PAL prepares for possible disruption of operations

Monday, 23 August 2010 00:00
THE MANILA TIMES

THE Department of Transportation and Communications (DOTC) has laid down contingency measures against possible disruption of services of Philippine Airlines (PAL) that a strike by the flag-carrier’s ground and cabin crew could bring about. Dante Velasco, DOTC Undersecretary for Public Information, over the weekend, told reporters that the Civil Aeronautics Board (CAB) had informed the department that Southeast Asian Airlines (SEAIR) and Spirit of Manila Airlines (SOMA) have shown interest to serve the routes that PAL may stop serving because of the strike.

”SOMA signified its willingness and capability to immediately expand its operations [once PAL’s operations are disrupted],” Velasco said.

At present, SOMA only operates between Clark in Pampanga and Taipei in Taiwan.

Velasco said that SEAIR was also willing “but its capability is contingent on the actual delivery of their leased aircraft.”

SEAIR is leasing two Airbus A320s to Tiger Airways.

A labor dispute between PAL management and Flight Attendants and Stewards Association of the Philippines (Fasap) earlier bogged down after the union rejected the airline’s offer of P80 million in economic package under their collective bargaining agreement covering 2005 to 2010.

The standoff made Fasap decide to file a notice of strike this week.

Velasco said that the CAB plans to implement a “partial deregulation” of the airline industry if PAL’s services are halted.

Partial deregulation means that there is no limit to the number of flights and routes that can be flown by any domestic airline and fares are also less regulated.

Velasco said that CAB will communicate with foreign airlines concerned to assess their willingness and capability to expand their services to cover the international routes that PAL cannot operate.

Other contingency measures include identifying foreign carriers that are also serving routes served by PAL.

Also earlier, the flag-carrier said that it will deploy its administrative and other staff if its ground and cabin crew strike and passengers may also be transferred to PAL’s 134 partner airlines in case of flight disruptions.

PAL has a total of 134 interline partners—12 airlines in Southeast Asia, 11 in the US and Canada, 25 in Europe, 12 in the Middle East, three in Japan; and 10 in China.

It 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.
DARWIN G. AMOJELAR