Following a US$301.4 million loss for its fiscal
year ended March 31, 2009, Philippine Airlines has confirmed it
will take decisive steps like rationalizing its
workforce, realigning operations to match demand and other
cost-cutting measures to survive the crisis currently plaguing
The airline management will offer early retirement
packages for its employees as one way of enhancing productivity and
“Extraordinary times call for
extraordinary measures,” PAL president and chief operating
officer, Jaime J. Bautista said, noting that PAL – as a
global business – shares the same predicament as other
airlines severely hit by the slowdown in passenger traffic.
“We are currently reviewing our entire organizational set-up.
We want to make PAL lean and mean so it will be agile and flexible
enough to adapt to the new economic climate. Clearly, the crisis
has changed the face of the airline industry which is among the
sectors hardest hit by the recession,” Bautista added.
have approved a quasi-reorganization plan, reducing the par value of
PAL shares to P0.20 from P0.80 per share. The airline will also increase
its authorized capital stock from P16 billion to P20 billion
divided into 100 billion shares at P0.20 per share.
annual report showed an increase in revenues to US$1.634 billion,
from US$1.504 billion the previous year, after carrying 17% more
passengers due to acquisition of additional aircraft and growth in
the domestic market.
However, the cost of operating more
flights, which involved higher maintenance expense and compounded
by record-high fuel prices, raised expenses to US$1.9 billion,
from US$1.539 billion the previous year. Fuel comprised 44% of
PAL's operating expenses.
In the latter part of the year, PAL’s passenger load
factor fell to an average of 76.2%, three points lower than the
PAL also reported paying US$165.4 million
in principal and interest to its creditors, bringing to US$2.4
billion the total paid from March 1999 to March 2009. Total assets
decreased by US$60.6 million to US$1.971 billion, while total
liabilities rose by US$239.5 million over the previous year.
“We must stress, however, that our
cost-cutting measures will in no way infringe on our
safety compliance and standards. We are eyeing new
destinations either through charters or regular
scheduled operations. We also expect to take delivery of
our brand new and fuel-efficient Boeing 777-300ERs and
we are in the final stages of refurbishing our current
fleet of wide-bodied aircraft to feature a bi-class
configuration, new seats and state-of-the-art
entertainment systems. All these are being done to
better serve our customers,” Bautista said.
See other recent news regarding: