Philippine Airlines, which is owned by billionaire Lucio Tan, will slash 2,300 jobs within two months. That means, one-third of its workforce will have to be let go. These job cuts will include voluntary as well as involuntary cuts.
The drastic fall in demand for air travel has taken a toll on the airlines across the globe. Philippine Air is operating less than 30 per cent of pre-pandemic flights in a week.
The Airline had resorted to furloughs as well as flexible work arrangements earlier. However, w.e.f March, it has been trying to put a check on capital expenditure, reduce salaries, cut down on expenses and defer lease payments.
The parent company, PAL Holdings, has incurred a net loss of about $164.8 million in the third quarter alone.
Meanwhile, in Canada, Sunwing Airlines and Sunwing Vacations have been given a $ 375 million Large Employer Emergency Credit (CUGE) loan, which they will use to protect jobs. These loans are available to large employers in Canada who are unable to obtain finance from other sources to meet the needs of running their organisations.
The two entitites together have a workforce strength of almost 3,000 on the rolls. The Canada Emergency Business Financing Corporation (CFUEC) is trying to provide financial assistance to these airlines to stay afloat.