PAL to outsource ground handling

In an effort to sustain profi tability, Philippine Airlines has announced that it will be laying off as many as 117 domestic ground crew beginning in November. In addition, the airline plans to cut costs further in other areas and limit spending in the coming year.


In an effort to sustain profi tability, Philippine Airlines has announced that it will be laying off as many as 117 domestic ground crew beginning in November. In addition, the airline plans to cut costs further in other areas and limit spending in the coming year.

Th e carrier said it will, “disengage from non-core services such as our ground-handling activities in domestic stations, which can be turned over to qualifi ed third-party service providers.”

Philippine Airlines did not specify how much it anticipates it will save as a result of the outsourcing programme.

Philippine Airlines employed 2,386 ground crew and 2,512 fl ight crew at the end of 2014. Th e carrier recently reported a net income of P5.86 billion (US$125.4 million) in the fi rst half of 2015 after withstanding increased competition, labour unrest, rising costs and a weak local currency. Th e carrier is eager to avoid returning to red ink on its balance sheet, which included nearly P15 billion in losses over the previous two years.

Th e announcement follows an earlier outsourcing programme which saw the early retirement of 2,600 personnel over the last few years from in-fl ight catering, airport services and call-centre operations which were outsourced to third-party providers.