Manila Bulletin
December 20, 2010
By Samuel P. Medenilla
Philippines – The labor dispute between flag-carrier Philippine Airlines (PAL) and its cabin crew union will be resolved by the end of this week, the Department of Labor and Employment (DoLE) said.
Labor and Employment Secretary Rosalinda Baldoz made the announcement during a media conference last Friday in which she said that she will release her decision on the pending strike notice filed by the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) before Christmas.
“In the case PAL, only the issue with FASAP remains in the jurisdiction of the (labor) department. I’ve already committed myself to release the resolution before Christmas,” Baldoz said.
DoLE has earlier issued an assumption of jurisdiction last October over the said labor dispute after FASAP filed a notice of strike at DoLE’s National Conciliation and Mediation Board, where its negotiations for its new collective bargaining agreement (CBA) with the PAL management bogged down.
Among the issues that were discussed during the series of conciliation meeting in the NCMB between PAL and FASAP were economic benefits, gender issues, and retirement age.
In a previous interview, Baldoz said PAL and FASAP continuously held mediation meetings after she issued the AOJ to allow both parties to submit their position papers regarding the labor dispute.
Monday, December 20, 2010
Sunday, December 19, 2010
AirAsia launches RP unit, eyes hub in either Subic or Clark
Business World
Corporate News
December 18,2010
SOUTHEAST Asia’s budget carrier king Tony Fernandes yesterday launched a joint venture airline with Philippine businessmen, giving a jolt of competition to what he described as an underserved aviation market.
AirAsia Group Chief Executive Officer Tony Fernandes (left) shakes hands with Antonio “Tonyboy” Cojuangco, Jr., a cousin of President Benigno S. C. Aquino III, during a news conference in Makati. Southeast Asian budget carrier king Mr. Fernandes yesterday launched a joint venture airline in the Philippines, giving what he described as an underserved market a big jolt of competition. -- AFP
AirAsia Philippines, Inc. in which AirAsia will hold a 40% stake, should begin flight operations in August next year using either Clark or Subic -- two former United States military bases near Manila -- as its base, the Malaysian said.
“We do expect to be profitable straight away,” Mr. Fernandes told a press conference.
The partners have approved an authorized capital expenditure of $25 million for the joint venture.
“The amount does not include the cost of putting the terminal. We still have to compute that. Our aircraft will be leased from AirAsia Malaysia. We will have three to five 150-seater Airbus 320s to be used in the next few months,” he said.
Mr. Fernandes said internal funds would capitalize the joint venture, in which investors led by Antonio “Tonyboy” O. Cojuangco, a cousin of President Benigno S. C. Aquino III, hold a combined 60%, the minimum local equity stake set by the Constitution.
“Many of the routes that AirAsia Philippines will be going to are already being exploited by other AirAsia companies, so the setup cost for AirAsia Philippines is very low,” enabling low fares, Mr. Fernandes said.
Local competition includes successful budget carrier Cebu Pacific, which recently went public, and the loss-making flag carrier Philippine Airlines (PAL).
“Cebu Pacific has done a fantastic job,” Mr. Fernandes said, praising its equally low-cost, no-frills model but saying there was more than enough room for the AirAsia group to grow.
“I think PAL could have, I’m sure, done a better job,” he added.
Kuala Lumpur-based AirAsia has set up similar joint ventures in Thailand and Indonesia and previously announced plans to set up a unit in Vietnam.
However, Mr. Fernandes said AirAsia was now giving priority to the Philippine joint venture before proceeding with the Vietnam project.
The flashy 46-year-old tycoon, who also heads the Lotus Formula One team, said that just a tiny segment of the Philippine population of 95 million people were currently making use of air travel, giving the project huge potential.
Marianne Hontiveros, a music industry executive, will be the AirAsia Philippines chief executive, with Mr. Cojuangco as chairman.
“We need tourism badly in our country, and we have so much to offer,” Ms. Hontiveros told the press conference yesterday.
Transportation ministry Undersecretary Glicerio Sicat welcomed the airline investment as a boost to a tourism sector that is seriously falling behind its Southeast Asian neighbors due to bad infrastructure and security problems.
“As Tony Fernandes himself said, more people would be able to fly,” Mr. Sicat told reporters.
He said the government expects AirAsia to serve certain areas not adequately served by local carriers.
“He (Mr. Fernandes) said some of their routes would be pioneering.
We will improve the airport facilities, that will be our contribution,” Mr. Sicat told reporters.
The Aquino government has singled out tourism as a potential key growth driver, and had warned PAL, which is facing labor problems, to shape up or face tougher competition under an “open skies” regime that will let more foreign airlines in.
The Philippines tourism ministry hopes to double annual tourist arrivals to six million, raising annual tourism revenues to at least $4.6 billion and creating three million new jobs.
Michael L. Romero of the local port operator Harbour Centre will be the vice-chairman of AirAsia Philippines.
“AirAsia Group has been interested in putting up a hub in the Philippines for the past three years. It was only last year that we finally decided to have this joint venture,” Mr. Romero said.
“We believe in the reputation of the budget carrier as it was able to have 25 million passengers today from 100,000 passengers when it started. Carriers around the world are going to the low-cost model as it is more attractive to the passengers,” he added.
Victor Jose I. Luciano, president and chief executive officer of Clark International Airport Corp., told reporters in the same briefing the airport in Clark, Pampanga is “always ready to accommodate AirAsia Philippines.”
“We are just waiting for them to decide whether they will have their hub in Clark. But we will respect their decision if they opt to have it in Subic,” he said.
Mr. Fernandes said the company was “still weighing options” whether to choose Clark or Subic as the hub for operations.
“We will have the decision within the month. Hopefully, we can have our maiden flight by March or April next year,” he said.
Last month, AirAsia said net profit for the September quarter rose to 327.29 million ringgit ($62.89 million) from 130.07 million ringgit in the same period last year. -- AFP and Aura Marie P. Dagcutan
Corporate News
December 18,2010
SOUTHEAST Asia’s budget carrier king Tony Fernandes yesterday launched a joint venture airline with Philippine businessmen, giving a jolt of competition to what he described as an underserved aviation market.
AirAsia Group Chief Executive Officer Tony Fernandes (left) shakes hands with Antonio “Tonyboy” Cojuangco, Jr., a cousin of President Benigno S. C. Aquino III, during a news conference in Makati. Southeast Asian budget carrier king Mr. Fernandes yesterday launched a joint venture airline in the Philippines, giving what he described as an underserved market a big jolt of competition. -- AFP
AirAsia Philippines, Inc. in which AirAsia will hold a 40% stake, should begin flight operations in August next year using either Clark or Subic -- two former United States military bases near Manila -- as its base, the Malaysian said.
“We do expect to be profitable straight away,” Mr. Fernandes told a press conference.
The partners have approved an authorized capital expenditure of $25 million for the joint venture.
“The amount does not include the cost of putting the terminal. We still have to compute that. Our aircraft will be leased from AirAsia Malaysia. We will have three to five 150-seater Airbus 320s to be used in the next few months,” he said.
Mr. Fernandes said internal funds would capitalize the joint venture, in which investors led by Antonio “Tonyboy” O. Cojuangco, a cousin of President Benigno S. C. Aquino III, hold a combined 60%, the minimum local equity stake set by the Constitution.
“Many of the routes that AirAsia Philippines will be going to are already being exploited by other AirAsia companies, so the setup cost for AirAsia Philippines is very low,” enabling low fares, Mr. Fernandes said.
Local competition includes successful budget carrier Cebu Pacific, which recently went public, and the loss-making flag carrier Philippine Airlines (PAL).
“Cebu Pacific has done a fantastic job,” Mr. Fernandes said, praising its equally low-cost, no-frills model but saying there was more than enough room for the AirAsia group to grow.
“I think PAL could have, I’m sure, done a better job,” he added.
Kuala Lumpur-based AirAsia has set up similar joint ventures in Thailand and Indonesia and previously announced plans to set up a unit in Vietnam.
However, Mr. Fernandes said AirAsia was now giving priority to the Philippine joint venture before proceeding with the Vietnam project.
The flashy 46-year-old tycoon, who also heads the Lotus Formula One team, said that just a tiny segment of the Philippine population of 95 million people were currently making use of air travel, giving the project huge potential.
Marianne Hontiveros, a music industry executive, will be the AirAsia Philippines chief executive, with Mr. Cojuangco as chairman.
“We need tourism badly in our country, and we have so much to offer,” Ms. Hontiveros told the press conference yesterday.
Transportation ministry Undersecretary Glicerio Sicat welcomed the airline investment as a boost to a tourism sector that is seriously falling behind its Southeast Asian neighbors due to bad infrastructure and security problems.
“As Tony Fernandes himself said, more people would be able to fly,” Mr. Sicat told reporters.
He said the government expects AirAsia to serve certain areas not adequately served by local carriers.
“He (Mr. Fernandes) said some of their routes would be pioneering.
We will improve the airport facilities, that will be our contribution,” Mr. Sicat told reporters.
The Aquino government has singled out tourism as a potential key growth driver, and had warned PAL, which is facing labor problems, to shape up or face tougher competition under an “open skies” regime that will let more foreign airlines in.
The Philippines tourism ministry hopes to double annual tourist arrivals to six million, raising annual tourism revenues to at least $4.6 billion and creating three million new jobs.
Michael L. Romero of the local port operator Harbour Centre will be the vice-chairman of AirAsia Philippines.
“AirAsia Group has been interested in putting up a hub in the Philippines for the past three years. It was only last year that we finally decided to have this joint venture,” Mr. Romero said.
“We believe in the reputation of the budget carrier as it was able to have 25 million passengers today from 100,000 passengers when it started. Carriers around the world are going to the low-cost model as it is more attractive to the passengers,” he added.
Victor Jose I. Luciano, president and chief executive officer of Clark International Airport Corp., told reporters in the same briefing the airport in Clark, Pampanga is “always ready to accommodate AirAsia Philippines.”
“We are just waiting for them to decide whether they will have their hub in Clark. But we will respect their decision if they opt to have it in Subic,” he said.
Mr. Fernandes said the company was “still weighing options” whether to choose Clark or Subic as the hub for operations.
“We will have the decision within the month. Hopefully, we can have our maiden flight by March or April next year,” he said.
Last month, AirAsia said net profit for the September quarter rose to 327.29 million ringgit ($62.89 million) from 130.07 million ringgit in the same period last year. -- AFP and Aura Marie P. Dagcutan
Saturday, December 18, 2010
AirAsia to start PH operations in August
Manila Standard Today: Business
December 17, 2010
by Jeremiah F. de Guzman
AirAsia Inc., the airline company incorporated by Malaysia’s AirAsia International Ltd. and a group of Filipino businessmen led by Antonio Cojuangco, said Thursday it would allot $25 million for the carrier’s regional operations starting in August next year.
“The time is just right to start a new venture in the Philippines. We are committed to make this place more affordable and accessible through offering the lowest fare possible,” said AirAsia group chief executive Tony Fernandes in a press briefing.
Cojuangco was elected by the AirAsia board as chairman with former TV personality Marianne Hontiveros as president and chief executive and businessman Michael Romero as vice chairman. The three own 20 percent each of the carrier’s equity while the rest is held by Fernandes.
Fernandes said the airline would start flying to regional destinations in August using the brand name AirAsia Philippines. He said the carrier would choose between between Subic and Clark as its hub.
“Our target is to be able to decide in the next two weeks. Our only consideration in choosing the hub is the cost so we can offer low fares. We’ll go wherever we get the best deal,” Fernandes said.
He said the airline would have an initial authorized capital stock $25 million to jump-start operations. “With $25 million, it will be more than enough to make this airline profitable,” fernandez said.
“A lot of hard work has already been done. We already have the aircraft and the networks. Set-up cost for AirAsia Philippines is very low,” he said.
Diosdado Macapagal International Airport president and chief executive Victor Luciano told reporters in a separate interview that Clark was the best hub for AirAsia because its facility is bigger than that of Subic.
“We are looking at incentives. We can offer possible discounts on aeronautical fees,” he said.
Fernandes said the carrier would expand its operations by putting up hubs in Cebu or Zamboanga City once it gained ground in the local market .
Romero said the new carrier was looking to have a fleet of 15 aircraft in the next five years.
“Hopefully, we can have about five million passengers in five years,” Romero said, adding that the carrier’s target in the first year was about a million inbound and outbound passengers.
December 17, 2010
by Jeremiah F. de Guzman
AirAsia Inc., the airline company incorporated by Malaysia’s AirAsia International Ltd. and a group of Filipino businessmen led by Antonio Cojuangco, said Thursday it would allot $25 million for the carrier’s regional operations starting in August next year.
“The time is just right to start a new venture in the Philippines. We are committed to make this place more affordable and accessible through offering the lowest fare possible,” said AirAsia group chief executive Tony Fernandes in a press briefing.
Cojuangco was elected by the AirAsia board as chairman with former TV personality Marianne Hontiveros as president and chief executive and businessman Michael Romero as vice chairman. The three own 20 percent each of the carrier’s equity while the rest is held by Fernandes.
Fernandes said the airline would start flying to regional destinations in August using the brand name AirAsia Philippines. He said the carrier would choose between between Subic and Clark as its hub.
“Our target is to be able to decide in the next two weeks. Our only consideration in choosing the hub is the cost so we can offer low fares. We’ll go wherever we get the best deal,” Fernandes said.
He said the airline would have an initial authorized capital stock $25 million to jump-start operations. “With $25 million, it will be more than enough to make this airline profitable,” fernandez said.
“A lot of hard work has already been done. We already have the aircraft and the networks. Set-up cost for AirAsia Philippines is very low,” he said.
Diosdado Macapagal International Airport president and chief executive Victor Luciano told reporters in a separate interview that Clark was the best hub for AirAsia because its facility is bigger than that of Subic.
“We are looking at incentives. We can offer possible discounts on aeronautical fees,” he said.
Fernandes said the carrier would expand its operations by putting up hubs in Cebu or Zamboanga City once it gained ground in the local market .
Romero said the new carrier was looking to have a fleet of 15 aircraft in the next five years.
“Hopefully, we can have about five million passengers in five years,” Romero said, adding that the carrier’s target in the first year was about a million inbound and outbound passengers.
Friday, December 17, 2010
Local airlines face 2011 turbulence
DEMAND AND SUPPLY By Boo Chanco (The Philippine Star) Updated December 17, 2010 12:00 AM
Don’t greet airline executives a Happy New Year. They are even now wishing they could put the next year on fast forward and get it over with. Fuel prices are again on an upswing and there are some analysts who are talking $100 a barrel oil. And even as mergers and alliances are starting to have some positive impact on the bottom line, the threat of a double dip recession could nip rising passenger numbers all too soon.
Domestically, two more things are major concerns. It is certain that 2011 will bring about open skies and increased competition. Despite the usual noise against it from the usual suspects, I don’t think open skies or the “pocket” open skies version can be stopped. I understand the Aquino administration strongly believes in it and is committed to implement it as soon as it can next year.
I am not going into the pros and cons of open skies because this is one topic that had been discussed widely and for some years now. From a business perspective, the local airlines should spend more effort now planning to live with it rather than trying to stop it. The rules of the game are changing and it is take it or leave it.
Stiff competition is the other major headache in the local airline industry. The smaller airlines are beefing up their fleet and teaming up with larger foreign airlines to give the predominant players, PAL and Cebu Pacific a run for market share.
As earlier reported in this column, SEAir is leasing Airbus 320s from Singapore’s Tiger Airways and will thus be in a better position of mounting flights to key domestic destinations too. Tonyboy Cojuangco is teaming up with Air Asia’s Tony Fernandes on a new airline with a 60/40 ownership structure that will also enable it to compete in the domestic market. Zest Air is also beefing up its fleet.
We are now seeing a stiff competition among the airlines not just for passengers but for the services of trained and certified pilots. The flight operations of some of the airlines, including the established ones, may be disrupted next year as pilots are continually being poached by local and foreign competitors.
This early, the President of Philippine Airlines is warning that the domestic market may not be that big and ruinous competition may result. That is probably true. It also complicates an already difficult market for the country’s premier flag carrier.
As I had explained here in some past columns, the big problem of PAL is that it is overstaffed and cannot be as nimble as the budget carriers like Cebu Pacific. PAL has some 7000 employees compared with Cebu Pacific’s 2,500 and at least in the domestic and comparable international regional routes, Cebu Pacific had been flying more passengers already.
This is why even the Department of Labor saw the importance of allowing PAL management to do what it should to improve the competitiveness of the airline. There is no choice for PAL but to try to approximate the efficiency of Cebu Pacific and the host of new and existing budget airlines in order to survive.
The order from Malacañang for both management and labor union to hold their horses will only delay the inevitable. There is no way they can escape addressing the need to make PAL’s structure and business model more in tune with competitive requirements in today’s airline market.
The officers of the employee labor union are doing their members a great disservice by refusing to see the futility of the status quo. The employees union should learn from the example of the American automotive unions. When it became clear that GM, Ford and Chrysler would go belly up unless the unions worked with management and government to save the car companies, the United Auto Workers or UAW decided that cooperation was the better deal.
It was a painful decision for the tough American automotive union who had to give up years of hard won benefits. But the union leaders realized that if they want to truly protect the economic interest of the workers, they will have to save their respective car companies first. It is the same thing with PAL. It is crunch time and every stakeholder must decide if they want to save the airline or bury it for good.
For the Lucio Tan haters, what Lucio Tan is or is not is irrelevant. The key problem now is how to make the airline competitive. The alternative is to let the airline die and allow the new airlines to take its market share. There is something Darwinian in the capitalist system. Weak corporations should be allowed to die.
If PAL dies because it was not allowed by its staff to reorganize to meet competition, the surviving airlines will take over PAL’s market share, routes and even its planes and other assets at no cost to the taxpayers. PAL should not be considered too big to fail.
Even if it wants to, it would be extremely difficult for the government to bail out PAL now. Government has a serious fiscal deficit problem. It is also not good policy to use the money of 90 million taxpayers to save 2,500 jobs, jobs which aren’t going to be there in the long term anyway.
What happens next in PAL is also going to be an important test for the Aquino administration. Will it just do the politically expedient alternative and capitulate? Will it exercise leadership and allow the airline to reconfigure its business model to help it survive today’s new business environment?
PAL employees should learn an important lesson from the pilots who went on strike some years ago. It turned out that the pilots’ union was ill-advised and the pilots lost everything after their strike had been held illegal by the courts.
But pilots have one great thing in their favor that the ordinary airline employees don’t have. Pilots have world class skills that are in high demand in the world market. In fact, retaining and hiring enough pilots will be a major headache for the local airlines next year. What money the airlines have will be used to keep and hire the pilots first.
A PAL strike during the holidays will be a disaster for the airline… but a life changing calamity for the affected employees and their families. It would be better for them to take the million pesos or so offered and then take their chances on a new career. The union leaders are taking on the responsibility for the lives of their members and their families. For their own sakes, I hope everyone will be reasonable.
Almendras
I was disappointed to learn that the Commission on Appointments failed to act on the confirmation of Secretary Almendras because one congressman raised issues about things that happened in the energy sector in 2006 and another in 2008. Almendras was not around at that time so the only thing he could promise was to look into it and have it investigated.
In the meantime, I got this reaction from a noted economist to my column last Wednesday.
Excellent column; amen on everything you said about Sec Almendras. I am especially glad to read that Secretary Rene appreciates the pitfalls of premature embrace of expensive Renewable Energy technology (solar, wind, biomass) especially for a poor country with high cost of power, facing tightness in power supply in near to medium term and with already adequate sourcing of power from current more cost effective green sources (hydro, geothermal at over 40 percent). Solar costs over P20 per kwh, wind around P10, versus grid rate now of about P4.50. These costs will go down over time, no advantage to the country in signing up long term contracts for these.
I hope he is able to resist strong supplier lobby for these expensive sources. Even the ADB has announced over a month ago, a $1-billion loan for the Philippines primarily to support such. This is something that Filipino taxpayers have to pay for down the road. This is on top of the increase in power rates arising from the high feed in tariffs.
From what I heard, they are talking of an initial fifteen centavos add on to the average tariff. This looks small until one calculates that this is about P10-billion ANNUAL public subsidy to inefficient foreign suppliers with immature technology, which can certainly be better used for other public purposes by a poor country like ours. That’s like being early adaptor to the first expensive cell phones costing P50 thousand for a minimum wage earner!
Don’t greet airline executives a Happy New Year. They are even now wishing they could put the next year on fast forward and get it over with. Fuel prices are again on an upswing and there are some analysts who are talking $100 a barrel oil. And even as mergers and alliances are starting to have some positive impact on the bottom line, the threat of a double dip recession could nip rising passenger numbers all too soon.
Domestically, two more things are major concerns. It is certain that 2011 will bring about open skies and increased competition. Despite the usual noise against it from the usual suspects, I don’t think open skies or the “pocket” open skies version can be stopped. I understand the Aquino administration strongly believes in it and is committed to implement it as soon as it can next year.
I am not going into the pros and cons of open skies because this is one topic that had been discussed widely and for some years now. From a business perspective, the local airlines should spend more effort now planning to live with it rather than trying to stop it. The rules of the game are changing and it is take it or leave it.
Stiff competition is the other major headache in the local airline industry. The smaller airlines are beefing up their fleet and teaming up with larger foreign airlines to give the predominant players, PAL and Cebu Pacific a run for market share.
As earlier reported in this column, SEAir is leasing Airbus 320s from Singapore’s Tiger Airways and will thus be in a better position of mounting flights to key domestic destinations too. Tonyboy Cojuangco is teaming up with Air Asia’s Tony Fernandes on a new airline with a 60/40 ownership structure that will also enable it to compete in the domestic market. Zest Air is also beefing up its fleet.
We are now seeing a stiff competition among the airlines not just for passengers but for the services of trained and certified pilots. The flight operations of some of the airlines, including the established ones, may be disrupted next year as pilots are continually being poached by local and foreign competitors.
This early, the President of Philippine Airlines is warning that the domestic market may not be that big and ruinous competition may result. That is probably true. It also complicates an already difficult market for the country’s premier flag carrier.
As I had explained here in some past columns, the big problem of PAL is that it is overstaffed and cannot be as nimble as the budget carriers like Cebu Pacific. PAL has some 7000 employees compared with Cebu Pacific’s 2,500 and at least in the domestic and comparable international regional routes, Cebu Pacific had been flying more passengers already.
This is why even the Department of Labor saw the importance of allowing PAL management to do what it should to improve the competitiveness of the airline. There is no choice for PAL but to try to approximate the efficiency of Cebu Pacific and the host of new and existing budget airlines in order to survive.
The order from Malacañang for both management and labor union to hold their horses will only delay the inevitable. There is no way they can escape addressing the need to make PAL’s structure and business model more in tune with competitive requirements in today’s airline market.
The officers of the employee labor union are doing their members a great disservice by refusing to see the futility of the status quo. The employees union should learn from the example of the American automotive unions. When it became clear that GM, Ford and Chrysler would go belly up unless the unions worked with management and government to save the car companies, the United Auto Workers or UAW decided that cooperation was the better deal.
It was a painful decision for the tough American automotive union who had to give up years of hard won benefits. But the union leaders realized that if they want to truly protect the economic interest of the workers, they will have to save their respective car companies first. It is the same thing with PAL. It is crunch time and every stakeholder must decide if they want to save the airline or bury it for good.
For the Lucio Tan haters, what Lucio Tan is or is not is irrelevant. The key problem now is how to make the airline competitive. The alternative is to let the airline die and allow the new airlines to take its market share. There is something Darwinian in the capitalist system. Weak corporations should be allowed to die.
If PAL dies because it was not allowed by its staff to reorganize to meet competition, the surviving airlines will take over PAL’s market share, routes and even its planes and other assets at no cost to the taxpayers. PAL should not be considered too big to fail.
Even if it wants to, it would be extremely difficult for the government to bail out PAL now. Government has a serious fiscal deficit problem. It is also not good policy to use the money of 90 million taxpayers to save 2,500 jobs, jobs which aren’t going to be there in the long term anyway.
What happens next in PAL is also going to be an important test for the Aquino administration. Will it just do the politically expedient alternative and capitulate? Will it exercise leadership and allow the airline to reconfigure its business model to help it survive today’s new business environment?
PAL employees should learn an important lesson from the pilots who went on strike some years ago. It turned out that the pilots’ union was ill-advised and the pilots lost everything after their strike had been held illegal by the courts.
But pilots have one great thing in their favor that the ordinary airline employees don’t have. Pilots have world class skills that are in high demand in the world market. In fact, retaining and hiring enough pilots will be a major headache for the local airlines next year. What money the airlines have will be used to keep and hire the pilots first.
A PAL strike during the holidays will be a disaster for the airline… but a life changing calamity for the affected employees and their families. It would be better for them to take the million pesos or so offered and then take their chances on a new career. The union leaders are taking on the responsibility for the lives of their members and their families. For their own sakes, I hope everyone will be reasonable.
Almendras
I was disappointed to learn that the Commission on Appointments failed to act on the confirmation of Secretary Almendras because one congressman raised issues about things that happened in the energy sector in 2006 and another in 2008. Almendras was not around at that time so the only thing he could promise was to look into it and have it investigated.
In the meantime, I got this reaction from a noted economist to my column last Wednesday.
Excellent column; amen on everything you said about Sec Almendras. I am especially glad to read that Secretary Rene appreciates the pitfalls of premature embrace of expensive Renewable Energy technology (solar, wind, biomass) especially for a poor country with high cost of power, facing tightness in power supply in near to medium term and with already adequate sourcing of power from current more cost effective green sources (hydro, geothermal at over 40 percent). Solar costs over P20 per kwh, wind around P10, versus grid rate now of about P4.50. These costs will go down over time, no advantage to the country in signing up long term contracts for these.
I hope he is able to resist strong supplier lobby for these expensive sources. Even the ADB has announced over a month ago, a $1-billion loan for the Philippines primarily to support such. This is something that Filipino taxpayers have to pay for down the road. This is on top of the increase in power rates arising from the high feed in tariffs.
From what I heard, they are talking of an initial fifteen centavos add on to the average tariff. This looks small until one calculates that this is about P10-billion ANNUAL public subsidy to inefficient foreign suppliers with immature technology, which can certainly be better used for other public purposes by a poor country like ours. That’s like being early adaptor to the first expensive cell phones costing P50 thousand for a minimum wage earner!
Fernandes, 'Tonyboy' team up for AirAsia Phils
By Mary Ann LL. Reyes (The Philippine Star) Updated December 17, 2010 12:00 AM
The Philippine Star : Business
MANILA, Philippines - Tony Fermandes, the founder and group chief executive officer of Asia’s largest budget carrier, has partnered with a group of local businessmen led by Antonio ‘Tonyboy’ Cojuangco in a $25-million airline company venture.
The new airline, AirAsia Philippines, will be 60 percent owned by Cojuangco, Michael Romero of the Harbour Centre Group in his personal capacity, and former Warner Music Philippines chief executive Marianne ‘Maan’ Hontiveros, each having equal 20 percent stakes, and 40 percent by Kuala-Lumpur-based AirAsia Bhd. through its fully owned subsidiary AirAsia International Ltd.
Cojuangco will be the chairman of the new airline company while Romero will be vice-chairman. Hontiveros will be chief executive officer.
AirAsia Group CEO Fernandes said they are proud to extend AirAsia’s successful low-cost business model to the Philippines and make it affordable for the average Filipino to travel domestically and regionally. “Greater connectivity across ASEAN would not only boost economic growth by providing better access to markets but also enhance links within travel, trade and tourism. This initiative will also help bring ASEAN closer by enabling intra-ASEAN travel with AirAsia’s connectivity and route network via our strategic hubs,” he explained.
He said the new Philippine airline has yet to decide whether to use Clark or Subic as their local hub for their regional flights. “The decision will boil down to which will be more cost-efficient, but AirAsia has been flying into Clark for sometime now,” he pointed out. He also revealed plans to set up hubs in other parts of the country. In Indonesia, AirAsia has six hubs.
Cojuangco, whose family used to control Philippine Airlines until they sold out to taipan Lucio Tan, said the decision to team up with AirAsia and re-enter the airline business was mainly due to two reasons. “As a businessman, I have a number of conditions before I enter a business. The product must be very good and of very high quality. Here, we have a very good product that is low cost and of high quality. Many of my products are good but we are not very good in marketing. My restaurants are not doing well. We are not able to sell some of our products because people are not aware that we exist. Partnering with Tony (Fernandes) will expose me to his marketing gimmick. And I believe that teaming up with him will be very profitable, even for my other businesses,” he said.
Cojuangco hinted that the partnership with Fernandes could extend to his other businesses. “There are other things that we could do together,” he said.
For his part, Romero, chairman of Manila North Harbour Port Terminal Inc., which bagged the 25-year concession from the government to operate the country’s busiest domestic seaport, said that with passengers at North Harbor going down due to competition from airlines, “we have decided to invest in the competition.”
It was sports and music that brought the four partners together. Hontiveros worked for Fernandes when the latter was vice president for ASEAN of Warner Music SEA while Cojuangco and Romero are co-owners of the Philippine Patriots basketball team. “Joint ventures are made in the golf course. In the case of AirAsia Philippines, it was basketball and music that brought us together,” Cojuangco explained.
AirAsia Philippines will have its maiden flight in September next year to a still-undisclosed country in the ASEAN region. It will be acquiring a fleet of brand-new Airbus 320s.
Fernandes also said that it is possible that the new airline will also fly domestic routes. He explained that flying domestically in the Philippines would be good for AirAsia because it will provide the feeder service for incoming tourists who would want to go to other parts of the country, including those not adequately serviced by existing domestic airlines.
Meanwhile, he noted that they will likely be profitable on day one, given their low-cost, low-fare model. “Where we have gone, the market has grown. We expect the venture to be profitable because a lot of hardwork has already been done and the routes we are considering in the region are routes that have already been exploited by AirAsia. Thus, the set-up cost will be low. Also, the AirAsia brand is already well known,” he added.
The Philippine Star : Business
MANILA, Philippines - Tony Fermandes, the founder and group chief executive officer of Asia’s largest budget carrier, has partnered with a group of local businessmen led by Antonio ‘Tonyboy’ Cojuangco in a $25-million airline company venture.
The new airline, AirAsia Philippines, will be 60 percent owned by Cojuangco, Michael Romero of the Harbour Centre Group in his personal capacity, and former Warner Music Philippines chief executive Marianne ‘Maan’ Hontiveros, each having equal 20 percent stakes, and 40 percent by Kuala-Lumpur-based AirAsia Bhd. through its fully owned subsidiary AirAsia International Ltd.
Cojuangco will be the chairman of the new airline company while Romero will be vice-chairman. Hontiveros will be chief executive officer.
AirAsia Group CEO Fernandes said they are proud to extend AirAsia’s successful low-cost business model to the Philippines and make it affordable for the average Filipino to travel domestically and regionally. “Greater connectivity across ASEAN would not only boost economic growth by providing better access to markets but also enhance links within travel, trade and tourism. This initiative will also help bring ASEAN closer by enabling intra-ASEAN travel with AirAsia’s connectivity and route network via our strategic hubs,” he explained.
He said the new Philippine airline has yet to decide whether to use Clark or Subic as their local hub for their regional flights. “The decision will boil down to which will be more cost-efficient, but AirAsia has been flying into Clark for sometime now,” he pointed out. He also revealed plans to set up hubs in other parts of the country. In Indonesia, AirAsia has six hubs.
Cojuangco, whose family used to control Philippine Airlines until they sold out to taipan Lucio Tan, said the decision to team up with AirAsia and re-enter the airline business was mainly due to two reasons. “As a businessman, I have a number of conditions before I enter a business. The product must be very good and of very high quality. Here, we have a very good product that is low cost and of high quality. Many of my products are good but we are not very good in marketing. My restaurants are not doing well. We are not able to sell some of our products because people are not aware that we exist. Partnering with Tony (Fernandes) will expose me to his marketing gimmick. And I believe that teaming up with him will be very profitable, even for my other businesses,” he said.
Cojuangco hinted that the partnership with Fernandes could extend to his other businesses. “There are other things that we could do together,” he said.
For his part, Romero, chairman of Manila North Harbour Port Terminal Inc., which bagged the 25-year concession from the government to operate the country’s busiest domestic seaport, said that with passengers at North Harbor going down due to competition from airlines, “we have decided to invest in the competition.”
It was sports and music that brought the four partners together. Hontiveros worked for Fernandes when the latter was vice president for ASEAN of Warner Music SEA while Cojuangco and Romero are co-owners of the Philippine Patriots basketball team. “Joint ventures are made in the golf course. In the case of AirAsia Philippines, it was basketball and music that brought us together,” Cojuangco explained.
AirAsia Philippines will have its maiden flight in September next year to a still-undisclosed country in the ASEAN region. It will be acquiring a fleet of brand-new Airbus 320s.
Fernandes also said that it is possible that the new airline will also fly domestic routes. He explained that flying domestically in the Philippines would be good for AirAsia because it will provide the feeder service for incoming tourists who would want to go to other parts of the country, including those not adequately serviced by existing domestic airlines.
Meanwhile, he noted that they will likely be profitable on day one, given their low-cost, low-fare model. “Where we have gone, the market has grown. We expect the venture to be profitable because a lot of hardwork has already been done and the routes we are considering in the region are routes that have already been exploited by AirAsia. Thus, the set-up cost will be low. Also, the AirAsia brand is already well known,” he added.
PAL workers see joyous Christmas
By Mayen Jaymalin (The Philippine Star) Updated December 17, 2010 12:00 AM
MANILA, Philippines - Philippine Airlines (PAL) employees are now looking forward to a joyous Christmas with Malacañang’s decision to defer the planned mass layoff of 2,600 airline employees.
“PAL employees will have a merry Christmas since no retrenchment will happen this holiday season. Although it is not yet sure if we will have a happy new year because the suspension of the ruling of (Labor Secretary Rosalinda) Baldoz is only temporary,” PAL Employees Association (PALEA) president Gerry Rivera said.
But after the holiday season, Rivera said work stoppage could still be an option for PALEA members.
Rivera explained that while the planned strike by PALEA has also been stopped by the assumption order from the Office of the President, the legal requirements have been complied with and so it remains an option for the union should the labor dispute remain unresolved.
Earlier, President Aquino assumed jurisdiction over the labor dispute and restrained PAL management from implementing the order of the labor department allowing the planned mass retrenchment of workers.
“PALEA calls on its members and its supporters from the labor movement to remain vigilant. We have won a battle but we have not yet won the war. For more than a year already we have stopped PAL from implementing its planned outsourcing. But next year we will wage the mother of all battles to finally defeat PAL’s contractualization scheme,” Rivera said in a statement.
PAL said they would respect Malacañang’s assumption order which also effectively stopped PAL union’s strike plans.
PAL president Jaime Bautista said the flag carrier would abide by the Palace order as it has always done in the past.
Bautista said the Palace order was most timely since it comes at the height of the Christmas rush, when travelers have firmed up their travel plans and are eager to spend the holidays with their loved ones.
MANILA, Philippines - Philippine Airlines (PAL) employees are now looking forward to a joyous Christmas with Malacañang’s decision to defer the planned mass layoff of 2,600 airline employees.
“PAL employees will have a merry Christmas since no retrenchment will happen this holiday season. Although it is not yet sure if we will have a happy new year because the suspension of the ruling of (Labor Secretary Rosalinda) Baldoz is only temporary,” PAL Employees Association (PALEA) president Gerry Rivera said.
But after the holiday season, Rivera said work stoppage could still be an option for PALEA members.
Rivera explained that while the planned strike by PALEA has also been stopped by the assumption order from the Office of the President, the legal requirements have been complied with and so it remains an option for the union should the labor dispute remain unresolved.
Earlier, President Aquino assumed jurisdiction over the labor dispute and restrained PAL management from implementing the order of the labor department allowing the planned mass retrenchment of workers.
“PALEA calls on its members and its supporters from the labor movement to remain vigilant. We have won a battle but we have not yet won the war. For more than a year already we have stopped PAL from implementing its planned outsourcing. But next year we will wage the mother of all battles to finally defeat PAL’s contractualization scheme,” Rivera said in a statement.
PAL said they would respect Malacañang’s assumption order which also effectively stopped PAL union’s strike plans.
PAL president Jaime Bautista said the flag carrier would abide by the Palace order as it has always done in the past.
Bautista said the Palace order was most timely since it comes at the height of the Christmas rush, when travelers have firmed up their travel plans and are eager to spend the holidays with their loved ones.
Aquino halts PAL retrenchments
Thursday, 16 December 2010 01:16 Mia M. Gonzalez and Recto Mercene / Reporters
Business Mirror
CITING the need to protect national interest, Malacañang has assumed jurisdiction over the labor row between Philippine Airlines (PAL) management and the Philippine Airlines Employees Association (Palea), and stayed the Department of Labor and Employment (DOLE) order allowing a retrenchment at the national carrier.
The Palace order, contained in its decision on the petition filed by Palea with the Office of the President (OP) seeking presidential intervention in the PAL labor dispute, directs PAL management and Palea “to desist from undertaking any action that will aggravate the situation” pending the resolution of the petition, including going on strike on the part of Palea.
Presidential Spokesman Edwin Lacierda told reporters at the Palace press area that the OP order “stays two orders of the secretary of Labor.”
“What it plainly means is that on the part of labor, they will not engage in strikes. On the part of management, there will be no lockout. Everything is on hold.... By assuming jurisdiction, the government will intervene and discuss it with both parties,” Lacierda said.
He added: “If and when there is no agreement, then the Office of the President will render decision on the petition of Palea.”
In the OP order, Ochoa said the petition to suspend the effect of mass termination and the notice of strike “are hereby consolidated with the main petition.”
“Pending determination of the merits, thereof, and so as not to render moot and academic the resolution of the case, the orders dated 15 June 2010 and 29 October 2010 of the secretary of Labor...are stayed,” Ochoa said.
He added: “Palea and PAL management are directed to desist from undertaking any action that will aggravate the situation pending the resolution of this petition.”
Ochoa said that in issuing the directive, “it is but fair and just to afford Palea ample opportunity to exhaust its legal remedies available under the law.”
He said that while Article 263(i) of the Labor Code “provides, among others, that the decision of the secretary of Labor and Employment shall be final and executory in 10 calendar days after receipt thereof by the parties, pursuant to Section 6 of Administrative Order 18, we hold in abeyance the implementation of the subject order to give way to the overriding interests of the parties.”
Ochoa cited Article 263 (g) paragraph 3 of the Labor Code, which provides that “...the President of the Philippines shall not preclude from determining the industries that, in his opinion, are indispensable to the national interest, and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same.”
“Explicit in the statutory provision is the grant of power to the President to intervene at any time and assume jurisdiction over a labor dispute involving industries indispensable to national interest. Nowhere is it provided therein, that the same should be by way of appeal or through an original action as an extraordinary remedy,” Ochoa said.
He said the power of the President to review the DOLE orders is enshrined in Article VII, Section 17 of the Philippine Constitution, which states that “the President shall have control of all the executive departments, bureaus and offices.”
“And when the industries indispensable to national interest [the determination of which the Labor Code vested to the President of the Philippines and the secretary of Labor and Employment, with utmost unlimited discretion], get entangled in a labor dispute as in the instant case, the same code provides for Presidential intervention,” Ochoa said.
For its part, the PAL management yesterday said it will respect Malacañang’s assumption order which effectively stopped the PAL union’s strike plans and also held in abeyance the flag carrier’s spin-off program pending the result of the Palace review of the case.
PAL president Jaime Bautista said the flag carrier would abide by the Palace order as it has always done in the past.
“PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three noncore businesses, as it is awaiting the result of the Palace review of the labor dispute,” he said.
Bautista said the Palace order is most timely, since it comes at the height of the Christmas rush, when travelers have firmed up their travel plans and are eager to spend the holidays with their loved ones.
“While PAL’s spin-off program can wait, the order stopping the strike is the best Christmas gift the Palace can give to thousands of anxious PAL passengers with scheduled flights this holiday season. The strike ban will assuage the anxiety of our passengers in the midst of Palea’s repeated strike threats,” he added.
Bautista said PAL has always maintained that Malacañang has primary jurisdiction over the labor dispute. He stressed that it was Palea that sought presidential review of the earlier order of the Labor department recognizing the flag carrier’s prerogative to restructure its organization and implement a spin-off plan affecting some 2,600 workers.
Business Mirror
CITING the need to protect national interest, Malacañang has assumed jurisdiction over the labor row between Philippine Airlines (PAL) management and the Philippine Airlines Employees Association (Palea), and stayed the Department of Labor and Employment (DOLE) order allowing a retrenchment at the national carrier.
The Palace order, contained in its decision on the petition filed by Palea with the Office of the President (OP) seeking presidential intervention in the PAL labor dispute, directs PAL management and Palea “to desist from undertaking any action that will aggravate the situation” pending the resolution of the petition, including going on strike on the part of Palea.
Presidential Spokesman Edwin Lacierda told reporters at the Palace press area that the OP order “stays two orders of the secretary of Labor.”
“What it plainly means is that on the part of labor, they will not engage in strikes. On the part of management, there will be no lockout. Everything is on hold.... By assuming jurisdiction, the government will intervene and discuss it with both parties,” Lacierda said.
He added: “If and when there is no agreement, then the Office of the President will render decision on the petition of Palea.”
In the OP order, Ochoa said the petition to suspend the effect of mass termination and the notice of strike “are hereby consolidated with the main petition.”
“Pending determination of the merits, thereof, and so as not to render moot and academic the resolution of the case, the orders dated 15 June 2010 and 29 October 2010 of the secretary of Labor...are stayed,” Ochoa said.
He added: “Palea and PAL management are directed to desist from undertaking any action that will aggravate the situation pending the resolution of this petition.”
Ochoa said that in issuing the directive, “it is but fair and just to afford Palea ample opportunity to exhaust its legal remedies available under the law.”
He said that while Article 263(i) of the Labor Code “provides, among others, that the decision of the secretary of Labor and Employment shall be final and executory in 10 calendar days after receipt thereof by the parties, pursuant to Section 6 of Administrative Order 18, we hold in abeyance the implementation of the subject order to give way to the overriding interests of the parties.”
Ochoa cited Article 263 (g) paragraph 3 of the Labor Code, which provides that “...the President of the Philippines shall not preclude from determining the industries that, in his opinion, are indispensable to the national interest, and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same.”
“Explicit in the statutory provision is the grant of power to the President to intervene at any time and assume jurisdiction over a labor dispute involving industries indispensable to national interest. Nowhere is it provided therein, that the same should be by way of appeal or through an original action as an extraordinary remedy,” Ochoa said.
He said the power of the President to review the DOLE orders is enshrined in Article VII, Section 17 of the Philippine Constitution, which states that “the President shall have control of all the executive departments, bureaus and offices.”
“And when the industries indispensable to national interest [the determination of which the Labor Code vested to the President of the Philippines and the secretary of Labor and Employment, with utmost unlimited discretion], get entangled in a labor dispute as in the instant case, the same code provides for Presidential intervention,” Ochoa said.
For its part, the PAL management yesterday said it will respect Malacañang’s assumption order which effectively stopped the PAL union’s strike plans and also held in abeyance the flag carrier’s spin-off program pending the result of the Palace review of the case.
PAL president Jaime Bautista said the flag carrier would abide by the Palace order as it has always done in the past.
“PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three noncore businesses, as it is awaiting the result of the Palace review of the labor dispute,” he said.
Bautista said the Palace order is most timely, since it comes at the height of the Christmas rush, when travelers have firmed up their travel plans and are eager to spend the holidays with their loved ones.
“While PAL’s spin-off program can wait, the order stopping the strike is the best Christmas gift the Palace can give to thousands of anxious PAL passengers with scheduled flights this holiday season. The strike ban will assuage the anxiety of our passengers in the midst of Palea’s repeated strike threats,” he added.
Bautista said PAL has always maintained that Malacañang has primary jurisdiction over the labor dispute. He stressed that it was Palea that sought presidential review of the earlier order of the Labor department recognizing the flag carrier’s prerogative to restructure its organization and implement a spin-off plan affecting some 2,600 workers.
Malacañang blocks PAL’s labor strike
Manila Standard Today
December 16, 2010
PRESIDENT Benigno Aquino III on Wednesday prevented a looming strike at Philippine Airlines by ordering the flag carrier to temporarily stop its plan to lay off 2,600 employees as part of its bid to outsource its catering, call center and airport services.
The order, signed by Executive Secretary Pacquito Ochoa Jr., stays a Labor Department decision that recognized the airline’s prerogative to reorganize its operations. It also stops the Philippine Airlines Employees Association from striking until the Palace decides on the case.
The Palace ordered both sides to avoid taking actions that would aggravate the situation pending a resolution of their dispute.
Before the Palace stepped in, the Labor Department allowed PAL to outsource its three units to third-party service providers and ordered the flag carrier to pay a 125-percent separation pay and a gratuity of P50,000 to each employee who would be laid off by the plan.
Union members voted to strike last week.
“It is an initial victory for [the union]. The order has stopped PAL’s mass termination of more than 2,600 employees,” the group’s lawyer Marlon Manuel said in a text message.
“We appreciate the President’s intervention in this dispute, which is an important issue not only to PAL workers but to all workers in the country.”
In a statement, PAL president Jaime Bautista said the flag carrier will abide by the Palace order.
“PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three non-core businesses, as it is awaiting the result of the Palace review of the labor dispute,” Bautista said.
He said the Palace order was timely since it came at the height of the Christmas rush, when travelers had firmed up their vacation plans.
“While PAL’s spin-off program can wait, the order stopping the strike is the best Christmas gift the Palace can give to thousands of anxious PAL passengers with scheduled flights this holiday season,” Bautista said.
“The strike ban will assuage the anxiety of our passengers in the midst of [the union’s] repeated strike threats.” Joyce Pangco Pañares
December 16, 2010
PRESIDENT Benigno Aquino III on Wednesday prevented a looming strike at Philippine Airlines by ordering the flag carrier to temporarily stop its plan to lay off 2,600 employees as part of its bid to outsource its catering, call center and airport services.
The order, signed by Executive Secretary Pacquito Ochoa Jr., stays a Labor Department decision that recognized the airline’s prerogative to reorganize its operations. It also stops the Philippine Airlines Employees Association from striking until the Palace decides on the case.
The Palace ordered both sides to avoid taking actions that would aggravate the situation pending a resolution of their dispute.
Before the Palace stepped in, the Labor Department allowed PAL to outsource its three units to third-party service providers and ordered the flag carrier to pay a 125-percent separation pay and a gratuity of P50,000 to each employee who would be laid off by the plan.
Union members voted to strike last week.
“It is an initial victory for [the union]. The order has stopped PAL’s mass termination of more than 2,600 employees,” the group’s lawyer Marlon Manuel said in a text message.
“We appreciate the President’s intervention in this dispute, which is an important issue not only to PAL workers but to all workers in the country.”
In a statement, PAL president Jaime Bautista said the flag carrier will abide by the Palace order.
“PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three non-core businesses, as it is awaiting the result of the Palace review of the labor dispute,” Bautista said.
He said the Palace order was timely since it came at the height of the Christmas rush, when travelers had firmed up their vacation plans.
“While PAL’s spin-off program can wait, the order stopping the strike is the best Christmas gift the Palace can give to thousands of anxious PAL passengers with scheduled flights this holiday season,” Bautista said.
“The strike ban will assuage the anxiety of our passengers in the midst of [the union’s] repeated strike threats.” Joyce Pangco Pañares
Malacañang blocks PAL’s labor strike
December 16, 2010
Manila Standard Today
PRESIDENT Benigno Aquino III on Wednesday prevented a looming strike at Philippine Airlines by ordering the flag carrier to temporarily stop its plan to lay off 2,600 employees as part of its bid to outsource its catering, call center and airport services.
The order, signed by Executive Secretary Pacquito Ochoa Jr., stays a Labor Department decision that recognized the airline’s prerogative to reorganize its operations. It also stops the Philippine Airlines Employees Association from striking until the Palace decides on the case.
The Palace ordered both sides to avoid taking actions that would aggravate the situation pending a resolution of their dispute.
Before the Palace stepped in, the Labor Department allowed PAL to outsource its three units to third-party service providers and ordered the flag carrier to pay a 125-percent separation pay and a gratuity of P50,000 to each employee who would be laid off by the plan.
Union members voted to strike last week.
“It is an initial victory for [the union]. The order has stopped PAL’s mass termination of more than 2,600 employees,” the group’s lawyer Marlon Manuel said in a text message.
“We appreciate the President’s intervention in this dispute, which is an important issue not only to PAL workers but to all workers in the country.”
In a statement, PAL president Jaime Bautista said the flag carrier will abide by the Palace order.
“PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three non-core businesses, as it is awaiting the result of the Palace review of the labor dispute,” Bautista said.
He said the Palace order was timely since it came at the height of the Christmas rush, when travelers had firmed up their vacation plans.
“While PAL’s spin-off program can wait, the order stopping the strike is the best Christmas gift the Palace can give to thousands of anxious PAL passengers with scheduled flights this holiday season,” Bautista said.
“The strike ban will assuage the anxiety of our passengers in the midst of [the union’s] repeated strike threats.” Joyce Pangco Pañares
Manila Standard Today
PRESIDENT Benigno Aquino III on Wednesday prevented a looming strike at Philippine Airlines by ordering the flag carrier to temporarily stop its plan to lay off 2,600 employees as part of its bid to outsource its catering, call center and airport services.
The order, signed by Executive Secretary Pacquito Ochoa Jr., stays a Labor Department decision that recognized the airline’s prerogative to reorganize its operations. It also stops the Philippine Airlines Employees Association from striking until the Palace decides on the case.
The Palace ordered both sides to avoid taking actions that would aggravate the situation pending a resolution of their dispute.
Before the Palace stepped in, the Labor Department allowed PAL to outsource its three units to third-party service providers and ordered the flag carrier to pay a 125-percent separation pay and a gratuity of P50,000 to each employee who would be laid off by the plan.
Union members voted to strike last week.
“It is an initial victory for [the union]. The order has stopped PAL’s mass termination of more than 2,600 employees,” the group’s lawyer Marlon Manuel said in a text message.
“We appreciate the President’s intervention in this dispute, which is an important issue not only to PAL workers but to all workers in the country.”
In a statement, PAL president Jaime Bautista said the flag carrier will abide by the Palace order.
“PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three non-core businesses, as it is awaiting the result of the Palace review of the labor dispute,” Bautista said.
He said the Palace order was timely since it came at the height of the Christmas rush, when travelers had firmed up their vacation plans.
“While PAL’s spin-off program can wait, the order stopping the strike is the best Christmas gift the Palace can give to thousands of anxious PAL passengers with scheduled flights this holiday season,” Bautista said.
“The strike ban will assuage the anxiety of our passengers in the midst of [the union’s] repeated strike threats.” Joyce Pangco Pañares
No strike, no spin-off at PAL
Palace orders status quo
By Norman Bordadora, Paolo Montecillo
Philippine Daily Inquirer
First Posted 05:28:00 12/16/2010
MANILA, Philippines — President Benigno Aquino III has ordered the Philippine Airlines (PAL) management and union to refrain from any action that would ground the nation’s flag carrier, and suspended a program to spin off PAL’s related services, Malacañang said Wednesday.
Mr. Aquino’s directives “to desist from any action that will aggravate the situation pending resolution” of the case were contained in an order signed by Executive Secretary Paquito Ochoa Jr., according to the President’s spokesperson, Edwin Lacierda.
“What it plainly means is that on the part of labor, they’ll not engage in strikes. On the part of management, there will be no lockout,” Lacierda said in a news briefing.
Welcomed
Both PAL management and the Philippine Airlines Employees Association (PALEA) welcomed Malacañang’s order signed on Tuesday.
In a statement, PAL president Jaime J. Bautista said the flag carrier will abide by the Palace order as it has always done so in the past.
“PAL would like to reiterate that it has not, in any way, shape or form, implemented the spin-off of its three non-core businesses, as it is awaiting the results of the Palace review of the labor dispute,” he said.
Bautista said the Palace order is most timely since it comes at the height of the Christmas rush, when travelers have firmed up their travel plans and are eager to spend the holidays with their loved ones.
“While PAL’s spin-off program can wait, the order stopping the strike is the best Christmas gift the Palace can give to thousands of anxious PAL passengers with scheduled flights this holiday season. The strike ban will assuage the anxiety of our passengers in the midst of PALEA’s repeated strike threats,” he added.
Bautista said PAL has always maintained that Malacañang has primary jurisdiction over the labor dispute. He stressed that it was PALEA who sought presidential review of the earlier order of the Department of Labor and Employment recognizing the flag carrier’s prerogative to restructure its organization and implement a spin-off plan affecting some 2,600 workers.
Initial victory
“It is an initial victory for PALEA. The order has stopped PAL’s mass termination of more than 2,600 employees,” PALEA lawyer Marlon Manuel said.
“We appreciate the President’s intervention in this dispute, which is an important issue not only to PAL workers but to all workers in the country,” he added.
“We thank the President for this decision,” PALEA president Gerry Rivera said in a statement.
Rivera said the union had called off a strike planned this month. “This order by the Palace would be good for everybody, including especially for our union members,” he said.
“Holding a strike is very hard, but we planned one because we wanted to defend our jobs.”
PAL earlier said while its bookings had not been affected by strike threats, many worried passengers had called to ask if a possible work stoppage would result in a disruption of operations.
By Norman Bordadora, Paolo Montecillo
Philippine Daily Inquirer
First Posted 05:28:00 12/16/2010
MANILA, Philippines — President Benigno Aquino III has ordered the Philippine Airlines (PAL) management and union to refrain from any action that would ground the nation’s flag carrier, and suspended a program to spin off PAL’s related services, Malacañang said Wednesday.
Mr. Aquino’s directives “to desist from any action that will aggravate the situation pending resolution” of the case were contained in an order signed by Executive Secretary Paquito Ochoa Jr., according to the President’s spokesperson, Edwin Lacierda.
“What it plainly means is that on the part of labor, they’ll not engage in strikes. On the part of management, there will be no lockout,” Lacierda said in a news briefing.
Welcomed
Both PAL management and the Philippine Airlines Employees Association (PALEA) welcomed Malacañang’s order signed on Tuesday.
In a statement, PAL president Jaime J. Bautista said the flag carrier will abide by the Palace order as it has always done so in the past.
“PAL would like to reiterate that it has not, in any way, shape or form, implemented the spin-off of its three non-core businesses, as it is awaiting the results of the Palace review of the labor dispute,” he said.
Bautista said the Palace order is most timely since it comes at the height of the Christmas rush, when travelers have firmed up their travel plans and are eager to spend the holidays with their loved ones.
“While PAL’s spin-off program can wait, the order stopping the strike is the best Christmas gift the Palace can give to thousands of anxious PAL passengers with scheduled flights this holiday season. The strike ban will assuage the anxiety of our passengers in the midst of PALEA’s repeated strike threats,” he added.
Bautista said PAL has always maintained that Malacañang has primary jurisdiction over the labor dispute. He stressed that it was PALEA who sought presidential review of the earlier order of the Department of Labor and Employment recognizing the flag carrier’s prerogative to restructure its organization and implement a spin-off plan affecting some 2,600 workers.
Initial victory
“It is an initial victory for PALEA. The order has stopped PAL’s mass termination of more than 2,600 employees,” PALEA lawyer Marlon Manuel said.
“We appreciate the President’s intervention in this dispute, which is an important issue not only to PAL workers but to all workers in the country,” he added.
“We thank the President for this decision,” PALEA president Gerry Rivera said in a statement.
Rivera said the union had called off a strike planned this month. “This order by the Palace would be good for everybody, including especially for our union members,” he said.
“Holding a strike is very hard, but we planned one because we wanted to defend our jobs.”
PAL earlier said while its bookings had not been affected by strike threats, many worried passengers had called to ask if a possible work stoppage would result in a disruption of operations.
PALEA welcomes Malacañang's decision on PAL labor row
December 16, 2010, 2:36pm
Manila Bulletin
MANILA, Philippines (PNA) — The Philippine Airlines Employees’ Association (PALEA) welcomed the decision of Malacañang assuming jurisdiction over the labor dispute at the Philippine Airlines.
The union officials and members said the Palace decision would mean a merry Christmas for them this year, but added they are worried if they will have a joyous 2011.
“PAL employees will have a merry Christmas since no retrenchment will happen this holiday season, although it is not yet sure if we will have a happy new year because the suspension of the ruling of (Labor Secretary) Baldoz is only temporary,” Gerry Rivera, PALEA president, said in statement.
The union leader was reacting on the assumption order of President Benigno S. Aquino III that stayed the decision of Labor Secretary Rosalinda Baldoz allowing the planned outsourcing and layoff of workers at PAL.
“Even as we thank P-Noy for the order suspending the mass layoff, this initial victory is possible only because of the militance of PAL employees and the unity of labor groups,” Rivera added.
The group filed a petition with the Office of the President (OP) last Nov. 12 but the formal assumption order took more than a month.
“PALEA calls on its members and its supporters from the labor movement to remain vigilant. We have won a battle but we have not yet won the war. For more than a year already, we have stopped PAL from implementing its planned outsourcing. But next year, we will wage the mother of all battles to finally defeat PAL’s contractualization scheme,” Rivera said.
Earlier, PAL president Jaime Bautista said they will abide by Malacañang's order.
"PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three non-core businesses, as it is awaiting the result of the Palace review of the labor dispute," he said in a separate statement.
On Wednesday, Executive Secretary Pacquito Ochoa Jr. deferred an earlier decision of the Department of Labor and Employment (DOLE) which allowed the airline’s reorganization plans.
A total of 2,600 employees will be affected by the outsourcing of the company’s catering, call center and airport services.
Manila Bulletin
MANILA, Philippines (PNA) — The Philippine Airlines Employees’ Association (PALEA) welcomed the decision of Malacañang assuming jurisdiction over the labor dispute at the Philippine Airlines.
The union officials and members said the Palace decision would mean a merry Christmas for them this year, but added they are worried if they will have a joyous 2011.
“PAL employees will have a merry Christmas since no retrenchment will happen this holiday season, although it is not yet sure if we will have a happy new year because the suspension of the ruling of (Labor Secretary) Baldoz is only temporary,” Gerry Rivera, PALEA president, said in statement.
The union leader was reacting on the assumption order of President Benigno S. Aquino III that stayed the decision of Labor Secretary Rosalinda Baldoz allowing the planned outsourcing and layoff of workers at PAL.
“Even as we thank P-Noy for the order suspending the mass layoff, this initial victory is possible only because of the militance of PAL employees and the unity of labor groups,” Rivera added.
The group filed a petition with the Office of the President (OP) last Nov. 12 but the formal assumption order took more than a month.
“PALEA calls on its members and its supporters from the labor movement to remain vigilant. We have won a battle but we have not yet won the war. For more than a year already, we have stopped PAL from implementing its planned outsourcing. But next year, we will wage the mother of all battles to finally defeat PAL’s contractualization scheme,” Rivera said.
Earlier, PAL president Jaime Bautista said they will abide by Malacañang's order.
"PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three non-core businesses, as it is awaiting the result of the Palace review of the labor dispute," he said in a separate statement.
On Wednesday, Executive Secretary Pacquito Ochoa Jr. deferred an earlier decision of the Department of Labor and Employment (DOLE) which allowed the airline’s reorganization plans.
A total of 2,600 employees will be affected by the outsourcing of the company’s catering, call center and airport services.
Thursday, December 16, 2010
Palace orders status quo on PAL dispute
Posted on 09:54 PM, December 15, 2010
Business World
THE PALACE has issued a hold order on the labor dispute between the Philippine Airlines (PAL) management and its labor union over a planned outsourcing of the carrier’s three ground operations which would result in the layoff of some 2,600 workers.
The Office of the President (OP), in an order signed by Executive Secretary Paquito “Jojo” N. Ochoa last Tuesday, formally assumed jurisdiction over the labor row and directed PAL management and its labor union Philippine Airlines Employees’ Association (PALEA) to refrain from doing any action that will worsen the situation.
“PALEA and PAL management are directed to desist from undertaking any action that will aggravate the situation pending the resolution of this petition,” the order read.
The order also stated that the June 15 and Oct. 29 ruling of the Department of Labor and Employment (DoLE) approving the implementation of the outsourcing of PAL’s flight catering, airport services and call center reservations operations will be deferred pending a review of the case.
“We hold in abeyance the implementation of the subject Order to give way to the overriding interest of the parties,” the order read.
The PAL management said it will abide by Malacañang’s assumption order and welcomed the decision which it said has averted a strike by members of PALEA.
“PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three non-core businesses, as it is awaiting the result of the Palace review of the labor dispute,” PAL President Jaime J. Bautista said in a statement yesterday. “The strike ban will assuage the anxiety of our passengers in the midst of PALEA’s repeated strike threats,” he added.
PALEA President Gerardo F. Rivera also welcomed Malacañang’s move and said they will respect the status quo order.
“As we’ve said before, we will abide with whatever order comes from Malacañang. We will not insinuate a plan to hold a strike. We will not do that. We will respect the Palace’s order,” he said in a phone interview.
With the assumption of jurisdiction, the OP has consolidated PALEA’s petition for presidential intervention dated Nov. 12, to suspend the effect of the mass termination filed with DoLE last Nov. 8 and the notice of strike also filed with DoLE last Nov. 5.
President Benigno S. C. Aquino III last week said he has tasked Mr. Ochoa to talk to both management and PALEA to resolve the issue.
The president has been intervening in the labor case as the issues would have an impact on the riding public.
In an order last Nov. 18, the Palace asked DoLE to elevate complete records of the cases to the OP which received the documents last Dec. 6.
“The President of the Philippine shall not be precluded from determining the industries that in his opinion are indispensable to the national interest and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same,” the order read, citing Article 263 paragraph 3 of Presidential Decree 442 which instituted the Labor Code. -- Ana Mae G. Roa
Business World
THE PALACE has issued a hold order on the labor dispute between the Philippine Airlines (PAL) management and its labor union over a planned outsourcing of the carrier’s three ground operations which would result in the layoff of some 2,600 workers.
The Office of the President (OP), in an order signed by Executive Secretary Paquito “Jojo” N. Ochoa last Tuesday, formally assumed jurisdiction over the labor row and directed PAL management and its labor union Philippine Airlines Employees’ Association (PALEA) to refrain from doing any action that will worsen the situation.
“PALEA and PAL management are directed to desist from undertaking any action that will aggravate the situation pending the resolution of this petition,” the order read.
The order also stated that the June 15 and Oct. 29 ruling of the Department of Labor and Employment (DoLE) approving the implementation of the outsourcing of PAL’s flight catering, airport services and call center reservations operations will be deferred pending a review of the case.
“We hold in abeyance the implementation of the subject Order to give way to the overriding interest of the parties,” the order read.
The PAL management said it will abide by Malacañang’s assumption order and welcomed the decision which it said has averted a strike by members of PALEA.
“PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three non-core businesses, as it is awaiting the result of the Palace review of the labor dispute,” PAL President Jaime J. Bautista said in a statement yesterday. “The strike ban will assuage the anxiety of our passengers in the midst of PALEA’s repeated strike threats,” he added.
PALEA President Gerardo F. Rivera also welcomed Malacañang’s move and said they will respect the status quo order.
“As we’ve said before, we will abide with whatever order comes from Malacañang. We will not insinuate a plan to hold a strike. We will not do that. We will respect the Palace’s order,” he said in a phone interview.
With the assumption of jurisdiction, the OP has consolidated PALEA’s petition for presidential intervention dated Nov. 12, to suspend the effect of the mass termination filed with DoLE last Nov. 8 and the notice of strike also filed with DoLE last Nov. 5.
President Benigno S. C. Aquino III last week said he has tasked Mr. Ochoa to talk to both management and PALEA to resolve the issue.
The president has been intervening in the labor case as the issues would have an impact on the riding public.
In an order last Nov. 18, the Palace asked DoLE to elevate complete records of the cases to the OP which received the documents last Dec. 6.
“The President of the Philippine shall not be precluded from determining the industries that in his opinion are indispensable to the national interest and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same,” the order read, citing Article 263 paragraph 3 of Presidential Decree 442 which instituted the Labor Code. -- Ana Mae G. Roa
Union members say PAL strike vote illegal
Malaya
December 15, 2010
After the secretary of labor issued an order telling the members of the Philippine Airlines Employees Association that they are entitled to P2.5 billion in retirement benefits, the leaders of the workers appealed to Malacanang.
They claimed they are being illegally separated from the service.
Union members are back to the President. This time, Egardo C. Oredina, former PALEA president; Romeo R. Sauler, former vice president; and Roberto Ramos, Lina Marcelo and Alfredo Espiritu are requesting President Aquino to authenticate the strike vote taken on December 7.
The complainants told the President they are "dues paying members of PALEA and employees of Philippine Airlines."
The five union members (there are six, including Martin Samson who failed to sign the request because he was allegedly sick) said "it appears that the decision to hold the strike vote, if ever one was made, was exercised only by the current PALEA president (Gerry Rivera). Thus, no genuine decision was made by the current board, the policy making body of the union, on the vote."
"(Moreover), no DOLE (Department of Labor and Employment) observers were present to supervise the conduct of the strike vote. The current PALEA president notified the DOLE only on Monday, Dec. 6, a day before the strike vote was conducted," they said.
Nevertheless, the complainants told the President, "This motion is not intended to stop the conduct of any strike that the union may hold, however, that it is based on just and reasonable grounds and conformably to the legal requirements."
The complainants explained that the request or motion is intended to protect and safeguard the welfare of "our members to obviate the strong likelihood that they would unknowingly participate in the conduct of an illegal strike which would result in the forfeiture of their benefits and loss of their employment."
The complainants further told the Chief Executive that "the results of the strike vote will certainly impact on the continued employment of PAL employees as well as their families welfare."
"Considering the exaggerated claims of the current PALEA president Gerardo Rivera that 84 per cent of PAL employees have voted in favor of holding the strike and that he himself has declared that the holding of the strike will be on December 16, it is urgently necessary that the strike vote be authenticated as this is a key requirement prior to the holding of a strike," they said.
In their motion or request submitted to President Aquino on Dec. 13, they said: "A strike vote is a major activity that requires the approval of the board of directors. Hence, it is doubly important that in the ballot there should appear a reference to the board resolution authorizing the conduct of a strike vote."
"Unfortunately," they told President Aquino, "this does not appear in the ballot for the PALEA vote on Nov. 7, 2010"
On that voting, Rivera said the majority of the union members approved to call a strike.
However, they did not make good the threat.
Rivera called for another vote on Dec. 5 but without the approval of the board of directors, according to the complaint.
The five union members doubt that, apart from the lack of board decision to take a strike vote, the general membership is in full agreement with the threat to strike.
Rivera announced after the strike vote on Dec. 5 that 85 per cent of union members approved the strike which is supposed to be called tomorrow, Dec. l6.
They noted that the strike vote was taken after filing an appeal with President Aquino questioning the order of the secretary of labor.
In that order, Labor Secretary Rosalinda Baldoz ruled that PAL’s decision to outsource In-Flight Catering, Airport Services, and Call Center Reservations Operations is "lawful and reasonable."
Up to today, the complainants said, "Gerardo Rivera has not yet released the official results of the strike vote or (sic) submitted a copy thereof to the NCMB, DOLE or to the President."
This suggests that Rivera may not have told the truth when he said higher than 85 percent of the union members voted to call a strike.
The PAL dispute has taken many twists. Management stands pat on its position that it is absolutely necessary to spin-off the three non-core businesses as the only way to survive.
Management and many union members are confused over the alleged strike vote when the order of the secretary of labor is still on appeal with President Aquino.
Meanwhile, close to 400 union members are said to have approached management to say they are accepting the benefit package averaging P1 million for each employee to be retired.
They asked for advances and were given P50,000 each.
When this event reached the ears of Rivera, he charged management with individual bargaining which he said, amounts to union busting.
The alleged violation of the collective bargaining agreement and the labor laws (individual bargaining) forced Rivera to call for the strike vote now being questioned by five union members.
Some union members doubt whether the strike – if it is called at all – may be in accordance with law.
They explained that the secretary of labor has assumed jurisdiction over the dispute and has in fact settled it by issuing an order asking PAL to pay about 2,600 union members who will be retired but will receive total benefits of P2.5 billion.
December 15, 2010
After the secretary of labor issued an order telling the members of the Philippine Airlines Employees Association that they are entitled to P2.5 billion in retirement benefits, the leaders of the workers appealed to Malacanang.
They claimed they are being illegally separated from the service.
Union members are back to the President. This time, Egardo C. Oredina, former PALEA president; Romeo R. Sauler, former vice president; and Roberto Ramos, Lina Marcelo and Alfredo Espiritu are requesting President Aquino to authenticate the strike vote taken on December 7.
The complainants told the President they are "dues paying members of PALEA and employees of Philippine Airlines."
The five union members (there are six, including Martin Samson who failed to sign the request because he was allegedly sick) said "it appears that the decision to hold the strike vote, if ever one was made, was exercised only by the current PALEA president (Gerry Rivera). Thus, no genuine decision was made by the current board, the policy making body of the union, on the vote."
"(Moreover), no DOLE (Department of Labor and Employment) observers were present to supervise the conduct of the strike vote. The current PALEA president notified the DOLE only on Monday, Dec. 6, a day before the strike vote was conducted," they said.
Nevertheless, the complainants told the President, "This motion is not intended to stop the conduct of any strike that the union may hold, however, that it is based on just and reasonable grounds and conformably to the legal requirements."
The complainants explained that the request or motion is intended to protect and safeguard the welfare of "our members to obviate the strong likelihood that they would unknowingly participate in the conduct of an illegal strike which would result in the forfeiture of their benefits and loss of their employment."
The complainants further told the Chief Executive that "the results of the strike vote will certainly impact on the continued employment of PAL employees as well as their families welfare."
"Considering the exaggerated claims of the current PALEA president Gerardo Rivera that 84 per cent of PAL employees have voted in favor of holding the strike and that he himself has declared that the holding of the strike will be on December 16, it is urgently necessary that the strike vote be authenticated as this is a key requirement prior to the holding of a strike," they said.
In their motion or request submitted to President Aquino on Dec. 13, they said: "A strike vote is a major activity that requires the approval of the board of directors. Hence, it is doubly important that in the ballot there should appear a reference to the board resolution authorizing the conduct of a strike vote."
"Unfortunately," they told President Aquino, "this does not appear in the ballot for the PALEA vote on Nov. 7, 2010"
On that voting, Rivera said the majority of the union members approved to call a strike.
However, they did not make good the threat.
Rivera called for another vote on Dec. 5 but without the approval of the board of directors, according to the complaint.
The five union members doubt that, apart from the lack of board decision to take a strike vote, the general membership is in full agreement with the threat to strike.
Rivera announced after the strike vote on Dec. 5 that 85 per cent of union members approved the strike which is supposed to be called tomorrow, Dec. l6.
They noted that the strike vote was taken after filing an appeal with President Aquino questioning the order of the secretary of labor.
In that order, Labor Secretary Rosalinda Baldoz ruled that PAL’s decision to outsource In-Flight Catering, Airport Services, and Call Center Reservations Operations is "lawful and reasonable."
Up to today, the complainants said, "Gerardo Rivera has not yet released the official results of the strike vote or (sic) submitted a copy thereof to the NCMB, DOLE or to the President."
This suggests that Rivera may not have told the truth when he said higher than 85 percent of the union members voted to call a strike.
The PAL dispute has taken many twists. Management stands pat on its position that it is absolutely necessary to spin-off the three non-core businesses as the only way to survive.
Management and many union members are confused over the alleged strike vote when the order of the secretary of labor is still on appeal with President Aquino.
Meanwhile, close to 400 union members are said to have approached management to say they are accepting the benefit package averaging P1 million for each employee to be retired.
They asked for advances and were given P50,000 each.
When this event reached the ears of Rivera, he charged management with individual bargaining which he said, amounts to union busting.
The alleged violation of the collective bargaining agreement and the labor laws (individual bargaining) forced Rivera to call for the strike vote now being questioned by five union members.
Some union members doubt whether the strike – if it is called at all – may be in accordance with law.
They explained that the secretary of labor has assumed jurisdiction over the dispute and has in fact settled it by issuing an order asking PAL to pay about 2,600 union members who will be retired but will receive total benefits of P2.5 billion.
Aquino stops PAL row
By GENALYN D. KABILING
Manila Bulletin
December 15, 2010, 8:30pm
MANILA, Philippines — President Aquino has assumed jurisdiction over the labor conflict in the Philippine Airlines (PAL), ordering its management to suspend a planned retrenchment of its ground crew.
Executive Secretary Paquito Ochoa Jr. said that the President decided to intervene in the PAL labor row since it involves “industries indispensable to national interest.”
Ordered “hold in abeyance” by the President were the implementation of two decisions of the Department of Labor and Employment (DoLE) that allowed PAL management to outsource some of its services to third party service providers as well as lay off some 2,600 employees.
In a three-page order signed “by authority of the President,” Ochoa said it was but “fair and just to afford PAL Employees Association (PALEA) ample opportunity to exhaust legal remedies available under the law.”
“The petition to suspend the effect of mass termination and the notice of strike are hereby consolidated pending determination of the merits," Ochoa said. “The orders dated 15 June 2010 and 29 October 2010 of the Secretary of Labor in the above-entitled case are STAYED.”
Ochoa said PAL management and PALEA have been ordered "to desist from undertaking any action that will aggravate the situation pending the resolution of this petition.”
Presidential Spokesman Edwin Lacierda said the President’s latest intervention in the PAL row meant there will be no layoffs or strikes for the meantime.
“Essentially, it stays two orders of the Secretary of Labor. What it plainly means is that on the part of labor, they will not engage in strikes. On the part of management, there will be no lockout. Everything is on hold,” Lacierda told reporters in the Palace.
“By assuming jurisdiction, the government will intervene and discuss it with both parties. If and when there is no agreement, then the Office of the President will render decision on the petition of PALEA,” he added.
The President earlier assigned Ochoa to review the decisions made by DoLE on the PAL labor case after PALEA sought presidential intervention in the conflict.
Manila Bulletin
December 15, 2010, 8:30pm
MANILA, Philippines — President Aquino has assumed jurisdiction over the labor conflict in the Philippine Airlines (PAL), ordering its management to suspend a planned retrenchment of its ground crew.
Executive Secretary Paquito Ochoa Jr. said that the President decided to intervene in the PAL labor row since it involves “industries indispensable to national interest.”
Ordered “hold in abeyance” by the President were the implementation of two decisions of the Department of Labor and Employment (DoLE) that allowed PAL management to outsource some of its services to third party service providers as well as lay off some 2,600 employees.
In a three-page order signed “by authority of the President,” Ochoa said it was but “fair and just to afford PAL Employees Association (PALEA) ample opportunity to exhaust legal remedies available under the law.”
“The petition to suspend the effect of mass termination and the notice of strike are hereby consolidated pending determination of the merits," Ochoa said. “The orders dated 15 June 2010 and 29 October 2010 of the Secretary of Labor in the above-entitled case are STAYED.”
Ochoa said PAL management and PALEA have been ordered "to desist from undertaking any action that will aggravate the situation pending the resolution of this petition.”
Presidential Spokesman Edwin Lacierda said the President’s latest intervention in the PAL row meant there will be no layoffs or strikes for the meantime.
“Essentially, it stays two orders of the Secretary of Labor. What it plainly means is that on the part of labor, they will not engage in strikes. On the part of management, there will be no lockout. Everything is on hold,” Lacierda told reporters in the Palace.
“By assuming jurisdiction, the government will intervene and discuss it with both parties. If and when there is no agreement, then the Office of the President will render decision on the petition of PALEA,” he added.
The President earlier assigned Ochoa to review the decisions made by DoLE on the PAL labor case after PALEA sought presidential intervention in the conflict.
DoT keeps distance on PAL row
Manila Standard Today
December 15, 2010
by Eileen A. Mencias
SECRETARY Alberto Lim said on Tuesday the Tourism department is keeping its distance from the problems besetting Philippine Airlines.
“There’s nothing we can really do,” Lim said regarding the threat by PAL employees to stage a strike which could hurt the operations of the country’s biggest airline.
“It’s beyond our control...it’s really the private sector that will be affected by it, and (the labor case) is with the (departments of Labor and Transportation),” Lim added.
But the newly-confirmed tourism czar said he was still hopeful that the threatened strike does not push through.
“I hope they do not strike. I hope they come to terms,” he said.
Lim said PAL is already doing its own contingency planning, getting other caterers and linking up with other airlines to get their passengers booked in case the strike pushes through.
“PAL has to take care of its passengers. (But) it’s going to cost them a lot,” Lim said.
PAL earlier said it would implement a restructuring and spin-off program next year after more than 500 PAL union members signified their intention to accept management’s offer of separation pay, which would amount to nearly P1 million for each affected worker.
PAL president Jaime Bautista said the implementation of the mass layoff was based on DoLE’s decision affirming PAL’s prerogative to restructure.
In a statement, PAL said it was doing all it can to prevent any flight disruptions.
“In the unlikely event event of a work stoppage, PAL has the following contingency measures. Engageprofessional service providers, including inflight catering companies, to augment workers not joining the strike; deploy all available manpower and endorse affected passengers to our sister-airline AirPhilexpress, as well as 134 international airline partners,” PAL said.
December 15, 2010
by Eileen A. Mencias
SECRETARY Alberto Lim said on Tuesday the Tourism department is keeping its distance from the problems besetting Philippine Airlines.
“There’s nothing we can really do,” Lim said regarding the threat by PAL employees to stage a strike which could hurt the operations of the country’s biggest airline.
“It’s beyond our control...it’s really the private sector that will be affected by it, and (the labor case) is with the (departments of Labor and Transportation),” Lim added.
But the newly-confirmed tourism czar said he was still hopeful that the threatened strike does not push through.
“I hope they do not strike. I hope they come to terms,” he said.
Lim said PAL is already doing its own contingency planning, getting other caterers and linking up with other airlines to get their passengers booked in case the strike pushes through.
“PAL has to take care of its passengers. (But) it’s going to cost them a lot,” Lim said.
PAL earlier said it would implement a restructuring and spin-off program next year after more than 500 PAL union members signified their intention to accept management’s offer of separation pay, which would amount to nearly P1 million for each affected worker.
PAL president Jaime Bautista said the implementation of the mass layoff was based on DoLE’s decision affirming PAL’s prerogative to restructure.
In a statement, PAL said it was doing all it can to prevent any flight disruptions.
“In the unlikely event event of a work stoppage, PAL has the following contingency measures. Engageprofessional service providers, including inflight catering companies, to augment workers not joining the strike; deploy all available manpower and endorse affected passengers to our sister-airline AirPhilexpress, as well as 134 international airline partners,” PAL said.
Aquino assumes jurisdiction over PAL row
By Lira Dalangin-Fernandez INQUIRER.net First Posted 15:34:00 12/15/2010
President Benigno Aquino III has assumed jurisdiction over the labor dispute at the Philippine Airlines, which temporarily suspended the implementation of the layoff plan by management that had been approved by the Department of Labor and Employment (DoLE).
MANILA, Philippines – President Benigno Aquino III has assumed jurisdiction over the labor dispute at the Philippine Airlines, which temporarily suspended the implementation of the layoff plan by management that had been approved by the Department of Labor and Employment (DoLE).
Lawyer Marlon Manuel, one of the legal counsels of the PAL Employees Union (PALEA), said they received copy of the order from the Office of the President imposing a “stay order” on the two decisions by DoLE to retrench some 2,600 ground employees of the flag carrier.
At the same time, Manuel said the President directed the management and PALEA to “desist from undertaking any action that will aggravate
the situation pending the resolution of this petition.”
In effect, while the order prohibits PAL management from laying off
employees, it also restrains the union members from proceeding with
their planned strike.
PALEA members voted last week to hold a strike amid the ongoing
retrenchment but have yet to submit the results of the voting to
DoLE.
“In essence, it’s a temporary victory for the workers because the decision of the Secretary of Labor giving the go-signal to retrench the workers will not be implemented for now,” Manuel told INQUIRER.net in an interview.
INQUIRER.net tried to get a reaction from PAL management through its spokesperson Cielo Villaluna but she has not responded as of posting time.
The stay order will cover the decisions of the DoLE dated Oct. 29, 2010 and June 15, 2010.
The June 15 order, issued by then acting Labor Secretary Romeo Lagman, said that PAL’s plan to outsource its three units to third party service providers was “based on lawful ground and all in a valid
exercise of managerial prerogative.”
The October 29 order, gives the go-signal for the layoff of the 2,600 employees, who will be entitled to additional gratuity of P50,000 per employee and 125 percent separation pay instead of 100 percent. Other entitlements include allowing vacation leave and sick leave balances to be convertible to cash, their absorption to the respective service providers for one year, among others.
“We find the outsourcing of services and closure of the Inflight Catering, Airport Services, and Call Center Reservation Operations in
Philippine Airlines to be a just, reasonable, humane, and lawful
exercise of its management prerogative to reorganize the corporate
structure for purposes of viability of its operations, subject to entitlement,” according to the order.
Last month PALEA submitted a petition to the Office of the President
asking it to review both decisions, following the breakdown in conciliation talks with the management.
Manuel said the President’s stay order on the two DoLE decisions would take effect “pending determination of the merits of the two decisions.”
“We hold in abeyance the implementation of subject Order to give way
to the overriding interests of the parties,” Manuel said, quoting a portion of the order.
Manuel said it was within the powers of the President to assume
jurisdiction over the labor dispute.
“Under Article 263 of the Labor Code, it’s part of the extraordinary powers of the President, that he can assume jurisdiction over cases like this,” he added.
Manuel said the order did not give a time frame for the stay order, to
give enough time for the parties to arrive at an agreement. Meetings of the two parties will also be mediated by the Office the President, he said.
President Benigno Aquino III has assumed jurisdiction over the labor dispute at the Philippine Airlines, which temporarily suspended the implementation of the layoff plan by management that had been approved by the Department of Labor and Employment (DoLE).
MANILA, Philippines – President Benigno Aquino III has assumed jurisdiction over the labor dispute at the Philippine Airlines, which temporarily suspended the implementation of the layoff plan by management that had been approved by the Department of Labor and Employment (DoLE).
Lawyer Marlon Manuel, one of the legal counsels of the PAL Employees Union (PALEA), said they received copy of the order from the Office of the President imposing a “stay order” on the two decisions by DoLE to retrench some 2,600 ground employees of the flag carrier.
At the same time, Manuel said the President directed the management and PALEA to “desist from undertaking any action that will aggravate
the situation pending the resolution of this petition.”
In effect, while the order prohibits PAL management from laying off
employees, it also restrains the union members from proceeding with
their planned strike.
PALEA members voted last week to hold a strike amid the ongoing
retrenchment but have yet to submit the results of the voting to
DoLE.
“In essence, it’s a temporary victory for the workers because the decision of the Secretary of Labor giving the go-signal to retrench the workers will not be implemented for now,” Manuel told INQUIRER.net in an interview.
INQUIRER.net tried to get a reaction from PAL management through its spokesperson Cielo Villaluna but she has not responded as of posting time.
The stay order will cover the decisions of the DoLE dated Oct. 29, 2010 and June 15, 2010.
The June 15 order, issued by then acting Labor Secretary Romeo Lagman, said that PAL’s plan to outsource its three units to third party service providers was “based on lawful ground and all in a valid
exercise of managerial prerogative.”
The October 29 order, gives the go-signal for the layoff of the 2,600 employees, who will be entitled to additional gratuity of P50,000 per employee and 125 percent separation pay instead of 100 percent. Other entitlements include allowing vacation leave and sick leave balances to be convertible to cash, their absorption to the respective service providers for one year, among others.
“We find the outsourcing of services and closure of the Inflight Catering, Airport Services, and Call Center Reservation Operations in
Philippine Airlines to be a just, reasonable, humane, and lawful
exercise of its management prerogative to reorganize the corporate
structure for purposes of viability of its operations, subject to entitlement,” according to the order.
Last month PALEA submitted a petition to the Office of the President
asking it to review both decisions, following the breakdown in conciliation talks with the management.
Manuel said the President’s stay order on the two DoLE decisions would take effect “pending determination of the merits of the two decisions.”
“We hold in abeyance the implementation of subject Order to give way
to the overriding interests of the parties,” Manuel said, quoting a portion of the order.
Manuel said it was within the powers of the President to assume
jurisdiction over the labor dispute.
“Under Article 263 of the Labor Code, it’s part of the extraordinary powers of the President, that he can assume jurisdiction over cases like this,” he added.
Manuel said the order did not give a time frame for the stay order, to
give enough time for the parties to arrive at an agreement. Meetings of the two parties will also be mediated by the Office the President, he said.
Tuesday, December 14, 2010
PAL warns of overcapacity on Air Asia entry
Monday, 13 December 2010 00:00
The Manila Times
BY DARWIN G. AMOJELAR SENIOR REPORTER
PHILIPPINE Airlines (PAL) warned that the entry of Air Asia would create overcapacity in the local market.
Jaime Bautista, PAL president and chief operating officer, said he is concerned about the “overcapacity” in the market that would lead to a “price war.”
”It [price war] may lead to huge losses for everybody,” he said.
He however insists that PAL is open to competition.
PAL has no operation in Clark, but the flag-carrier may look to the alternative airport in the future, Bautista said.
PAL held a 43 percent share in the domestic market in the fiscal year ending March this year and 30.8 percent for Asia and Australia. Work stoppages however loom at Asia’s oldest airline, as the majority of the airline’s workforce voted to hold a strike.
To protect its market share, “We have to offer competitive fares,” particularly AirphilExpress, Bautista said, referring to PAL’s budget unit.
In October, AirPhilExpress began flights to Singapore using Airbus A320 aircraft.
AirphilExpress will spend $250 million to acquire 18-brand new A320s for a period of two and a half years.
At present, AirphilExpress has three A320s and is expecting three more units by yearend.
For next year and 2012, AirphilExpress expects another 12 A320s for delivery.
The low-cost carrier (LCC) plans to fly to Iloilo, Davao, Puerto Princesa, Baguio, Marinduque, Zamboanga, Legazpi, Tagbilaran for domestic routes, and to South Korea and Bangkok for international flights.
Last week, Air Asia announced that it partnered with Antonio Cojuangco, a former chairman of Philippine Long Distance Telephone Co. (PLDT) and cousin of President Benigno Aquino 3rd, to form a budget airline that will operate in Clark, Pampanga.
Air Asia flies to Kuala Lumpur and Kota Kinabalu from Clark.
Porvenir Porciuncula, deputy executive director of the Civil Aeronautics Board (CAB), said Tony Fernandes,
Air Asia’s chief executive, and Cojuangco recently met with officials of the Department of Transportation and Communications (DOTC) to present their planned airline operation in Clark.
Porciuncula said that Air Asia would take a 40 percent stake, while Cojuangco would assume the remaining 60 percent.
The CAB official said Air Asia plans to start domestic and regional operations from Clark next year.
”They are planning to fly from Clark, but they can go to other do mestic destinations other than Clark. It will give a better access in the market of Air Asia,” Porciuncula said.
Air Asia had launched similar budget subsidiaries in Thailand, Indonesia, with a joint venture in Vietnam also in the works.
Air Asia operates within home-base Malaysia, as well as in China, Southeast Asia and the Asian subcontinent.
Data from Centre for Asia Pacific Aviation showed that Air Asia’s fleet stood at 152 A320s as of March this year.
Of this total, 48 are in service and 104 are on order.
Besides Air Asia, Tiger Airways Holdings Ltd. will also operate in the Philippines under a marketing arrangement with local carrier Southeast Asian Airlines (Seair).
The budget unit of Singapore Airlines, Tiger will also lease two A320s to Seair that will be used to expand its regional operation.
Other budget carriers that operate from Clark are Cebu Pacific and Asian Airlines.
The Manila Times
BY DARWIN G. AMOJELAR SENIOR REPORTER
PHILIPPINE Airlines (PAL) warned that the entry of Air Asia would create overcapacity in the local market.
Jaime Bautista, PAL president and chief operating officer, said he is concerned about the “overcapacity” in the market that would lead to a “price war.”
”It [price war] may lead to huge losses for everybody,” he said.
He however insists that PAL is open to competition.
PAL has no operation in Clark, but the flag-carrier may look to the alternative airport in the future, Bautista said.
PAL held a 43 percent share in the domestic market in the fiscal year ending March this year and 30.8 percent for Asia and Australia. Work stoppages however loom at Asia’s oldest airline, as the majority of the airline’s workforce voted to hold a strike.
To protect its market share, “We have to offer competitive fares,” particularly AirphilExpress, Bautista said, referring to PAL’s budget unit.
In October, AirPhilExpress began flights to Singapore using Airbus A320 aircraft.
AirphilExpress will spend $250 million to acquire 18-brand new A320s for a period of two and a half years.
At present, AirphilExpress has three A320s and is expecting three more units by yearend.
For next year and 2012, AirphilExpress expects another 12 A320s for delivery.
The low-cost carrier (LCC) plans to fly to Iloilo, Davao, Puerto Princesa, Baguio, Marinduque, Zamboanga, Legazpi, Tagbilaran for domestic routes, and to South Korea and Bangkok for international flights.
Last week, Air Asia announced that it partnered with Antonio Cojuangco, a former chairman of Philippine Long Distance Telephone Co. (PLDT) and cousin of President Benigno Aquino 3rd, to form a budget airline that will operate in Clark, Pampanga.
Air Asia flies to Kuala Lumpur and Kota Kinabalu from Clark.
Porvenir Porciuncula, deputy executive director of the Civil Aeronautics Board (CAB), said Tony Fernandes,
Air Asia’s chief executive, and Cojuangco recently met with officials of the Department of Transportation and Communications (DOTC) to present their planned airline operation in Clark.
Porciuncula said that Air Asia would take a 40 percent stake, while Cojuangco would assume the remaining 60 percent.
The CAB official said Air Asia plans to start domestic and regional operations from Clark next year.
”They are planning to fly from Clark, but they can go to other do mestic destinations other than Clark. It will give a better access in the market of Air Asia,” Porciuncula said.
Air Asia had launched similar budget subsidiaries in Thailand, Indonesia, with a joint venture in Vietnam also in the works.
Air Asia operates within home-base Malaysia, as well as in China, Southeast Asia and the Asian subcontinent.
Data from Centre for Asia Pacific Aviation showed that Air Asia’s fleet stood at 152 A320s as of March this year.
Of this total, 48 are in service and 104 are on order.
Besides Air Asia, Tiger Airways Holdings Ltd. will also operate in the Philippines under a marketing arrangement with local carrier Southeast Asian Airlines (Seair).
The budget unit of Singapore Airlines, Tiger will also lease two A320s to Seair that will be used to expand its regional operation.
Other budget carriers that operate from Clark are Cebu Pacific and Asian Airlines.
‘Back-channel’ talks on PAL strike
Monday, 13 December 2010 00:00
The Manila Times
The Department of Transportation and Communications (DOTC) over the weekend announced that they are now conducting back-channel efforts to avoid the looming strike of employees of flag-carrier Philippine Airlines. DOTC spokesman Dante Velasco revealed in an interview aired over dzBB radio that they are conducting the efforts to stop the strike especially this holiday season for the sake of the passengers.
“We are continuing our back-channel efforts. We remain hopeful no strike will happen,” he said.
Velasco, however, declined to give details on the back-channel efforts, but noted that Malacañang already offered to broker mediation talks on the matter.
He added that government is confident PAL can execute its contingency measures if the strike pushes through.
“PAL has said it is ready to undertake contingency measures,” Velasco said.
Earlier, the PAL Employees Association (Palea) disclosed that 86 percent of its members who took part in a strike vote early last week were in favor of a strike to protest what the union called management’s unfair labor practices.
“The 86 percent vote is overwhelming given that we had just 24 hours to inform members of the holding of the strike ballot,” Palea President Gerry Rivera said.
He added that the union’s membership of 2,600 participated in the strike vote.
But Rivera appealed to the public for understanding.
“We understand that a strike at Philippine Airlines may inconvenience the public. But we also believe that the vast majority of the public are workers and their families who will benefit from Palea’s fight for job security and labor rights,” he added.
While PAL management reassured its passengers that PAL flights remain normal, it criticized Palea for raising fears about the strike.
“Pronouncements made by the Palea that they will stage a strike during the holidays reveal their intention to sow panic and anxiety to thousands of PAL passengers who have firmed up travel plans to spend Christmas with their loved ones,” the airlines said in a press release on its website.
No effect on flights
PAL’s Friday press release also said that employees who participated in the Palea strike vote are “ground workers mostly assigned at the ground-handling, catering and call center offices.”
“While their jobs are important, these workers play support to flight operations. They are not directly engaged in flying or maintaining the aircraft. The pilots, cabin crew and mechanics/maintenance workers are not part of the planned work stoppage,” PAL added.
The airline said that its labor case with Palea is being reviewed by Malacañang.
PAL added that they hope the union will heed Executive Secretary Paquito Ochoa Jr.’s appeal to exercise restraint by deferring any mass action at this time, and allow the Palace to decide on the case.
PAL spokesman Cielo Villaluna voiced high hopes for mediation talks to be brokered by Malacañang on the issue.
She said they are buoyed by the openness of Palea take part in the mediation talks.
“Kami ay naniniwala na magkakaroon ng kalutasan [We believe that there will be a solution]. We are hoping and praying this conciliation meeting brokered by Malacañang will commence anytime soon,” she said in an interview on dwIZ radio.
Villaluna added that despite the Palea’s recent strike vote, PAL employees had been “professional enough” to continue reporting for work.
FRANCIS EARL A. CUETO
The Manila Times
The Department of Transportation and Communications (DOTC) over the weekend announced that they are now conducting back-channel efforts to avoid the looming strike of employees of flag-carrier Philippine Airlines. DOTC spokesman Dante Velasco revealed in an interview aired over dzBB radio that they are conducting the efforts to stop the strike especially this holiday season for the sake of the passengers.
“We are continuing our back-channel efforts. We remain hopeful no strike will happen,” he said.
Velasco, however, declined to give details on the back-channel efforts, but noted that Malacañang already offered to broker mediation talks on the matter.
He added that government is confident PAL can execute its contingency measures if the strike pushes through.
“PAL has said it is ready to undertake contingency measures,” Velasco said.
Earlier, the PAL Employees Association (Palea) disclosed that 86 percent of its members who took part in a strike vote early last week were in favor of a strike to protest what the union called management’s unfair labor practices.
“The 86 percent vote is overwhelming given that we had just 24 hours to inform members of the holding of the strike ballot,” Palea President Gerry Rivera said.
He added that the union’s membership of 2,600 participated in the strike vote.
But Rivera appealed to the public for understanding.
“We understand that a strike at Philippine Airlines may inconvenience the public. But we also believe that the vast majority of the public are workers and their families who will benefit from Palea’s fight for job security and labor rights,” he added.
While PAL management reassured its passengers that PAL flights remain normal, it criticized Palea for raising fears about the strike.
“Pronouncements made by the Palea that they will stage a strike during the holidays reveal their intention to sow panic and anxiety to thousands of PAL passengers who have firmed up travel plans to spend Christmas with their loved ones,” the airlines said in a press release on its website.
No effect on flights
PAL’s Friday press release also said that employees who participated in the Palea strike vote are “ground workers mostly assigned at the ground-handling, catering and call center offices.”
“While their jobs are important, these workers play support to flight operations. They are not directly engaged in flying or maintaining the aircraft. The pilots, cabin crew and mechanics/maintenance workers are not part of the planned work stoppage,” PAL added.
The airline said that its labor case with Palea is being reviewed by Malacañang.
PAL added that they hope the union will heed Executive Secretary Paquito Ochoa Jr.’s appeal to exercise restraint by deferring any mass action at this time, and allow the Palace to decide on the case.
PAL spokesman Cielo Villaluna voiced high hopes for mediation talks to be brokered by Malacañang on the issue.
She said they are buoyed by the openness of Palea take part in the mediation talks.
“Kami ay naniniwala na magkakaroon ng kalutasan [We believe that there will be a solution]. We are hoping and praying this conciliation meeting brokered by Malacañang will commence anytime soon,” she said in an interview on dwIZ radio.
Villaluna added that despite the Palea’s recent strike vote, PAL employees had been “professional enough” to continue reporting for work.
FRANCIS EARL A. CUETO
PAL opposes entry of Malaysian carrier
Manila Standard Today
December 13, 2010
by Jeremiah F. de Guzman and Joyce Pangco Pañares
FLAG carrier Philippine Airlines said Friday the country no longer needed another airline as the existing capacity was enough to serve the market.
A new airline formed by Malaysian carrier Air Asia and telecoms heir Antonio Cojuangco would only introduce overcapacity here and result in a price war, PAL president Jaime Bautista said.
“If there will be overcapacity, there will be a price war which will result [in] possible losses [to] the airlines,” Bautista said.
“But as an airline, we should welcome competition because we cannot prevent it.”
The Board of Investments earlier said Air Asia was forming a local subsidiary with Cojuangco to fly to select domestic routes. The planned Philippine subsidiary should start commercial operations next year.
Cojuangco was chairman and chief executive of Philippine Airlines during the early Cory Aquino years, and after his group won the bidding for the carrier’s privatization.
The Malaysian carrier began offering regional flights to and from the Philippines out of Clark in April 2005.
Air Asia chief executive Tony Fernandes earlier told Bloomberg that Air Asia, Asia’s largest budget airline with 100 planes in its fleet, planned to acquire as many as 12 planes a year and was seeking opportunities in the Philippines, Vietnam, China and India.
PAL had earlier said there were over 47.4 million total seats available last year but only 23 percent or 10.97 million were used.
The flag carrier has also opposed an open-skies policy, saying the number of available seats on foreign and local carriers still exceeded the tourist count in the country.
Five airlines now fly to domestic routes: Philippine Airlines, its Psister airline AirPhil Express, the Gokongwei-led Cebu Air Inc., Southeast Asian Airline and Zest Air.
Meanwhile, an official said Friday local airlines would still have the exclusive right to fly to domestic routes despite a draft executive order championing a pocket open-skies policy.
He said the draft was with President Benigno Aquino III and would likely be released in the first quarter next year.
“There will be no cabotage [the transport of goods or passengers between two points in the same country by a vessel or an aircraft registered in another country],” said the official who asked not to be named because he was not authorized to release the details of the draft executive order.
“Domestic flights will still be exclusively for local airlines. The pocket open-skies will not be as bad as what local airlines have feared.”
Mr. Aquino last month said the country would start liberalizing its civil aviation industry.
“Our national development requires promoting an open and competitive international aviation sector that enables Philippine and foreign air carriers to expand their operations ….” he said
Executive Order 219 provided the framework for liberalizing the country’s air policy as early as 1995, Mr. Aquino said.
Tourism Secretary Alberto Lim had earlier submitted a memo to Finance chief Cesar Purisima citing the recommendations for a pocket open-skies policy by an inter-agency task force composed of the Transport, Trade and Justice Departments and the National Economic and Development Authority.
A separate memo to Mr. Aquino from the Cabinet underscored the importance of liberalizing the country’s air services to “give substance to the administration’s message that the Philippines is open for business.”
December 13, 2010
by Jeremiah F. de Guzman and Joyce Pangco Pañares
FLAG carrier Philippine Airlines said Friday the country no longer needed another airline as the existing capacity was enough to serve the market.
A new airline formed by Malaysian carrier Air Asia and telecoms heir Antonio Cojuangco would only introduce overcapacity here and result in a price war, PAL president Jaime Bautista said.
“If there will be overcapacity, there will be a price war which will result [in] possible losses [to] the airlines,” Bautista said.
“But as an airline, we should welcome competition because we cannot prevent it.”
The Board of Investments earlier said Air Asia was forming a local subsidiary with Cojuangco to fly to select domestic routes. The planned Philippine subsidiary should start commercial operations next year.
Cojuangco was chairman and chief executive of Philippine Airlines during the early Cory Aquino years, and after his group won the bidding for the carrier’s privatization.
The Malaysian carrier began offering regional flights to and from the Philippines out of Clark in April 2005.
Air Asia chief executive Tony Fernandes earlier told Bloomberg that Air Asia, Asia’s largest budget airline with 100 planes in its fleet, planned to acquire as many as 12 planes a year and was seeking opportunities in the Philippines, Vietnam, China and India.
PAL had earlier said there were over 47.4 million total seats available last year but only 23 percent or 10.97 million were used.
The flag carrier has also opposed an open-skies policy, saying the number of available seats on foreign and local carriers still exceeded the tourist count in the country.
Five airlines now fly to domestic routes: Philippine Airlines, its Psister airline AirPhil Express, the Gokongwei-led Cebu Air Inc., Southeast Asian Airline and Zest Air.
Meanwhile, an official said Friday local airlines would still have the exclusive right to fly to domestic routes despite a draft executive order championing a pocket open-skies policy.
He said the draft was with President Benigno Aquino III and would likely be released in the first quarter next year.
“There will be no cabotage [the transport of goods or passengers between two points in the same country by a vessel or an aircraft registered in another country],” said the official who asked not to be named because he was not authorized to release the details of the draft executive order.
“Domestic flights will still be exclusively for local airlines. The pocket open-skies will not be as bad as what local airlines have feared.”
Mr. Aquino last month said the country would start liberalizing its civil aviation industry.
“Our national development requires promoting an open and competitive international aviation sector that enables Philippine and foreign air carriers to expand their operations ….” he said
Executive Order 219 provided the framework for liberalizing the country’s air policy as early as 1995, Mr. Aquino said.
Tourism Secretary Alberto Lim had earlier submitted a memo to Finance chief Cesar Purisima citing the recommendations for a pocket open-skies policy by an inter-agency task force composed of the Transport, Trade and Justice Departments and the National Economic and Development Authority.
A separate memo to Mr. Aquino from the Cabinet underscored the importance of liberalizing the country’s air services to “give substance to the administration’s message that the Philippines is open for business.”
Monday, December 13, 2010
PAL seen to surpass 10M passenger count this year
Sunday, 12 December 2010 17:51 Lenie Lectura / Reporter
Business Mirror
CARRIER Philippine Airlines (PAL) expects to surpass its 10-million target number of passengers for the year owing to its cheap and affordable fare rates.
Its president, Jaime Bautista, said on Friday that PAL is “moving to achieve the 10 million” and by the end of the year the flag carrier would have flown more than 10 million passengers from 9.2 million last year.
“Passenger traffic is going to be a little over our target by the end of the year,” he said.
Last year, PAL carried an average of 25,630 passengers per day. This number goes up by as much as 30 percent with the onset of the Christmas peak season as thousands of tourists, balikbayan and overseas Filipino workers flock home to spend Christmas with their families.
Bautista said the market is “improving” as more passengers continue to choose the airplane as a preferred mode of transportation when traveling. “So far, we are doing good. Our revenue enhancement programs are doing well. We continue to offer promo fares. The programs we undertake impact on our revenues.”
PAL posted modest gains of $28.2 million in the second quarter of its fiscal year ending March. Revenues amounted $399.5 million, up by 33 percent from the $299.7 million earnings posted in 2009.
It reported increases in passenger (26 percent) and cargo (57 percent) revenues from international operations, with an improvement as well in the yields generated from passenger seat offerings.
To remain viable, Bautista said the flag carrier will focus on continuing its cost control initiatives as the passenger and cargo markets as well as fuel and maintenance costs remain very volatile.
Last week, PAL announced that it has identified contingency measures in the unlikely event of a work stoppage.
These include the hiring of professional service providers, including inflight catering companies, to augment workers not joining the strike; deployment all available manpower, including supervisors and managers who are more than capable of manning critical frontline posts; and endorsement of affected passengers to its sister-airline, Airphilexpress, as well as 134 international airline partners.
Employees who participated in a recent PAL Employees Association (Palea) strike vote are ground workers assigned at the ground-handling, catering and call center offices.
While their jobs are important, these workers play support to flight operations. They are not directly engaged in flying or maintaining the aircraft. The pilots, cabin crew and mechanics or maintenance workers of Lufthansa Technik Philippines are not part of the planned work stoppage.
The PAL-PALEA labor dispute is currently being reviewed by Malacañang. PAL hopes the union will heed Executive Secretary Paquito Ochoa’s appeal to exercise restraint by deferring any mass action at this time and allow the Palace to decide on the case.
PAL said legal avenues can still be exhausted in resolving the management-labor differences. It also assured passengers that all PAL flights are normal and continue to operate according to published schedules.
Business Mirror
CARRIER Philippine Airlines (PAL) expects to surpass its 10-million target number of passengers for the year owing to its cheap and affordable fare rates.
Its president, Jaime Bautista, said on Friday that PAL is “moving to achieve the 10 million” and by the end of the year the flag carrier would have flown more than 10 million passengers from 9.2 million last year.
“Passenger traffic is going to be a little over our target by the end of the year,” he said.
Last year, PAL carried an average of 25,630 passengers per day. This number goes up by as much as 30 percent with the onset of the Christmas peak season as thousands of tourists, balikbayan and overseas Filipino workers flock home to spend Christmas with their families.
Bautista said the market is “improving” as more passengers continue to choose the airplane as a preferred mode of transportation when traveling. “So far, we are doing good. Our revenue enhancement programs are doing well. We continue to offer promo fares. The programs we undertake impact on our revenues.”
PAL posted modest gains of $28.2 million in the second quarter of its fiscal year ending March. Revenues amounted $399.5 million, up by 33 percent from the $299.7 million earnings posted in 2009.
It reported increases in passenger (26 percent) and cargo (57 percent) revenues from international operations, with an improvement as well in the yields generated from passenger seat offerings.
To remain viable, Bautista said the flag carrier will focus on continuing its cost control initiatives as the passenger and cargo markets as well as fuel and maintenance costs remain very volatile.
Last week, PAL announced that it has identified contingency measures in the unlikely event of a work stoppage.
These include the hiring of professional service providers, including inflight catering companies, to augment workers not joining the strike; deployment all available manpower, including supervisors and managers who are more than capable of manning critical frontline posts; and endorsement of affected passengers to its sister-airline, Airphilexpress, as well as 134 international airline partners.
Employees who participated in a recent PAL Employees Association (Palea) strike vote are ground workers assigned at the ground-handling, catering and call center offices.
While their jobs are important, these workers play support to flight operations. They are not directly engaged in flying or maintaining the aircraft. The pilots, cabin crew and mechanics or maintenance workers of Lufthansa Technik Philippines are not part of the planned work stoppage.
The PAL-PALEA labor dispute is currently being reviewed by Malacañang. PAL hopes the union will heed Executive Secretary Paquito Ochoa’s appeal to exercise restraint by deferring any mass action at this time and allow the Palace to decide on the case.
PAL said legal avenues can still be exhausted in resolving the management-labor differences. It also assured passengers that all PAL flights are normal and continue to operate according to published schedules.
PAL warns against entry of foreign airlines
Cutthroat pricing seen causing heavy losses
By Paolo Montecillo
Philippine Daily Inquirer
First Posted 21:43:00 12/12/2010
MANILA, Philippines—The entry of major foreign carriers into the Philippine market may cause disruptions in the local air travel industry, the country’s flag carrier Philippine Airlines (PAL) said.
It said the recent announcements of regional aviation giants such as Singapore’s Tiger Airways and Malaysia’s AirAsia to enter the Philippine market might result in cutthroat pricing losses for companies such as PAL and other players in the country.
“The question is, will the market be big enough for more players as big as them,” PAL president and chief operating officer Jaime Bautista said.
He warned of the possibility of overcapacity in the industry where there would be too many airlines for too few passengers.
“If there is a price war, this will mean losses for all airlines in the country, not just PAL,” Bautista said.
At the moment, he said he believed that the local industry was adequately served by local carriers and other foreign airlines that fly to the Philippines.
He said that while the increased competition and lower prices would be good for passengers, the lower profits for airline companies might lead to a decline in new investments and the slowdown in the industry’s expansion.
Constitutional restrictions limit foreign ownership in transportation companies, which have congressional franchises, to 40 percent. As a result, partnering with local entities is the only way for foreign groups to gain a foothold in the local industry.
Earlier this month, Singapore’s Tiger Airways announced that it would let local carrier Southeast Asian Airlines (SEAir) to lease two of its Airbus A320 jets as part of a marketing deal between the two firms.
Under the arrangement, the Singaporean budget carrier will also be allowed to sell SEAir flights on the Tiger website.
Tiger Airways is partly owned by government-backed Singapore Airways and is one of the region’s largest low-cost airlines.
By Paolo Montecillo
Philippine Daily Inquirer
First Posted 21:43:00 12/12/2010
MANILA, Philippines—The entry of major foreign carriers into the Philippine market may cause disruptions in the local air travel industry, the country’s flag carrier Philippine Airlines (PAL) said.
It said the recent announcements of regional aviation giants such as Singapore’s Tiger Airways and Malaysia’s AirAsia to enter the Philippine market might result in cutthroat pricing losses for companies such as PAL and other players in the country.
“The question is, will the market be big enough for more players as big as them,” PAL president and chief operating officer Jaime Bautista said.
He warned of the possibility of overcapacity in the industry where there would be too many airlines for too few passengers.
“If there is a price war, this will mean losses for all airlines in the country, not just PAL,” Bautista said.
At the moment, he said he believed that the local industry was adequately served by local carriers and other foreign airlines that fly to the Philippines.
He said that while the increased competition and lower prices would be good for passengers, the lower profits for airline companies might lead to a decline in new investments and the slowdown in the industry’s expansion.
Constitutional restrictions limit foreign ownership in transportation companies, which have congressional franchises, to 40 percent. As a result, partnering with local entities is the only way for foreign groups to gain a foothold in the local industry.
Earlier this month, Singapore’s Tiger Airways announced that it would let local carrier Southeast Asian Airlines (SEAir) to lease two of its Airbus A320 jets as part of a marketing deal between the two firms.
Under the arrangement, the Singaporean budget carrier will also be allowed to sell SEAir flights on the Tiger website.
Tiger Airways is partly owned by government-backed Singapore Airways and is one of the region’s largest low-cost airlines.
Sunday, December 12, 2010
Strikers will be fired, PAL warns
Manila Standard Today
December 11, 2010
by Jeremiah F. de Guzman
PHILIPPINE Airlines will fire and cancel the benefits of all ground employees who will strike because that action would be illegal, company president Jaime Bautista said Friday.
The Labor Department had already taken up and decided on the issue raised by the workers against the airline, Bautista said.
“We don’t think there will be a strike because if they do so, it is an illegal strike,” he said.
“They can be terminated and their benefits will be lost.
But the Philippine Airlines Employees’ Association said the planned strike was over a separate complaint of union busting by the management, and that 75 percent of the votes cast by the union’s 2,700 members Wednesday showed that 86 percent favored a strike.
“That dispute has not been resolved or assumed,” union president Gerardo Rivera said.
“There is nothing more to negotiate that has already been decided by the Labor Department. The decision is very costly for us and very good for the union.”
Bautista said the carrier no longer was open to negotiations with the ground workers. The airline was ready for any strike.
“We have already made arrangements with several service providers to help us if a strike takes place,” he said.
“We don’t really need these employees because we can get them from the service providers.”
Meanwhile, Bautista said Philippine Airlines and the Board of Airline Regulators comprising foreign airlines will pay airport Customs staff P250,000 each in overtime covering five months.
PAL will pay P125,000 and the foreign airlines the balance, he said.
Customs Commissioner Angelito Alvarez said a check was being prepared, and that the employees could be paid by Monday.
“We got a breakthrough in our discussions with PAL,” Alvarez said.
“There has been a positive development. PAL has already prepared the check that will be released today or Monday morning at the latest.”
The airport staff are owed 11 months more, and that amount will be discussed to determine exactly how much is due them. With Eric B. Apolonio
December 11, 2010
by Jeremiah F. de Guzman
PHILIPPINE Airlines will fire and cancel the benefits of all ground employees who will strike because that action would be illegal, company president Jaime Bautista said Friday.
The Labor Department had already taken up and decided on the issue raised by the workers against the airline, Bautista said.
“We don’t think there will be a strike because if they do so, it is an illegal strike,” he said.
“They can be terminated and their benefits will be lost.
But the Philippine Airlines Employees’ Association said the planned strike was over a separate complaint of union busting by the management, and that 75 percent of the votes cast by the union’s 2,700 members Wednesday showed that 86 percent favored a strike.
“That dispute has not been resolved or assumed,” union president Gerardo Rivera said.
“There is nothing more to negotiate that has already been decided by the Labor Department. The decision is very costly for us and very good for the union.”
Bautista said the carrier no longer was open to negotiations with the ground workers. The airline was ready for any strike.
“We have already made arrangements with several service providers to help us if a strike takes place,” he said.
“We don’t really need these employees because we can get them from the service providers.”
Meanwhile, Bautista said Philippine Airlines and the Board of Airline Regulators comprising foreign airlines will pay airport Customs staff P250,000 each in overtime covering five months.
PAL will pay P125,000 and the foreign airlines the balance, he said.
Customs Commissioner Angelito Alvarez said a check was being prepared, and that the employees could be paid by Monday.
“We got a breakthrough in our discussions with PAL,” Alvarez said.
“There has been a positive development. PAL has already prepared the check that will be released today or Monday morning at the latest.”
The airport staff are owed 11 months more, and that amount will be discussed to determine exactly how much is due them. With Eric B. Apolonio
The Grinch who stole Christmas at Naia
Saturday, 11 December 2010 18:32 Recto L. Mercene / Reporter
Business Mirror
A badly needed truce, for now, could yet ease the soaring tensions at the country’s premier international airport, where the onset of the holiday season means a dramatic increase in flights and arrivals and, consequently, more pressures on people and infrastructure.
A 16-month tussle between the Airline Operators Council (AOC) and the airport branch of the Bureau of Customs (BOC) appears to have ended harmoniously after flag carrier Philippine Airlines (Pal) released on Friday a P25-million check worth of five months’ payment for overtime services.
PAL president and CEO Jaime Bautista said they have agreed to pay “as a gesture of goodwill,” and so that the BOC personnel could enjoy Christmas.
“The Court of Appeals has ruled in favor of the Board of Airline Representatives [BAR] that the air carriers do not have to pay, but we came across because we’re aware that some customs employees worked for it,” Bautista explained in an interview at PAL headquarters in Pasay City on Friday. Earlier, the airline group had committed to pay at least five months of the 16-month period in dispute.
BAR, however, said the airlines believe they are overcharged in the P10 million a month billed by the BOC to the carriers, though BAR did not give an estimate on how much the government workers should charge the carriers.
Friday’s announcement of a payment came just in time to avert a disaster at the premier airport that would have had dire implications for the Aquino administration, which is mightily trying to woo investors in the tourism sector.
The AOC has cried foul over the recent withdrawal of services during arrivals at night, when Customs employees did not appear for work to board arriving aircraft, as the law dictates, or simply did not report for duty after office hours, and during weekends and holidays.
The AOC viewed the act as a form of harassment so that airline passengers would lay the blame for late services on the air carriers.
In some instances, Customs personnel would delay the flights, prompting the first vice chairman of BAR, Delta Air country manager Steven Crowdey, to say they would sue the BOC employees if they persist in doing all these.
Crowdey asked BOC Commissioner Angelito Alvarez to stop the planned strike or disruption of service at the airport by his men. He added that the planned work slowdown would set back the country’s bid to attract tourists.
The Philippines remains a laggard in comparison with other Asian countries in terms of arrivals because of the perceived lack of peace and order, limited infrastructure, and the challenges passengers had to face arriving at the Naia, such as opportunistic taxi drivers and criminal syndicates preying on tourists.
No more arrival forms
Irked by the BOC’s alleged harassment, the 30-member AOC later announced that starting January 1, it would no longer supply Customs with arrival cards. It appears that the cards sponsor, Smart, had also withdrawn printing the cards in exchange for a tiny advertisement carried by the documents.
For the last 10 years, the AOC had been supplying the immigration and customs cards free of charge. These cards are shipped by their individual carriers to headquarters abroad for distribution to passengers.
The cessation of the customs declaration form by the AOC was unanimously approved during a general membership meeting at the Naia last week.
The BOC consumes 1.5 million cards a month at the three major airports, the Naia, Diosdado Macapagal International Airport and Cebu-Mactan International Airport. A total of 22 million immigration and customs cards are consumed by passengers annually.
PAL uses up 5 million cards, Cebu Pacific 3 million, and the rest are shared by other AOC members.
Alvarez, seeing the calamitous implications of having to scramble for 1.5 million cards a month, had an emergency meeting with the AOC and Tourism Secretary Bertie Lim, and got assurances that he would be supplied with the cards at least until the end of December 2010.
At the same time, Alvarez said the BoC will hire 78 new workers starting January to work in shifts, like the rest of the airport workers.
“You know, as the saying goes, a calamity could also be an opportunity, so this threat of the airlines to no longer supply us with arrival cards starting January 2011 could be the opportune time for us to review the situation,” Alvarez said.
AOC chairman Ma. Lourdes Reyes lauded Alvarez’s move to hire additional hands to work in three shifts, calling it “a proactive move and an appropriate solution.”
Despite these developments, the Bureau of Immigration (BI) and the Bureau of Quarantine (BQ) will continue receiving overtime pay from the airline companies, because unlike Customs, the BI’s and BQ’s remunerations were mandated by law and not by administrative order. According to sources, the airlines did not feel the urgency to question the nonlegislated imposition on them of the Customs staff’s overtime because, for the longest time, this wasn’t a problem at a time when air travel was growing at a fast clip and the cost of gasoline was cheap.
However, when the cost of gasoline shot up to $100 a barrel about two years ago, and the global financial crisis hit the airline industry, the airlines started to balk at paying, and the overtime pay of the BoC became the first casualty.
Republic Act 503 states that “Immigration employees may be assigned by the Commissioner of Immigration to do overtime work at rates fixed by him when the service rendered is to be paid for by shipping companies and airlines or other persons served.”
The law was enacted at a time when BI officers were mostly serving at the docks, and airline travel was not yet as popular as today.
When the then-Manila International Airport was opened to the public in the early ’50s, BI personnel were paid travel expenses because they had to travel from the South Harbor to the old Balagbag Terminal, where the first MIA passenger terminal was located.
The feud between the Aoc and the BoC started when the latter demanded that their overtime pay, travel expenses and meal allowance be denominated in US dollar, prompting some BAR executives to ask whether they pay in dollars when eating at the Naia restaurants.
To resolve the brewing conflict, the BoC brought the matter to the Finance department and the Executive department, who ruled in favor of the BoC. However, BAR brought the case to the Court of Appeals, and the rest is history.
Alvarez said that for the last 16 months, some personnel have been rendering service beyond office hours, despite the court ruling favoring Bar in its stand not to shoulder the cost of overtime.
“Starting January next year, we will have about 78 new hires who would be assigned at the Naia to work in shift,” Alvarez said, adding that this would circumvent the Civil Service Commission’s ruling of not paying government workers overtime after office hours. However, he added that night differential pay would be enjoyed by those who report for work in 24-hour shift.
Meanwhile, the BI estimated that a total 8 million people would be coming into the country this month to spend the holidays, including balikbayan and overseas Filipino workers on holiday leave. Authorities hope that once the arrivals start surging toward Christmas, the OT conundrum would no longer add to the other problems of a premier airport long ago left behind by its rivals in a region where growth has been robust even when the rest of the world was in the doldrums.
Business Mirror
A badly needed truce, for now, could yet ease the soaring tensions at the country’s premier international airport, where the onset of the holiday season means a dramatic increase in flights and arrivals and, consequently, more pressures on people and infrastructure.
A 16-month tussle between the Airline Operators Council (AOC) and the airport branch of the Bureau of Customs (BOC) appears to have ended harmoniously after flag carrier Philippine Airlines (Pal) released on Friday a P25-million check worth of five months’ payment for overtime services.
PAL president and CEO Jaime Bautista said they have agreed to pay “as a gesture of goodwill,” and so that the BOC personnel could enjoy Christmas.
“The Court of Appeals has ruled in favor of the Board of Airline Representatives [BAR] that the air carriers do not have to pay, but we came across because we’re aware that some customs employees worked for it,” Bautista explained in an interview at PAL headquarters in Pasay City on Friday. Earlier, the airline group had committed to pay at least five months of the 16-month period in dispute.
BAR, however, said the airlines believe they are overcharged in the P10 million a month billed by the BOC to the carriers, though BAR did not give an estimate on how much the government workers should charge the carriers.
Friday’s announcement of a payment came just in time to avert a disaster at the premier airport that would have had dire implications for the Aquino administration, which is mightily trying to woo investors in the tourism sector.
The AOC has cried foul over the recent withdrawal of services during arrivals at night, when Customs employees did not appear for work to board arriving aircraft, as the law dictates, or simply did not report for duty after office hours, and during weekends and holidays.
The AOC viewed the act as a form of harassment so that airline passengers would lay the blame for late services on the air carriers.
In some instances, Customs personnel would delay the flights, prompting the first vice chairman of BAR, Delta Air country manager Steven Crowdey, to say they would sue the BOC employees if they persist in doing all these.
Crowdey asked BOC Commissioner Angelito Alvarez to stop the planned strike or disruption of service at the airport by his men. He added that the planned work slowdown would set back the country’s bid to attract tourists.
The Philippines remains a laggard in comparison with other Asian countries in terms of arrivals because of the perceived lack of peace and order, limited infrastructure, and the challenges passengers had to face arriving at the Naia, such as opportunistic taxi drivers and criminal syndicates preying on tourists.
No more arrival forms
Irked by the BOC’s alleged harassment, the 30-member AOC later announced that starting January 1, it would no longer supply Customs with arrival cards. It appears that the cards sponsor, Smart, had also withdrawn printing the cards in exchange for a tiny advertisement carried by the documents.
For the last 10 years, the AOC had been supplying the immigration and customs cards free of charge. These cards are shipped by their individual carriers to headquarters abroad for distribution to passengers.
The cessation of the customs declaration form by the AOC was unanimously approved during a general membership meeting at the Naia last week.
The BOC consumes 1.5 million cards a month at the three major airports, the Naia, Diosdado Macapagal International Airport and Cebu-Mactan International Airport. A total of 22 million immigration and customs cards are consumed by passengers annually.
PAL uses up 5 million cards, Cebu Pacific 3 million, and the rest are shared by other AOC members.
Alvarez, seeing the calamitous implications of having to scramble for 1.5 million cards a month, had an emergency meeting with the AOC and Tourism Secretary Bertie Lim, and got assurances that he would be supplied with the cards at least until the end of December 2010.
At the same time, Alvarez said the BoC will hire 78 new workers starting January to work in shifts, like the rest of the airport workers.
“You know, as the saying goes, a calamity could also be an opportunity, so this threat of the airlines to no longer supply us with arrival cards starting January 2011 could be the opportune time for us to review the situation,” Alvarez said.
AOC chairman Ma. Lourdes Reyes lauded Alvarez’s move to hire additional hands to work in three shifts, calling it “a proactive move and an appropriate solution.”
Despite these developments, the Bureau of Immigration (BI) and the Bureau of Quarantine (BQ) will continue receiving overtime pay from the airline companies, because unlike Customs, the BI’s and BQ’s remunerations were mandated by law and not by administrative order. According to sources, the airlines did not feel the urgency to question the nonlegislated imposition on them of the Customs staff’s overtime because, for the longest time, this wasn’t a problem at a time when air travel was growing at a fast clip and the cost of gasoline was cheap.
However, when the cost of gasoline shot up to $100 a barrel about two years ago, and the global financial crisis hit the airline industry, the airlines started to balk at paying, and the overtime pay of the BoC became the first casualty.
Republic Act 503 states that “Immigration employees may be assigned by the Commissioner of Immigration to do overtime work at rates fixed by him when the service rendered is to be paid for by shipping companies and airlines or other persons served.”
The law was enacted at a time when BI officers were mostly serving at the docks, and airline travel was not yet as popular as today.
When the then-Manila International Airport was opened to the public in the early ’50s, BI personnel were paid travel expenses because they had to travel from the South Harbor to the old Balagbag Terminal, where the first MIA passenger terminal was located.
The feud between the Aoc and the BoC started when the latter demanded that their overtime pay, travel expenses and meal allowance be denominated in US dollar, prompting some BAR executives to ask whether they pay in dollars when eating at the Naia restaurants.
To resolve the brewing conflict, the BoC brought the matter to the Finance department and the Executive department, who ruled in favor of the BoC. However, BAR brought the case to the Court of Appeals, and the rest is history.
Alvarez said that for the last 16 months, some personnel have been rendering service beyond office hours, despite the court ruling favoring Bar in its stand not to shoulder the cost of overtime.
“Starting January next year, we will have about 78 new hires who would be assigned at the Naia to work in shift,” Alvarez said, adding that this would circumvent the Civil Service Commission’s ruling of not paying government workers overtime after office hours. However, he added that night differential pay would be enjoyed by those who report for work in 24-hour shift.
Meanwhile, the BI estimated that a total 8 million people would be coming into the country this month to spend the holidays, including balikbayan and overseas Filipino workers on holiday leave. Authorities hope that once the arrivals start surging toward Christmas, the OT conundrum would no longer add to the other problems of a premier airport long ago left behind by its rivals in a region where growth has been robust even when the rest of the world was in the doldrums.
Majority of PAL union members vote to strike
Saturday, 11 December 2010 00:00
The Manila Times
By Darwin G. Amojelar, Reporter
THE Philippine Airlines Employees’ Association (Palea) on Friday said that “substantial majority” of its members voted for a strike against the planned spin-off of Philippine Airlines’ three non-core businesses, as the airline management readied contingency measures to prevent any flight disruptions.
In a statement, Palea said that some 86 percent of the total votes cast were in favor of a strike and a “substantial majority” of its total membership of 2,600 participated in the strike vote. “The 86-percent vote is overwhelmingly given the fact that we had just 24 hours to inform members of the holding of the strike ballot,” Gerry Rivera, Palea president, said.
He added that the successful strike vote conducted among its members brings the union closer to holding an actual strike.
According to the Labor Code, before any legal strike can proceed, a notice of strike must be filed and then a strike vote conducted in which a simple majority of members must agree.
Rivera added that all that remains now is for Palea to file the results of the strike vote at the National Conciliation and Mediation
Board (NCMB), which has jurisdiction of the dispute, and then wait for the lapse of the mandated seven-day notification or cooling off period. The NCMB is an attached agency of the Department of Labor and Employment.
“We understand that a strike at PAL may inconvenience the public. But we also believe that the vast majority of the public are workers and their families who will benefit from Palea’s fight for job security and labor rights,” Rivera said.
The strike vote was announced to Palea members last Monday just after a notice was filed at the NCMB.
The actual strike vote was conducted the whole day of December 7.
Palea is protesting PAL’s plan to spin off part of its operations, a move that will result in letting go some 3,500 of its 7,500 workforce.
In a briefing, Jaime Bautista, PAL president and chief operating officer, assured its passengers that all PAL flights are normal and continue to operate according to published schedules.
“We have in place a contingency program, if it in case the strike happened,” he said.
Bautista added that PAL engaged professional service providers, including inflight catering companies, to augment workers not joining the strike and deploy all available manpower, including supervisors and managers who are more than capable of manning critical frontline posts.
He said that PAL will also endorse affected passengers to its sister airline, AirPhilexpress, as well as to 134 international airline partners.
Bautista said that employees who participated in the recent Palea strike vote are ground workers mostly assigned at the ground-handling, catering and call center offices.
“While their jobs are important, these workers play support to flight operations. They are not directly engaged in flying or maintaining the aircraft. The pilots, cabin crew and mechanics/maintenance workers of Lufthansa Technik Philippines are not part of the planned work stoppage,” he added.
The PAL-Palea labor dispute is being reviewed by Malacañang.
Bautista said that legal avenues can still be exhausted in resolving the management-labor differences.
“The notice of strike that they filed is already decided. If they will strike next week, it’s illegal,” he added.
Palea said that their planned strike is not illegal since there is no labor dispute pending.
“The strike vote stems from the labor dispute docketed as NCMB-NCR NS-11-128-10. That dispute has not been resolved nor been assumed,” Rivera said.
He reiterated the clarification that the issue pending at the Office of the President is PAL’s outsourcing plan which has been affirmed by Labor Secretary Rosalinda Baldoz, while the strike vote arose from a separate though related complaint of individual bargaining by PAL management that constitutes unfair labor practice and union busting.
The Manila Times
By Darwin G. Amojelar, Reporter
THE Philippine Airlines Employees’ Association (Palea) on Friday said that “substantial majority” of its members voted for a strike against the planned spin-off of Philippine Airlines’ three non-core businesses, as the airline management readied contingency measures to prevent any flight disruptions.
In a statement, Palea said that some 86 percent of the total votes cast were in favor of a strike and a “substantial majority” of its total membership of 2,600 participated in the strike vote. “The 86-percent vote is overwhelmingly given the fact that we had just 24 hours to inform members of the holding of the strike ballot,” Gerry Rivera, Palea president, said.
He added that the successful strike vote conducted among its members brings the union closer to holding an actual strike.
According to the Labor Code, before any legal strike can proceed, a notice of strike must be filed and then a strike vote conducted in which a simple majority of members must agree.
Rivera added that all that remains now is for Palea to file the results of the strike vote at the National Conciliation and Mediation
Board (NCMB), which has jurisdiction of the dispute, and then wait for the lapse of the mandated seven-day notification or cooling off period. The NCMB is an attached agency of the Department of Labor and Employment.
“We understand that a strike at PAL may inconvenience the public. But we also believe that the vast majority of the public are workers and their families who will benefit from Palea’s fight for job security and labor rights,” Rivera said.
The strike vote was announced to Palea members last Monday just after a notice was filed at the NCMB.
The actual strike vote was conducted the whole day of December 7.
Palea is protesting PAL’s plan to spin off part of its operations, a move that will result in letting go some 3,500 of its 7,500 workforce.
In a briefing, Jaime Bautista, PAL president and chief operating officer, assured its passengers that all PAL flights are normal and continue to operate according to published schedules.
“We have in place a contingency program, if it in case the strike happened,” he said.
Bautista added that PAL engaged professional service providers, including inflight catering companies, to augment workers not joining the strike and deploy all available manpower, including supervisors and managers who are more than capable of manning critical frontline posts.
He said that PAL will also endorse affected passengers to its sister airline, AirPhilexpress, as well as to 134 international airline partners.
Bautista said that employees who participated in the recent Palea strike vote are ground workers mostly assigned at the ground-handling, catering and call center offices.
“While their jobs are important, these workers play support to flight operations. They are not directly engaged in flying or maintaining the aircraft. The pilots, cabin crew and mechanics/maintenance workers of Lufthansa Technik Philippines are not part of the planned work stoppage,” he added.
The PAL-Palea labor dispute is being reviewed by Malacañang.
Bautista said that legal avenues can still be exhausted in resolving the management-labor differences.
“The notice of strike that they filed is already decided. If they will strike next week, it’s illegal,” he added.
Palea said that their planned strike is not illegal since there is no labor dispute pending.
“The strike vote stems from the labor dispute docketed as NCMB-NCR NS-11-128-10. That dispute has not been resolved nor been assumed,” Rivera said.
He reiterated the clarification that the issue pending at the Office of the President is PAL’s outsourcing plan which has been affirmed by Labor Secretary Rosalinda Baldoz, while the strike vote arose from a separate though related complaint of individual bargaining by PAL management that constitutes unfair labor practice and union busting.
Strikers will be fired, PAL warns
Manila Standard Today
December 11, 2010
by Jeremiah F. de Guzman
PHILIPPINE Airlines will fire and cancel the benefits of all ground employees who will strike because that action would be illegal, company president Jaime Bautista said Friday.
The Labor Department had already taken up and decided on the issue raised by the workers against the airline, Bautista said.
“We don’t think there will be a strike because if they do so, it is an illegal strike,” he said.
“They can be terminated and their benefits will be lost.
But the Philippine Airlines Employees’ Association said the planned strike was over a separate complaint of union busting by the management, and that 75 percent of the votes cast by the union’s 2,700 members Wednesday showed that 86 percent favored a strike.
“That dispute has not been resolved or assumed,” union president Gerardo Rivera said.
“There is nothing more to negotiate that has already been decided by the Labor Department. The decision is very costly for us and very good for the union.”
Bautista said the carrier no longer was open to negotiations with the ground workers. The airline was ready for any strike.
“We have already made arrangements with several service providers to help us if a strike takes place,” he said.
“We don’t really need these employees because we can get them from the service providers.”
Meanwhile, Bautista said Philippine Airlines and the Board of Airline Regulators comprising foreign airlines will pay airport Customs staff P250,000 each in overtime covering five months.
PAL will pay P125,000 and the foreign airlines the balance, he said.
Customs Commissioner Angelito Alvarez said a check was being prepared, and that the employees could be paid by Monday.
“We got a breakthrough in our discussions with PAL,” Alvarez said.
“There has been a positive development. PAL has already prepared the check that will be released today or Monday morning at the latest.”
The airport staff are owed 11 months more, and that amount will be discussed to determine exactly how much is due them. With Eric B. Apolonio
December 11, 2010
by Jeremiah F. de Guzman
PHILIPPINE Airlines will fire and cancel the benefits of all ground employees who will strike because that action would be illegal, company president Jaime Bautista said Friday.
The Labor Department had already taken up and decided on the issue raised by the workers against the airline, Bautista said.
“We don’t think there will be a strike because if they do so, it is an illegal strike,” he said.
“They can be terminated and their benefits will be lost.
But the Philippine Airlines Employees’ Association said the planned strike was over a separate complaint of union busting by the management, and that 75 percent of the votes cast by the union’s 2,700 members Wednesday showed that 86 percent favored a strike.
“That dispute has not been resolved or assumed,” union president Gerardo Rivera said.
“There is nothing more to negotiate that has already been decided by the Labor Department. The decision is very costly for us and very good for the union.”
Bautista said the carrier no longer was open to negotiations with the ground workers. The airline was ready for any strike.
“We have already made arrangements with several service providers to help us if a strike takes place,” he said.
“We don’t really need these employees because we can get them from the service providers.”
Meanwhile, Bautista said Philippine Airlines and the Board of Airline Regulators comprising foreign airlines will pay airport Customs staff P250,000 each in overtime covering five months.
PAL will pay P125,000 and the foreign airlines the balance, he said.
Customs Commissioner Angelito Alvarez said a check was being prepared, and that the employees could be paid by Monday.
“We got a breakthrough in our discussions with PAL,” Alvarez said.
“There has been a positive development. PAL has already prepared the check that will be released today or Monday morning at the latest.”
The airport staff are owed 11 months more, and that amount will be discussed to determine exactly how much is due them. With Eric B. Apolonio
Saturday, December 11, 2010
Despite labor row, PAL reports 10% increase in holiday bookings
By EMMIE V. ABADILLA
Manila Bulletin
December 11, 2010, 1:03am
MANILA, Philippines – Despite its labor woes, confirmed flight bookings on Philippine Airlines (PAL) for this month, the peak season of holiday travel, registered a 10 percent increase compared to the same period last year.
Close to 90 percent of PAL's booked passengers have been issued confirmed tickets for Manila-inbound flights, indicative of the travelers' trust in PAL's ability to fly them to their destinations.
Based on sales data, almost all flights coming from the United States are full, registering the highest number of forward bookings, followed by those coming from Australia.
PAL's traditionally packed flights every December are those coming from North America, Australia, Hong Kong and Singapore. Between Christmas and New Year, PAL's airplanes are filled with vacationers bound for Kalibo, Hong Kong, Bangkok, Singapore and China.
Last year, PAL carried some 9.2 million passengers or an average of 25,630 passengers per day. This number goes up by as much as 30 percent with the onset of the Christmas peak season as thousands of tourists, returning residents and Overseas Filipino Workers (OFWs) spending Christmas with their families.
Malacañang made a public appeal to the PAL Employees Association (PALEA) to defer any work stoppage while the Palace exhausts all means to resolve the labor dispute. Earlier, the PAL workers’ union held a strike vote. PAL questioned the legal basis for the strike.
Still, "Many of our inbound passengers finalized their travel plans after Malacañang's appeal to PALEA. Most of them are hopeful that through Malacanang’s intercession and PALEA’s cooperation – ‘in the spirit of Christmas’ – they would be able to spend the holidays with their loved ones," according to PAL spokesperson Cielo Villaluna.
PAL assured its passengers of normal operations even as it questioned the legality of PALEA's strike vote. "While the strike vote threatens to spoil the holiday travel plans of thousands of Filipinos, PAL is exerting all efforts to ensure continued safe and reliable service," she noted.
While PALEA's the strike vote did not cause any flight cancellations and no significant withdrawal of passenger bookings have been noted, "We advise our passengers to come to the airport early – at least two hours before the intended departure time – to avoid long queues and other inconveniences that usually occur during this time of the year," Villaluna announced.
“With heavy traffic, huge volume of passengers and tighter security checks as the holiday season nears, we request our passengers to devote enough lead time when going to the airport,” she advised.
Earlier, Philippine Airlines (PAL) welcomed the decision of President Benigno Simeon Aquino III to designate Executive Secretary Paquito Ochoa to broker talks between PAL and its ground workers’ union.
In a statement, PAL spokesperson Cielo Villaluna said the flag carrier wants to finally resolve the issue of whether or not the PAL Employees Association (PALEA) has legal grounds to conduct a strike vote, much less engage in a work stoppage.
“PAL appreciates President Aquino’s concern and desire to put closure to the PAL-PALEA dispute. Like the President, PAL believes that the public deserves a quick resolution to this issue so as not to further cause anxiety to thousands of passengers who have already firmed up their holiday travel plans,” she said.
Manila Bulletin
December 11, 2010, 1:03am
MANILA, Philippines – Despite its labor woes, confirmed flight bookings on Philippine Airlines (PAL) for this month, the peak season of holiday travel, registered a 10 percent increase compared to the same period last year.
Close to 90 percent of PAL's booked passengers have been issued confirmed tickets for Manila-inbound flights, indicative of the travelers' trust in PAL's ability to fly them to their destinations.
Based on sales data, almost all flights coming from the United States are full, registering the highest number of forward bookings, followed by those coming from Australia.
PAL's traditionally packed flights every December are those coming from North America, Australia, Hong Kong and Singapore. Between Christmas and New Year, PAL's airplanes are filled with vacationers bound for Kalibo, Hong Kong, Bangkok, Singapore and China.
Last year, PAL carried some 9.2 million passengers or an average of 25,630 passengers per day. This number goes up by as much as 30 percent with the onset of the Christmas peak season as thousands of tourists, returning residents and Overseas Filipino Workers (OFWs) spending Christmas with their families.
Malacañang made a public appeal to the PAL Employees Association (PALEA) to defer any work stoppage while the Palace exhausts all means to resolve the labor dispute. Earlier, the PAL workers’ union held a strike vote. PAL questioned the legal basis for the strike.
Still, "Many of our inbound passengers finalized their travel plans after Malacañang's appeal to PALEA. Most of them are hopeful that through Malacanang’s intercession and PALEA’s cooperation – ‘in the spirit of Christmas’ – they would be able to spend the holidays with their loved ones," according to PAL spokesperson Cielo Villaluna.
PAL assured its passengers of normal operations even as it questioned the legality of PALEA's strike vote. "While the strike vote threatens to spoil the holiday travel plans of thousands of Filipinos, PAL is exerting all efforts to ensure continued safe and reliable service," she noted.
While PALEA's the strike vote did not cause any flight cancellations and no significant withdrawal of passenger bookings have been noted, "We advise our passengers to come to the airport early – at least two hours before the intended departure time – to avoid long queues and other inconveniences that usually occur during this time of the year," Villaluna announced.
“With heavy traffic, huge volume of passengers and tighter security checks as the holiday season nears, we request our passengers to devote enough lead time when going to the airport,” she advised.
Earlier, Philippine Airlines (PAL) welcomed the decision of President Benigno Simeon Aquino III to designate Executive Secretary Paquito Ochoa to broker talks between PAL and its ground workers’ union.
In a statement, PAL spokesperson Cielo Villaluna said the flag carrier wants to finally resolve the issue of whether or not the PAL Employees Association (PALEA) has legal grounds to conduct a strike vote, much less engage in a work stoppage.
“PAL appreciates President Aquino’s concern and desire to put closure to the PAL-PALEA dispute. Like the President, PAL believes that the public deserves a quick resolution to this issue so as not to further cause anxiety to thousands of passengers who have already firmed up their holiday travel plans,” she said.
DZIQ: PAL preparing for another crew strike
INQUIRER.net
First Posted 10:53:00 12/10/2010
MANILA, Philippines -- The management of the Philippines Air Lines (PAL) has taken all preparations in the event of another strike by the crew, PAL spokesperson Cielo Villaluna said in an interview on dzIQ Radyo Inquirer's "Tapatan" program Friday morning.
"PAL is prepared for the worst-case scenario," Villaluna told Jay Sonza, anchor of Tapatan.
Villaluna made the assurances after a majority of the PALEA membership voted to strike to protest alleged union busting and unfair labor practices.
She said that PAL would seek the help of Air Phil, a sister company, to service passengers who may be affected in case the strike would push through.
Villaluna added that talks were also underway between PAL and 134 inter-airline partners as well as several food catering companies to supplement work that would be abandoned by the striking airline crew and employees.
Listen to Villaluna's full interview on Radyo Inquirer, DZIQ 990 khz AM.
Fe Zamora, Radyo Inquirer
First Posted 10:53:00 12/10/2010
MANILA, Philippines -- The management of the Philippines Air Lines (PAL) has taken all preparations in the event of another strike by the crew, PAL spokesperson Cielo Villaluna said in an interview on dzIQ Radyo Inquirer's "Tapatan" program Friday morning.
"PAL is prepared for the worst-case scenario," Villaluna told Jay Sonza, anchor of Tapatan.
Villaluna made the assurances after a majority of the PALEA membership voted to strike to protest alleged union busting and unfair labor practices.
She said that PAL would seek the help of Air Phil, a sister company, to service passengers who may be affected in case the strike would push through.
Villaluna added that talks were also underway between PAL and 134 inter-airline partners as well as several food catering companies to supplement work that would be abandoned by the striking airline crew and employees.
Listen to Villaluna's full interview on Radyo Inquirer, DZIQ 990 khz AM.
Fe Zamora, Radyo Inquirer
PAL flight bookings up despite labor problems
Friday, 10 December 2010 00:00
The Manila Times
PHILIPPINE Airlines (PAL) on Thursday said its flight bookings rose by a tenth for the coming holidays despite the labor woes hounding the flag carrier.
In a statement, the Lucio Tan-owned airline said the higher bookings this month is an indication of a strong passenger confidence in PAL’s continued operations.
Cielo Villaluna, PAL spokesperson, said its sales department noted a significant uptick in confirmed bookings especially after
Malacañang, through Executive Secretary Paquito Ochoa Jr., made a public appeal to the PAL Employees Association (Palea) to defer any work stoppage as the Palace exhausts all means to resolve the labor tiff.
PAL workers’ union earlier held a strike vote, but the airline management questioned its legal basis.
PALEA is protesting PAL’s plan to spin off part of its operations, a move that will result in letting go some 3,500 of its 7,500 workforce.
Villaluna said close to 90 percent of PAL’s booked passengers have been issued confirmed tickets for Manila-inbound flights, indicative of the travelers’ trust in the airline’s ability to fly them to their respective destinations.
“Many of our inbound passengers finalized their travel plans after Malacañang’s appeal to Palea. Most of them are hopeful that through Malacañang’s intercession and Palea’s cooperation—‘in the spirit of Christmas’—they would be able to spend the holidays with their loved ones,” he said.
Based on sales data, almost all flights coming from the United States are full —registering the highest number of forward bookings—followed by those coming from Australia.
PAL’s traditionally packed flights every December are those coming from North America, Australia, Hong Kong and Singapore. Between Christmas and New Year, its airplanes are filled with vacationers bound for Kalibo, Hong Kong, Bangkok, Singapore and China.
Last year, PAL carried 9.2 million passengers or an average of 25,630 passengers per day. This number goes up by as much as 30 percent with the Christmas peak season as thousands of tourists, balikbayans and overseas Filipino workers flock home to spend Christmas with their families.
“While the strike vote threatens to spoil the holiday travel plans of thousands of Filipinos, PAL is exerting all efforts to ensure continued safe and reliable service,” Villaluna said.
She said the strike vote did not cause any flight cancellations, adding that no significant withdrawal of passenger bookings have been noted.
“We would like [to] reiterate our advise [to] our passengers to please come to the airport early—at least two hours before the intended departure time—to avoid long queues and other inconveniences that usually occur during this time of the year,” Villaluna said.
Darwin G. Amojelar
The Manila Times
PHILIPPINE Airlines (PAL) on Thursday said its flight bookings rose by a tenth for the coming holidays despite the labor woes hounding the flag carrier.
In a statement, the Lucio Tan-owned airline said the higher bookings this month is an indication of a strong passenger confidence in PAL’s continued operations.
Cielo Villaluna, PAL spokesperson, said its sales department noted a significant uptick in confirmed bookings especially after
Malacañang, through Executive Secretary Paquito Ochoa Jr., made a public appeal to the PAL Employees Association (Palea) to defer any work stoppage as the Palace exhausts all means to resolve the labor tiff.
PAL workers’ union earlier held a strike vote, but the airline management questioned its legal basis.
PALEA is protesting PAL’s plan to spin off part of its operations, a move that will result in letting go some 3,500 of its 7,500 workforce.
Villaluna said close to 90 percent of PAL’s booked passengers have been issued confirmed tickets for Manila-inbound flights, indicative of the travelers’ trust in the airline’s ability to fly them to their respective destinations.
“Many of our inbound passengers finalized their travel plans after Malacañang’s appeal to Palea. Most of them are hopeful that through Malacañang’s intercession and Palea’s cooperation—‘in the spirit of Christmas’—they would be able to spend the holidays with their loved ones,” he said.
Based on sales data, almost all flights coming from the United States are full —registering the highest number of forward bookings—followed by those coming from Australia.
PAL’s traditionally packed flights every December are those coming from North America, Australia, Hong Kong and Singapore. Between Christmas and New Year, its airplanes are filled with vacationers bound for Kalibo, Hong Kong, Bangkok, Singapore and China.
Last year, PAL carried 9.2 million passengers or an average of 25,630 passengers per day. This number goes up by as much as 30 percent with the Christmas peak season as thousands of tourists, balikbayans and overseas Filipino workers flock home to spend Christmas with their families.
“While the strike vote threatens to spoil the holiday travel plans of thousands of Filipinos, PAL is exerting all efforts to ensure continued safe and reliable service,” Villaluna said.
She said the strike vote did not cause any flight cancellations, adding that no significant withdrawal of passenger bookings have been noted.
“We would like [to] reiterate our advise [to] our passengers to please come to the airport early—at least two hours before the intended departure time—to avoid long queues and other inconveniences that usually occur during this time of the year,” Villaluna said.
Darwin G. Amojelar
PAL bookings inch up
Manila Standard Today
December 10, 2010
Philippine Airlines chalked up a significant uptick in flight bookings for the coming holidays following Malacanang’s appeal to the airline’s union to defer a strike.
PAL recorded a 10-percent hike in confirmed bookings for the month of December, of which over 90 percent has been issued confirmed tickets for Manila-inbound flights.
Based on sales data, almost all flights coming from the United States are full, registering the highest number of forward bookings, followed by those coming from Australia.
PAL’s traditionally packed flights every December are those coming from North America, Australia, Hong Kong and Singapore. Between Christmas and New Year, PAL’s airplanes are filled with vacationers bound for Kalibo, Hong Kong, Bangkok, Singapore and China.
Malacañang, through Executive Secretary Pacquito Ochoa, Jr., made a public appeal to the PAL Employees’ Association to defer any work stoppage while the Palace exhausts all means to resolve the PAL-PALEA labor dispute. Jeremiah de Guzman
December 10, 2010
Philippine Airlines chalked up a significant uptick in flight bookings for the coming holidays following Malacanang’s appeal to the airline’s union to defer a strike.
PAL recorded a 10-percent hike in confirmed bookings for the month of December, of which over 90 percent has been issued confirmed tickets for Manila-inbound flights.
Based on sales data, almost all flights coming from the United States are full, registering the highest number of forward bookings, followed by those coming from Australia.
PAL’s traditionally packed flights every December are those coming from North America, Australia, Hong Kong and Singapore. Between Christmas and New Year, PAL’s airplanes are filled with vacationers bound for Kalibo, Hong Kong, Bangkok, Singapore and China.
Malacañang, through Executive Secretary Pacquito Ochoa, Jr., made a public appeal to the PAL Employees’ Association to defer any work stoppage while the Palace exhausts all means to resolve the PAL-PALEA labor dispute. Jeremiah de Guzman
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