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PAL to Let Go of 2,700 Employees as Part of Recovery Plan

Thirty-five percent of PAL employees will be affected by the retrenchment program.

It is undeniable that many have been hugely affected by the COVID-19 pandemic. Jobs lost, businesses closed, people going even hungrier—these are just a few of the effects of the health crisis. Even big and long-established companies could not avoid the impact of COVID-19.

One of the industries that are greatly affected by the pandemic is the aviation industry. We have heard of flights being canceled, rebooked, and postponed because of restrictions brought about by the pandemic. Many customers, who have been looking forward to their trips this year, have also expressed their disappointment in the cancellations and service of some airlines. (Read: Malaysia Imposes Travel Ban on PH Due to Rising COVID-19 Cases)

Apart from this, airline employees have also reported having to deal with internal issues. Some of these include planning how the company will keep its head above water while coping with the losses during the health crisis, and how they could provide service smoothly despite being forced to cut a chunk of their employees.

Philippine Airlines is committed to fulfill all refund obligations, and we sincerely apologize for the long processing…

Posted by Philippine Airlines on Wednesday, September 23, 2020

Laying Off Workers

One of the aviation companies that are greatly affected by the pandemic is Philippine Airlines (PAL), the flag carrier of the Philippines. Due to financial losses brought about by the flight cancellations, PAL was left with no choice but to lay off 35 percent of its workers. That’s around 2,700 PAL workers who will be losing their jobs amid the pandemic.

“At the height of the pandemic, PAL chose to implement temporary furloughs and flexible working arrangements to maintain jobs as long as possible. However, the collapse in travel demand and persistent travel restrictions on most global and domestic routes have made retrenchment inevitable, with PAL currently operating less than 15% of its normal number of daily flights after 8 months of lockdowns,” PAL said in a statement.

The retrenchment is the first stage of the airlines’ “larger restructuring and recovery plan,” and will be implemented during the fourth quarter of the year. The layoff will include voluntary and involuntary separation from the company.

AirAsia Japan Closes

AirAsia Japan confirmed that it has ceased operation as of Oct. 5 after the COVID-19 crisis compounded the carrier’s challenges in the competitive Japanese LCC market. (Photo from AirAsia Group / Aviation Week)

Another airline, in the form of AirAsia, has also felt the effects of the pandemic. Its Japan operations under AirAsia Japan will be permanently shut down in December. “The COVID-19 pandemic has left a significant and sustained adverse economic impact on businesses and economies around the world and the company has not been spared,” AirAsia Japan said.

All guests who have booked flights with AirAsia Japan will be contacted by the company regarding refunds.

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