Monday, August 31, 1998

PAL Exec Receives Skal Award

Manila Standard
Monday, August 31, 1998

In grateful recognition for her selfless dedication and exemplary contribution in uplifting the overall quality of the various sectors of the travel and tourism industry, Skal Club 481 on Friday night awarded Philippine Airlines Regional Vice President/General Manager for Philippines and Guam Mila Limgenco the Special Skal Citation Travel Tourism Award during the 12th Annual Skal Awards and Fellowship Night held at The Rigodon Ballroom of The Peninsula Manila.

Mila Limgenco, a civic-minded and low key individual was being given special recognition for her invaluable role in the development of tourist destinations in the Philippines.

As President of Women in Travel for an unprecedented four terms, she has spearheaded various training programs aimed at upgrading tourism skills of front liners and resort managers/owners in Boracay and Palawan in cooperation with the Department of Tourism and the local government of Aklan.

With the decline in international travel in 1997, she has established, without fuss or fanfare, tourism exchanges between Brunei, Xiamen and   the Philippines, creating renewed interest in Asian countries as exciting and affordable alternative tourist destination. SEDJ

Troubled PAL to Drastically Cut Fleet Size

Sun Star Daily
Monday, August 31, 1998

MANILA troubled flag carrier Philippine Airlines. (PAL) said yesterday it would drastically cut its fleet size to survive a “financial tailspin" that has pushed it to the brink of bankruptcy.

The carrier will by November this year begin deploying a "leaner, younger fleet" on domestic and international routes, a PAL statement said.

"The cost-efficiency afforded by the leaner, more modern fleet, combined with the airline’s reduced exposure to unprofitable domestic operations, should allow PAL to cope the difficulties brought on by the new economic realities prevailing in the region," the statement said.

PAL is next month to submit a rehabilitation plan including the fleet restructuring to the Securities and Exchange Commission (SEC).

The plan calls for a fleet of "initially between 21 and 25 aircraft" compared to 54. PAL said it would also retire its Fokker 50 turboprop aircraft used mainly in domestic operations.

A crippling pilots' and ground staff strike had earlier forced PAL to considerably reduce its operations and seek SEC protection from its creditors.

PAL sacked about 5,000 ground crew and 600 pilots after the pilots' strike in June although it later hired new pilots and took back some of the strikers.

PAL, which used to fly to 16 international destinations before announcing the cutback in June, now flies to San Francisco, Los Angeles, Hong Kong, Tokyo, Fukuoka, Singapore and Taipei. Last week it said it would mount 10 new international flights in October.

PAL either said it was filling about 76 percent of its seats on domestic flights and 73 percent on international flights.

PAL’s net loss in the three months to June surged nearly 10 times from a year earlier to P4.9 billion ($111.36 million). It lost P1.9 billion in June alone following the pilots’ strike. AFP

Task Force Formed to Solve PAL’s woes

Today
Monday, August 31, 1998

PRESIDENT Estrada has formed an interagency task force headed by Finance Secretary Edgardo Espiritu to settle once and for all the labor problems at the Philippine Airlines (PAL) and to look for "long-term solutions" on its financial woes.

Espiritu said late Friday that the task force would also try to come up with measures to protect the national flag carrier from unfair competition in the deregulated airline industry.

He said his group was given only a week by the President to finish the task. Estrada issued an administrative order creating the tax force which states that "the national interest requires that there should be a wholistic, creative and innovative approach to solve the problems of PAL."

Besides the Department of Finance, the task force includes officials from the Departments of Labor and Employment, Transportation and Communication, Foreign Affairs, and Tourism and the Securities and Exchange Commission.

In a meeting with Estrada last Friday, Espiritu said the President "was concerned that the impasse at PAL was taking too long and decided that the government should take a more active role in helping resolve the problem."

Espiritu justified the government decision to intervene in the labor-management dispute at PAL as well as in finding solutions to its financial problems, citing the equity held by government financial institutions in the airline and the negative impact that the pilots' strike and subsequent downsizing of its operations have had on the economy.

He said the task force would meet first with PAL labor unions, and then with management and finally with all the parties together, starting today to resolve problems besetting the company.

The Government Financial Institution and state-managed financial agencies with equity exposure in PAL are Philippine National Bank, Land Bank of the Philippines, Government Service and Insurance System and the Social Security System.

Control of PAL is with tycoon Lucio Tan, widely believed to be Estrada's biggest financial supporter for his Presidential campaign last May. E. de la Cruz

NLRC dismisses pilots’ petition

Manila Bulletin
Monday, August 31, 1998
E.T. Suarez

The National Labor Relations Commission (NLRC) has dismissed for lack of jurisdiction the petition of the Airline Pilots Association of the Philippines (ALPAP) seeking to stop the Philippine Airlines (PAL) from hiring non-ALPAP pilots and to accept the striking ALPAP members to return to work without qualification.
In a 19-page resolution issued by its first division, the NLRC said it does not prevent ALPAP from seeking redress of its grievances against PAL, but the same must be ventilated in the proper forum.
“And when we speak of the proper forum, it is the ‘arena’ which by law and jurisprudence has first acquired exclusive jurisdiction to hear and decide the instant labor dispute," the NLRC said in a resolution written by Commissioner Tito F. Genilo and concurred in by Presiding Commissioner Lourdes C. Javier.
It added that when the labor secretary assumed jurisdiction over ALPAP's strike, said jurisdiction includes and extends to all questions and controversies arising therefore which includes the authority to issue injunctive orders in relation to said labor disputes.
"This is not without any jurisprudential authority for the issue at bar is not a case of first impression," Genilo said. "In International Pharmaceuticals, Inc. vs. Hon. Secretary of Labor and Associated Labor Union (ALU), the authority of the Secretary of Labor to extend his power to assume jurisdiction to incidental questions or issues directly arising from or related to the main dispute over which he initially assumed jurisdiction was upheld."@

Friday, August 28, 1998

PAL: ‘Over the Hump and Here to Stay’

Weekend Balita
August 28 – September 3, 1998
By Max G. Alvarez

LOS ANGELES – With the disclosure that “we are over the hump and we are here to stay,” Philippine Airlines (PAL) Wednesday outlined the new global thrusts of the air firm, which only recently lay almost paralyzed by a labor strike.

Felix J. Cruz, Officer-in-Charge for Marketing of the PAL corporate office in Makati City, Philippines, addressed the media representatives at the PAL Los Angeles headquarters on Century Boulevard to reemphasize the dramatic return of PAL to the skies.

The essence of Cruz’s briefing for the press also served as an enhancement of PAL’s slogan, “Asia’s Sunniest,”  and the position of the Makati-based airline as Asia’s pioneer air company with a 57-year track record in the aviation industry.

With Cruz at the meeting were PAL/Los Angeles District Sales Manager Adrian M. Ingles, Manager for Advertising (PAL Corporate Office) Jesus Guidote Garcia, Reservations Manager Graciella C. Cruz of PAL/Los Angeles, and Narciso (Soy) Cervantes, PAL Supervisor at the L.A International Airport.

A support duo composed of Pio C. Lee, Vice President for Administration, K Adventure Corporation (Manila), and Leonardo V. Uy, president of LEONEL Waste Management (Manila), also attended the news conference.

The announcement about the resumption of daily flights between L.A–Manila and San Francisco–Manila (and return flights from Manila for these routes) highlighted the updates given by Felix J. Cruz.

Cruz also took occasion to dispel speculations that PAL is keeping old aircraft and disposing off new ones in the aftermath of the worst labor problem ever to hit Asia’s pioneer air enterprise.

By a temporary policy triangulation, PAL serves the Manila–L.A–San Francisco route with a new service strategy. Sooner than the industry might expect, the airline will be back full blast with the “dedicated flights to serve the North America routes even better.” And fares, said Cruz and Ingles, are better than ever with the “Salamat” (Thank you) offer. Prospective passengers may call any PAL office to check out this best ever bargain.

“We expect the PAL Filipino market to be fully back with us soon, now that we have regained foothold after the recent strike,” Cruz explained.

Advertising Division Manager Jesus Guidote Garcia pledge “to do everything possible” to assist Filipino-American newspaper with advertisements from PAL.

The L.A visit of the PAL team from Makati City was a hands-on amplification of a recent PAL announcement about the airline’s rebuilding process now “that the negative effects of the strike are waning and public confidence is coming back.”

PAL last week announced a manpower complement of 8,578, including 200 pilots, and a young fleet of 21 jet planes averaging three years in age.

Recent statistics from PAL Makati also summed up the airline’s advantages in such areas as number of aircraft, number of stations, on-time performance, comparative frequencies, and passenger traffic.

A PAL rehab plan, according to Makati sources, will be submitted to the Philippine Securities and Exchange Commission in October this year. The document spells out how the company’s $2 billion debt would be restructured, along with specific details about schedule of payments.

The rehab plan calls for 21 aircraft (Plan 21) which, according to the airline’s Makati office, “is the initial number of aircraft to rightsize PAL towards viability. The number could go higher if needed.”

New PAL pilot corps vows to win back passenger trust

The Newsmaker
August 28 - September 3, 1998

After undergoing a cathartic upheaval during the last two months, the new pilot corps for Philippine Airlines now files with a renewed sense of purpose to serve the riding public first and foremost.
“We want to serve the public first and get the airline off the ground," says First Officer Miguel Rocha, a former striker who returned to PAL’s fold after a month on the picket line.
Rocha's attitude is indicative of the new culture prevailing at PAL's flight operations unit, which was at the center of the storm during the 22-day strike by the pilots' union last June.
"There is a very clear and tangible change in attitude around here," says Capt. Edilberto Medina, chief pilot of the Boeing 737 division. “The new pilot corps we have now is more disciplined, more dedicated to their jobs and highly professional."
PAL has steadily built up its flight deck crew after its ranks were decimated by the strike. The flag carrier now has 224 pilots (made up of 191 line pilots and 33 management pilots) in its coaster -- a large contraction from the 620 pilots in the line before the strike. Of the 191 line pilots, more than three-fourths are "returnees."
But if they once struck to bring PAL to its knees, the returnees are now the flag carrier's management pilots. “The past is past. It's time to move on. Right now, we want to do our part and help in PAL's recovery efforts," says Rocha, who files the airline's long- range workhorse, the Airbus A340.
"There's very evident willingness among the pilots to roll up their sleeves and get down to work," says Capt. Alejandro Campos, Jr., deputy chief pilot of the A340 division.
“Everybody is available at all times, unlike before when we had many cases of pilots calling in sick. We've never had a case of a pilot being medically grounded or experiencing    on-time performance (OTP) problems during the last two months," he added.@