DOTC, PAL have contingency for strike

Sunday, 22 August 2010 13:12
Business Mirror

THE Transportation department will tap foreign airlines to service Philippine Airlines’ (PAL) international routes should a threatened strike of the airline’s ground and cabin crew unions push through.

The department said it had begun reviewing air-services agreements with other countries to determine entitlements covering the affected routes, after which they will determine the foreign carriers also serving the routes serviced by PAL, including those that have rights to operate the routes but do not actually operate them and airlines that have code-share agreements with PAL.

Local airlines have already been asked by the government to operate the routes that PAL may stop serving both international and domestic.

However, only the Spirit of Manila signified its willingness and capability to immediately expand its operations. Seair is willing, but its capability is contingent on the time of delivery of the its newly leased aircraft.

PAL has a total of 134 interline partners—12 airlines in Southeast Asia, 11 in the USA and Canada, 25 in Europe, 12 in the Middle East, 3 airlines in Japan and 10 airlines in China. “In case of flight disruptions, our passengers can rest assured that we can transfer them to these airline partners,” said PAL president Jaime Bautista.

The Department of Transportation and Communications will be in close coordination with PAL on their plan of how to transfer its passengers to other airlines, in case PAL stops
operations.

Bautista assured the air traveling public, “We commit to our passengers that we will bring them to their destination whether through extra flights or through PAL’s domestic and international interline partners.” ?

He also said there is no immediate strike imminent because in public utilities like PAL “there is a legal process involved which all parties must respect and adhere to, before any lockout or strike can materialize.” ?

Just the same, he said, PAL has lined up measures like having administrative staff and other personnel help in case of emergency. ?

The flag carrier posted a net income of $31.6 million from April to June this year, lower by $3.9 million or 12 percent compared to the same period last year. It has revenues of $426.7 million in the first quarter of its fiscal year 2010-11, an improvement of $99.0 million or 30 percent over the same period of $327.7 million in 2009.

During the first three months of its current fiscal year, the airline had improved passenger traffic as well as cargo, reflecting signs of economic recovery worldwide. ?

Total expenses amounted to $391.6 million, up by $106.1 million or 37 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 in the first quarter with fuel prices averaging?$100.47 per barrel from?$70.28 per barrel in 2009. ?