PAL Cancels More Flights; Operations Normalized Today

Philippine Daily Inquirer

Monday, November 4, 1996

PHILIPPINE Airlines yesterday was forced to cancel more flights despite the end of a crippling four-day strike, but expected to fully normalize services today.

Fourteen international flights bound for Asian, American and Australian destinations and 18 domestic flights were scheduled to depart yesterday, but 10 Asian and Middle East-bound and 31 domestic flights were cancelled, PAL said.

The airline said it cancelled some of the flights to maximize the use of its fleet in heavy traffic routes, both international and domestic, not serviced by the other local carriers.

"As more employees begin to report for work, additional flights could be operated later in the day. Full normalization is expected by noon," a PAL statement said.

PAL ground and cargo employees, who went on strike starting Wednesday, started to return to work yesterday noon.

Improvements were noted at the baggage and cargo handling section of the Ninoy Aquino International Airport since PAL is the dominant ground handing agent of almost all international airlines at the NAIA.

Arrivals at the Manila Domestic Airport were brisk as passengers returned from the provinces after All Saints' Day.

"The lifting of picket lines (Saturday afternoon), followed by the gradual return of union members to their work stations, has resulted in a substantial increase in the number of international and domestic flights the airline will be mounting today," the statement said.

An agreement signed Saturday in the presence of Labor Secretary Leonardo Quisumbing set negotiations this month for a new collective bargaining agreement between management and the 8,500-strong PAL Employees' Association (Palea).

The agreement also stipulated that there would be no retaliation against ground crew who began the strike Oct. 30.

Mechanics, cargo handlers, maintenance crew and ticket counter workers demanded wage increases amounting to P3.2 billion over a two-year period.

PAL management, headed by Lucio Tan, had offered P477 million worth of stock to its employees, but an airline statement said it would now come up with a "counter proposal" to the union's demand.

The strike forced the cancellation of at least 30 international flights and more than 100 domestic flights costing the beleaguered airline P100 million in cancellations, rebookings, lodging and food for displaced passengers, PAL officials said.

While few passengers asked for a refund at the NAIA, domestic passengers were left with no choice but to ask for a refund since most of them booked flights for the long All Saints' Day break.

PAL officials said losses were also incurred when passengers asked for refunds.

"Many of these passengers got their tickets from agents whom we give discounts to," a PAL official said. "So while we are paid at a discounted cost, we have to refund passengers for the whole amount of the ticket."

PAL farmed out its passengers to other airlines with the same routes to address the backlog in international flights.

Other airlines, like Cathay Pacific, doubled the volume of catered food and, brought in additional personnel from their respective head offices because of the increase in passenger volume.

Reports from Rocky Nazareno, AFP