to help PAL resolve its labour issues. The Philippines plans to temporarily implement an open skies policy, and is in talks with foreign carriers to operate additional services to the country. PAL now plans to file appropriate charges against the pilots.
Those hired after Nov, on the other hand, will be retired by the age of 40 for both males and females. The move will allow outside investors to more easily acquire a larger voting block in the carrier.
However, the plans led to commencement of a number of labour issues for the carrier. Mr Tan meanwhile stated Philippine Airlines would not be sold by the company, despite ongoing losses. DoLE stated it is willing to immediately resolve the labour dispute between Philippine Airlines and its cabin crew, once the case is filed before the agency.
It also plans to downsize its medical, information technology and human resource units.
Under the existing CBA, male and female flight attendants who were hired before Nov would be retired once they reach 60 and 55 years old, respectively, and those hired from and beyond would be retired at age 45 for both males and females.
FY to FY Source: Pilots jump ship, flight attendants want more money The issue has sparked a number of other labour issues, including the recent resignation of a number of pilots and plans by cabin crew to launch strike action due to a lack of pay.
PAL has 19 widebody aircraft. FASAP also said a number of cabin crew have also transferred to foreign airlines, due to a lack of tenure security and labour issues.
Mr Bautista responded stating the carrier is in the process of using international standards to improve operations, including a reduction in in-flight crew numbers on trans-Pacific services. The union stated the carrier does not have sufficient bases for retrenching workers as this should only be done in the case of serious and imminent losses.Cebu Pacific implements additional security measures for flights to Guam.
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View Notes - Comparative Financial Analysis of Philippine Airlines and Cebu Pacific Airlines from ACCT - at De La Salle University %(2). MANILA - The country's largest carrier Cebu Pacific on Monday said it is now accepting applications for the second batch of cadet-pilots under its "study now, pay later scheme." The airline will recruit 16 candidates for its week Cebu Pacific Cadet Pilot Program, which includes a week aviation course in Australia.Download