Saturday, 21 August 2010 00:00
BY DARWIN G. AMOJELARSENIOR REPORTER
THE MANILA TIMES
Flight attendants and stewards of Philippine Airlines (PAL) want the management of the flag-carrier to share with them its more than a billion profits for the first quarter of its fiscal year. The Lucio Tan-owned PAL on Friday announced that it made profits amounting to $31.6 million (P1.45 billion) from April to June. This was 11-percent lower than the same period last year.
Jaime Bautista, PAL president and chief operating officer, attributed the earnings to the “usual strong demand during the summer vacation.”
The airline’s revenues went up by 30 percent to $426.7 million for the first quarter of its fiscal year 2010 to 2011 over the same period of $327.7 million.
During the first three months of its current fiscal year, PAL said that it benefited from improvements in passenger traffic as well as cargo, reflecting signs of economic recovery worldwide.
Higher yields generated per seat offering also complemented growth in passenger demand.
PAL’s total expenses amounted to $391.6 million, up by $106.1 million, or 3 percent from the same quarter total of $285.5 million the previous year.
Jet fuel, which continues to be the airline’s biggest operating expense, rose by $55 million during the first quarter with fuel prices at an average of $100.47 a barrel from $70.28 a barrel in 2009.
The airline also reported a reduction in “other income” by $47.5 million to $15.4 million for the first three months this year compared with $62.9 million for the same period the year before.
When sought for comment, Andy Ortega, the vice president of Flight Attendants and Stewards Association of the Philippines (Fasap), said that the management should increase its offer in its labor talks with the association, with PAL posting a net profit.
“PAL’s P80 million offer is not enough. They should share its profits with cabin crew,” Ortega added.
According to the Fasap vice president, PAL’s savings amounted to P235 million in the last three years for reduced number of cabin crew a flight.
Ortega said that the airline industry is recovering, including PAL, and he added that PAL management’s offer had no basis.
The labor dispute between the PAL management and Fasap earlier bogged down after the union rejected the airline’s offer of P80 million
economic package under their collective bargaining agreement covering 2005 to 2010.
The standoff made Fasap decide to file a notice of strike next week.
Bautista, however, said that despite encouraging numbers on account of the peak travel season, “PAL is bracing for lower passenger volumes during the airline’s ‘lean season’ usually between August to November.”
He added that while the aviation industry is showing signs of slow recovery, PAL remains focused on continuing its efforts to generate more revenues and control costs.
In moving forward, Bautista said, the flag-carrier must “swallow bitter pills” and handle its labor issues with “utmost care” if the airline is to survive amid a difficult and cut-throat operating environment.
PAL also has a pending labor problem with PAL Employees Association because of the airline’s plan to spin off its three non-core businesses.
The affected units are in-flight catering services, airport services (including ground handling, cargo terminal/cargo handling, and ramp handling) and call-center reservations that employ 3,000.
PAL said that it was forced to implement the restructuring plan because of the global recession, high fuel prices, unabated liberalization of the commercial aviation industry and recent blacklisting of Philippine carriers by the European Union.
During its last fiscal year ending March 2010, PAL reported a net comprehensive loss of $14.4 million in spite of a $35.5-million profit during the first quarter.
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