Thursday, September 15, 2011

FLIGHT ADVISORY:

FLIGHT ADVISORY: Passengers for tomorrow's flights (September 16, 2011) are advised to leave much earlier than usual for the airport, or at least four hours before their scheduled departure time, in anticipation of heavy traffic along the roads leading to the Ninoy Aquino International Airport (NAIA).

The PAL Employees Association is expected to conduct mass actions within the vicinity of the airport in celebration of PALEA's anniversary.

Wednesday, June 22, 2011

Biz Buzz: Fighting manipulation

By: the staff
Philippine Daily Inquirer
1:09 am | Wednesday, June 22nd, 2011

Spend money to make money

Philippine Airlines may be back in the black this year, but that doesn’t mean the flag carrier is about to start taking it easy.

Apart from its much-talked-about efforts to streamline its sometimes cumbersome cost structure inherited from its days as a government-owned firm, PAL is also trying to improve its revenue profile.

One particular area of interest for the airline is its lucrative trans-Pacific route which, according to our source, accounts for the biggest share of PAL’s revenue pie, but also has some of the slimmest profit margins.

To improve this, PAL not only needs to fly more passengers but it has to be able to do this more efficiently by using its brand-new Boeing 777 jets for its Manila-Los Angeles and Manila-San Francisco services (something currently prohibited by US government “Category 2” restrictions).

So PAL isn’t sitting around while waiting for this elusive upgrade to Category 1. In fact, PAL began last month paying for the services of a world-renowned aviation consultant, Tim Neel, whose specialty is getting downgraded countries upgraded to Category 1 status.

No, Tim Neel isn’t advising PAL, as the airline has always been up to par with international standards. The airline is paying him solely to help the government-run Civil Aviation Authority of the Philippines. That’s how important this is for PAL’s sustained profitability.—Daxim L. Lucas

Monday, June 20, 2011

SC junks bid to reinstate PAL pilots

The Philippine Star
By Edu Punay
June 20, 2011 12:00 AM

MANILA, Philippines - The Supreme Court (SC) has dismissed a petition of a group of commercial pilots to reinstate the pilots of Philippine Airlines (PAL), who claimed they were illegally dismissed in 1998.

The High Court’s first division junked the motion for reconsideration of Airline Pilots Association of the Philippines (Alpap) on its 2002 ruling on the labor case, saying "a judgment that has attained finality is immutable and could thus no longer be modified.”

In a 13-page decision penned by Associate Justice Mariano del Castillo, the court held that reopening the case would pave the way for “vicious and vexatious proceedings,” considering that the grounds raised in the petition were already provided and resolved in the earlier decision of the court.

Chief Justice Renato Corona and Associate Justices Teresita Leonardo-de Castro, Roberto Abad and Jose Perez all concurred with the ruling.

The SC also noted that Alpap raised the issues “at a very late stage."

“Interestingly, these defenses were not raised and discussed when the case was still pending before the DOLE(Department of Labor and Employment) Secretary, the CA (Court of Appeals) or even before this court… Alpap was given all opportunities to present its evidence and arguments. It cannot now complain that it was denied due process,” it added.

The case stemmed from Alpap’s plea for DOLE to identify who among its members were terminated by PAL after the pilots went on strike on June 5, 1998.

Alpap alleged in their petition that a number of their members were unceremoniously dismissed even though they did not participate in the strike, which the high tribunal held as illegal in its April 10, 2002, decision.

The same ruling upheld PAL’s order to sack pilots who refused to report to work even after then Labor Secretary Cresenciano Trajano issued a return-to-work order on June 7, 1998.

DOLE in its June 1, 1999, resolution, also upheld PAL’s termination order.

The airline’s management dismissed some 600 Alpap members when they embarked on a strike to protest the flag carrier’s order for all pilots who have reached 20 years of service or have flown 20,000 hours, to retire regardless of age.

But some of the axed pilots said they were on official leave or were abroad when the strike occurred.

In an attempt to save their employment, the pilots asked the Dole on Jan. 13, 2003, to identify Alpap officers and members who were covered by the dismissal order.

In a letter dated July 4, 2003, then acting Labor Secretary Manuel Imzon argued that no less than the Supreme Court had affirmed the legality of PAL’s dismissal orders.

Imzon’s predecessor,Patricia Sto. Tomas, also raised the same argument in her letter to Alpap.

Pilots’ union loses illegal dismissal case vs. PAL

Manila Standard Today
June 20, 2011
by Rey E. Requejo

THE Supreme Court has affirmed a 2003 Labor Department decision favoring Philippine Airlines over a wrongful dismissal suit filed by its pilots.

The Court’s First Division also sustained a Court of Appeals ruling on the same case on Dec. 22, 2004, which ruled that then Labor secretary Patricia Santo Tomas and acting Secretary Manuel Imson did not abuse their powers when they denied a plea by the Airline Pilots Association of the Philippines to find out who among its officers and members had actually participated in a June 5, 1998 strike.

The controversy arose after the pilots’ union filed a notice of strike on Dec. 9, 1997 over the airline’s alleged unfair labor practices.

Citing the public interest, the Labor secretary assumed jurisdiction over the case and prohibited all strikes and lockouts at the national flag carrier, but the pilots struck anyway.

Two days later, the Labor Department issued a return-to-work order, but the pilots reported for work only on June 26, prompting the airline to refuse to take them back.

The pilots filed a complaint for illegal lockout against the carrier, but the National Labor Relations Commission eventually dismissed it for lack of merit. It also upheld the dismissal of the union officers and members who joined the June 5 strike and defied the government’s return-to-work order.

The pilots’ petitions before the Court of Appeals and the Supreme Court were similarly denied, but in a bid to revive the case in 2003, the pilots’ union asked the Labor Department to conduct proceedings to determine who among its officers and members should be reinstated or deemed to have lost their employment with the airline, since “a significant number” of members did not join the strike.

Imson merely noted the union’s request and did not act on it because of the final nature of the Supreme Court’s decision, prompting the pilots to file a case against him and Sto. Tomas for grave abuse of discretion.

The Court of Appeals dismissed their petition on Dec. 22, 2004.

Sunday, June 19, 2011

SC junks petition of pilots

Manila Bulletin
By LEONARD D. POSTRADO
June 19, 2011, 5:31pm

MANILA, Philippines -- The Supreme Court (SC) has junked a petition of a group of commercial pilots seeking the reinstatement of its members who were allegedly an unlawfully dismissed by the Philippine Airlines (PAL) over a labor dispute 13 years ago.

Saying that the case lacked merit, the SC First Division voted for the petition of Airline Pilots Association of the Philippines (ALPAP) to be dismissed.

They also argued that granting the petitioners' plea was tantamount to reopening the labor dispute case between PAL and Alpap which the court had already resolved with finality in 2002.

"A judgment that has attained finality is immutable and could thus no longer be modified. A proceeding may not be reopened upon grounds already available to the parties during the pendency of such proceedings,” read the 13-page decision of SC penned by Associate Justice Mariano del Castillo dated June 6.

Concurring with Del Castillo's opinion were Chief Justice Renato Corona and Associate Justices Teresita Leonardo-de Castro, Roberto Abad and Jose Perez.

Court records showed that the case stemmed from Alpap's plea asking the Department of Labor and Employment (DoLE) to identify specifically who among its members were terminated by PAL after the pilots went on strike on June 5, 1998.

Wednesday, June 15, 2011

PAL income expected to recover sharply

Financial turnaround comes despite weak market
By: Daxim L. Lucas
Philippine Daily Inquirer
1:22 am | Wednesday, June 15th, 2011

Philippine Airlines expects to report a profit for its recently ended fiscal year, marking a sharp turnaround for the flag carrier despite being saddled by persistent labor issues.

In an interview, PAL president and chief operating officer Jaime Bautista said he was expecting the airline’s bottom line to “land in positive territory” for its 2010-2011 fiscal year, which ended on March 31.

“The numbers look good and we are just waiting for the board to approve the figures later this month,” Bautista said, declining to provide more details.

According to airline sources, the Lucio Tan-owned airline will likely report “total comprehensive income” of about $80 million for the previous fiscal year—a turnaround from the $14.3-million loss reported in March 31, 2010.

“We would have beaten the $100-million mark [for last year], had it not been for all the unforeseen events we had in the first quarter [of 2011],” the source said, requesting anonymity because the numbers have yet to be reviewed by the company’s board.

In particular, the official pointed out that the effects of the earthquake and ensuing tsunami on the Japanese market and the spike in fuel prices caused by the unrest in the Middle East and North Africa dampened PAL’s net income toward the end of its fiscal year.

Bautista pointed out that the turnaround in PAL’s financial performance came despite an ongoing dispute with its labor unions, which have forced the airline to temporarily suspend its rationalization program.

“Given that we could save as much as $15 million annually with our planned streamlining efforts, the company could be a better contributor to the economy should we be allowed to implement our plans,” he said.

The PAL chief said the airline had recorded higher passenger traffic to and from key destinations, especially Hong Kong, Singapore, Bangkok and its recently inaugurated New Delhi service.

PAL had also experienced higher passenger traffic between Manila and the cities of Tokyo, Nagoya and Fukuoka, but this market fell off sharply in the wake of the twin tragedies that struck Japan in early March.

The airline’s overall load factor remained at the “high 70s,” Bautista said.

PAL flew about nine million passengers in fiscal year 2010-2011. This was slightly lower than the 9.3 million passengers it ferried in the previous year—a situation he attributed to active measures to shift domestic traffic to PAL’s Air Philippines subsidiary.

The planned shift in focus resulted in PAL reporting an increase in the number of international passengers but a slight decline on domestic routes.

“We didn’t renew the lease on six Airbus A320s for PAL, but instead took in new aircraft of the same type for Air Philippines,” he said.

Next year, however, PAL will add two new A320s to its fleet, plus another two Boeing 777s, which it hopes to finally use for its lucrative trans-Pacific service, should the country finally be upgraded back to Category 1 status by US aviation regulators.

Bautista emphasized the importance of bringing more B777s into PAL’s fleet—and maximizing their use with long-distance flights—as a key factor in improving the airline’s efficiency.

In addition, he said PAL must also be allowed to shed excess staffers and outsource non-core services from firms which can provide the same service more efficiently, similar to other airlines’ operations.

Tuesday, June 14, 2011

PAL hiring workers for ground duty

The Philippine Star
By Mary Ann Ll. ReyeS
June 14, 2011 12:00 AM

MANILA, Philippines - Philippine Airlines (PAL) will be hiring workers for ground duty to augment its current workforce and replace those who resigned over the past few weeks.

In a statement, PAL spokesperson Cielo Villaluna said the flag carrier intends to directly hire 60 customer service agents (CSAs) to man check-in counters and perform other ground duties. She said this would replace CSAs who either resigned or were pirated abroad.

“To avoid inconvenience to our passengers in terms of longer queues and waiting times, PAL management started processing applications for customer service agents,” she explained.

Contrary to claims by the PAL Employees Association (PALEA), Villaluna said PAL management would not hire people from MacroAsia Corp. “In fact, the decision to hire directly instead of getting a service provider was even proposed by PALEA officers during a management-union dialogue last week,” she said.

Villaluna explained that the original management proposal was to temporarily engage the services of MacroAsia for six months just to fill the gap. But since the union opposed this, management decided that it would just hire employees directly to end the debate, she stressed.

PAL service reps quit; other workers buck outsourcing

By Paolo G. Montecillo
Philippine Daily Inquirer
3:22 am | Tuesday, June 14th, 2011

A string of resignations has hit Philippine Airlines (PAL), forcing the Lucio Tan-led flag carrier to hire about 60 new customer service agents (CSA) to man check-in counters at local airports.

This comes amid an ongoing labor dispute that has stalled PAL’s plan to outsource most of its ground services.

“The flag carrier intends to directly hire 60 CSAs to man check-in counters and do other ground duty. They would replace CSAs who had either resigned or were pirated abroad,” said PAL spokesperson Cielo Villaluna in a statement.

“To avoid inconvenience to our passengers in terms of longer queues and waiting times, PAL management has started processing applications for CSAs,” she said.

Villaluna said PAL management’s original proposal was to temporarily engage the services of MacroAsia Corp. for six months just to fill the employee gap. MacroAsia is an aviation services provider also owned by Lucio Tan.

“But since the union opposed this, management decided that it would hire employees directly to end the debate,” she said.

Rehire former employees

The PAL Employees Association (Palea), which represents PAL ground workers or about half of the airline’s work force, said it opposed the idea since hiring MacroAsia would be tantamount to outsourcing their jobs—which the union opposes.

“We rejected the plan but offered to help in rehiring former PAL employees and recalling trainees who were not hired due to a hiring freeze implemented last year,” said Palea president Gerry Rivera in a statement.

On June 9, Palea said it had submitted a partial list of people interested in the position of customer service agents.

The union said it took offense at PAL’s proposal to hire MacroAsia, which Palea considers to be a “backdoor implementation” of PAL’s controversial outsourcing plan.

Palace, DOLE approved plan

PAL’s outsourcing plan was earlier approved by the Department of Labor and Employment and the Office of the President as the legal exercise of a “management prerogative” meant to cut costs. The decision is currently under appeal.

“PAL management is hoping for a speedy resolution of the outsourcing issue. The longer it drags, the more our workers are disenchanted and forced to seek greener pastures. Thus, for the sake of our workers who want to peacefully move on and for the convenience of thousands of passengers, we hope MalacaƱang would decide with finality on the outsourcing issue,” Villaluna said.

Palea members on Monday took to the streets to protest what they called “an exacerbation” of the labor dispute at PAL.

The motorcade, consisting of some 50 motorcycles and 10 cars stopped by the PAL In-Flight Center along MIA Road.

Security personnel and airport police prevented the motorcade from entering the Ninoy Aquino International Airport Terminal 2 where the MacroAsia office is located.

The blockage caused heavy traffic in the area for some 30 minutes to the chagrin of motorists, which Rivera said was not intentional.

Rivera said the union and PAL management have not yet reached an agreement on the temporary outsourcing arrangement set for June 16.

“We are ready to defend our jobs and the union if PAL does not back down from deploying contractual workers. We will be vigilant until there is a firm commitment for direct hiring instead of temporary outsourcing,” he said. With reports from Julie M. Aurelio and Philip C. Tubeza

PAL hiring 60 service agents despite layoffs

Manila Standard Today
June 14, 2011

PHILIPPINE Airlines on Monday said it was hiring 60 customer service agents despite the flag carrier’s plan to outsource nearly 3,000 airport ground workers and customer service agents.

An airline official said the hiring was prompted by the recent resignations of 80 agents, of whom 18 had been poached to work in Singapore’s Changi Airport by SATS Ltd. The rest found work in the Middle East.

The Lucio Tan-controlled carrier had initially planned to employ contractual labor from MacroAsia, a ground-handling company also controlled by Tan, for six months, but decided against it after the union protested, airline spokesman Cielo Villaluna said.

“To avoid inconvenience to our passengers in terms of longer queues and waiting times, the management decided to hire customer service agents directly,” she said.

A customer service agent here earns P15,000 to P30,000 a month compared with the US$1,500 a month and housing benefits being offered in Singapore.

The PAL Employees’ Association used the airline’s hiring of customer agents as an excuse to hold a protest motorcade on Monday. Eric B. Apolonio

Monday, June 13, 2011

We will directly hire CSAs to augment work force – PAL

Manila Bulletin
By SAMUEL P. MEDENILLA
June 13, 2011, 8:00pm

MANILA, Philippines — Philippine Airlines (PAL) Monday denied it will outsource workers to augment its dwindling work force as earlier claimed by the ground-based labor union.

In a statement, PAL spokesperson Cielo Villaluna said PAL will directly hire 60 Customer Service Agents to replace those who resigned or had been pirated over the past few weeks.

Villanueva said PAL will directly hire 60 CSAs to man check-in counters and perform other ground duty.

"To avoid inconvenience to our passengers in terms of longer queues and waiting times, PAL management started processing applications for Customer Service Agents," she said.

She said that PAL does not plan to hire people from aviation and logistics provider MacroAsia Corporation as earlier claimed by Philippine Airlines Employees Association (PALEA).

“Claims by PALEA that PAL management will start using MacroAsia workers to man check in counters and departure gates starting June 16 is totally untrue and baseless," she said.

Meanwhile, PALEA Gerardo Rivera reiterated in a statement it will go on strike if PAL will push through its plans to outsource its customer service departments.

Monday, June 6, 2011

CA junks FASAP petition

Manila Bulletin
June 6, 2011
By LEONARD D. POSTRADO

MANILA, Philippines -- The Court of Appeals has junked the petition filed by the Flight Attendants’ and Stewards Association of the Philippines (FASAP) seeking to set aside a National Labor Relations Commission (NLRC) decision which dismissed the group's complaint for unfair labor practice against Philippine Airlines, Inc.(PAL), the country’s national carrier.

In a 10-page ruling penned by Associate Justice Danton Bueser, the CA’s Tenth Division denied FASAP’s petition for certiorari and affirmed the decision of NLRC, which was issued on February 25, 2009, to dismiss FASAP's complaint against PAL.

“After a careful review of the facts, the Court finds that the respondents cannot be made responsible for ULP (unfair labor practice). The petitioner, as the alleging party, has the burden of proving the ULP with substantial evidence as the same is punishable with both civil and/or criminal sanctions,” said the CA ruling.

The appellate court pointed out that the petitioners failed to show prima facie proof that PAL was guilty of unfair labor practice.

“Here, there was no clear and substantial evidence confirming that the management decision to deploy line administrators to act as flight pursers interferes or restrains petitioner’s right to self-organize,” it added.

Concurring with the ruling were Associate Justices Hakim Abdulwahid and Ricardo Rosario.

Court records showed that FASAP filed a complaint for unfair labor practice against PAL and the line administrators tasked as flight pursers on September 29, 1997.

An airline purser or flight purser usually oversees the flight attendants to ensure airplane passengers are safe and comfortable.

It claimed that on December 19, 1996, it entered into an agreement with the respondents for the temporary utilization of domestic cabin crew, contractual crew and administrative personnel for international operations of PAL.

However, after the expiration of the agreement, FASAP said respondents still continued to deploy administrative personnel, particularly line administrators, to act as flight pursers.

FASAP said there was violation not only of the December 1996 joint deal but also of the Collective Bargaining Agreement (CBA).

Unfair labor practice case vs PAL junked

BusinessWorld
June 6, 2011

THE COURT of Appeals has dismissed an unfair labor practice claim lodged by the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) against Philippine Airlines (PAL) regarding the latter’s use of line administrators as flight attendants in 1996.
The appellate court’s 10th Division said in a May 26 ruling that PAL’s transfer of line administrators as flight attendants did not constitute unfair labor practice or contractualization since one of line administrators’ duties is to serve as flight attendants.

The case stemmed from a December 1996 deal between FASAP and PAL for the temporary assignment of line administrators as flight attendants to avert the manpower shortage and losses that PAL has been experiencing at that time.

However, FASAP filed a complaint at the National Labor Relations Commission (NLRC) in September 1997 after PAL continued to deploy the administrators as flight attendants despite the expiration of their agreement.

In September 1998, the NLRC rendered a decision favoring FASAP and finding PAL guilty of acts of unfair labor practice. PAL was also ordered to stop the practice.

However, on appeal by PAL, the NLRC reversed its decision and dismissed FASAP’s claims for loss of productivity pay, per diem, bar sales commission, duty time incentive, tech-stops pay, reserve pay, and damages.

In its decision, the NLRC said that the move of PAL to recruit its own line administrators to become flight attendants cannot be considered contractualization as they are also employees of PAL, and it is well within their job description to work as flight attendants. “There is no reason for us not to adopt the above ruling,” the appellate court’s decision read, citing the NLRC decision.

Furthermore, the court said that FASAP failed to prove that PAL’s move to use line administrators as flight attendants had interfered with their right to self-organization, which would then become unfair labor practice.

“The court finds that the respondents cannot be made responsible for [unfair labor practice]...,” the decision stated. -- Nathaniel R. Melican

Wednesday, May 11, 2011

PAL taps US aviation expert to help CAAP

The Philippine Star
By Mary Ann LL. Reyes (The Philippine Star) Updated May 11, 2011 12:00 AM

MANILA, Philippines - Flag carrier Philippine Airlines (PAL) has signed a contract with Tim Neel & Associates, LLC (TNA), a US-based aviation consultant, to train and provide technical assistance to the Civil Aviation Authority of the Philippines (CAAP) to help the country regain full compliance with international aviation safety standards.

In a statement, PAL president and COO Jaime Bautista said yesterday the contract with TNA involves technical assistance in Aviation Safety Oversight. It is envisioned to provide CAAP with a “roadmap” to comply with safety standards of the International Civil Aviation Organization (ICAO).

PAL’s contract with TNA involves technical assistance and delivery to CAAP “at the shortest time possible” of a comprehensive regulatory system including an electronic database, inspector handbooks and technical guidance, advisory circulars, updates to the Philippine Civil Aviation Regulations (PCARs) and other related matters. Total contract cost is confidential.

“TNA will provide training and software at no cost to the Philippine government since PAL will shoulder all expenses for the duration of the project. As the regulatory agency, CAAP, on the other hand, would be the one to implement needed reforms,” said Bautista.

Recognizing the importance of regaining compliance with ICAO safety standards, lifting of the European Union blacklist and Category 2 rating by the US Federal Aviation Administration, Bautista said the PAL board of directors – upon the suggestion of PAL chairman Lucio Tan – offered to help government by tapping TNA’s services.

As the only Philippine carrier flying to the United States, Bautista said it is in PAL’s best interest for the country to immediately get out of Category 2. The US FAA’s rating downgrade prevents PAL from launching new routes, adding more flights and replacing its current fleet flying to and from the US. It also placed the Philippines in the company of Category 2 countries like Bangladesh, Congo, Gambia, Guyana, Ivory Coast, Zimbabwe and others.

“While PAL is the principal beneficiary of the Category 2 lifting, the same will also benefit all other Philippine carriers with plans to operate in the US and other US territories. More importantly, if CAAP is fully compliant with ICAO standards, it could also pave the way for the lifting of ICAO’s ‘significant safety concerns’ and the EU blacklist of Philippine carriers,” he stressed.

Bautista added that PAL treats the TNA contract not only as a form of technical assistance to the Philippine government but also as an “investment” in preparation for the delivery of PAL’s four Boeing 777-300ERs in 2012 and 2013. “In the short term, it would also allow PAL to make use of its two B777s to the US, the route they were originally intended for,” he stressed.

PAL’s technical assistance to CAAP is not without precedent. Bautista said that early this year, four airlines namely, PAL, Cebu Pacific, Airphilexpress and Zest Air, also provided assistance to CAAP for the development of GPS approaches or Required Navigation Approach (R-Nav) for six of the country’s airports.

Bautista said TNA, a consulting firm owned by retired Brig. Gen. Tim Neel, is a company specializing in international aviation safety matters, including the assessment of aviation safety standards at government civil aviation authorities, international air carriers and airports.

PAL mounts effort to upgrade PH status

Philippine Daily Inquirer
May 11, 2011
By Paolo Montecillo

MANILA, Philippines—Flag carrier Philippine Airlines (PAL) has taken on a proactive stance to ensure that the Federal Aviation Administration (FAA) will lift its ban on local airlines mounting extra flights to the United States.

In a statement on Tuesday, the Lucio Tan-led carrier said it would help the Civil Aviation Authority of the Philippines (CAAP) implement reforms to convince the FAA to upgrade the Philippines from its “category 2” status.

The “category 2” status from the FAA effectively bans local airlines from expanding operations in the United States. This ruling affects only PAL, which is the sole local carrier that has operations and the capability to fly across the Pacific.

Also, PAL said it had signed a contract with Tim Neel & Associates, LLC (TNA), a US-based aviation consultant owned by former FAA executive Tim Neel, to train and provide technical assistance to the CAAP to help the country regain full compliance with international aviation safety standards.

TNA will also help the CAAP craft a “comprehensive regulatory system, including an electronic database, inspector handbooks and technical guidance, advisory circulars, updates to the Philippine Civil Aviation Regulations,” PAL president Jaime Bautista said.

The company hopes TNA will be able to help lift the US ban on local airlines “at the shortest possible time,” Bautista said.

Earlier, the Department of Transportation and Communications (DoTC) announced the partnership with TNA.

PAL said it was the first to get in touch with TNA, which agreed to help the Philippine government.

TNA is a company specializing in international aviation safety matters, including the assessment of aviation safety standards in government civil aviation authorities, international air carriers and airports.

The DoTC said this would be part of reforms meant to improve the country’s image and help the aviation industry grow.

The FAA downgraded the Philippines to Category 2 from Category 1 in 2008 after a safety audit was conducted in November 2007. During the audit, the FAA found that some policies of the local aviation sector were below international standards.

The FAA then banned airlines from the Philippines from adding flights to the United States.

One issue was the lack of qualified personnel to carry out procedures meant to ensure the safety of the country’s air transport sector.

Soon after, the European Union also raised significant safety concerns (SSCs) that resulted in the banning of Philippine carriers from landing in European airports.

“(Neel) recently worked in Ghana where he was able to help the local aviation authorities regain their Category 1 rating in just a few months.... We believe he can do the same for the Philippines,” Transportation Undersecretary Glicerio Sicat said.

Tuesday, May 10, 2011

PAL taps aviation expert to help regain Category 1

Business Mirror
Tuesday, 10 May 2011 18:48 Recto Mercene / Reporter

Flag carrier Philippine Airlines (PAL) on Tuesday said it has tapped the services of Tim Neel & Associates (TNA), a US-based aviation consultant, to train and provide technical assistance to the Civil Aviation Authority of the Philippines (Caap) to help the country regain full compliance with international aviation-safety standards.

In a statement, PAL president and chief operating officer Jaime J. Bautista said the contract with TNA involves technical assistance in Aviation Safety Oversight. It is envisioned to provide Caap with a “road map” to comply with safety standards of the International Civil Aviation Organization (Icao).

The Philippines remains on Category 2 status pending inspections by the Federal Aviation Administration (FAA) and the European Union this year.

PAL’s contract with TNA involves technical assistance and delivery to Caap “at the shortest time possible” a comprehensive regulatory system, including an electronic database, inspector handbooks and technical guidance, advisory circulars, updates to the Philippine civil-aviation regulations and other related matters.

The amount of the contract cost is confidential, Bautista said.

“TNA will provide training and software at no cost to the Philippine government since PAL will shoulder all expenses for the duration of the project. As the regulatory agency, Caap, on the other hand, would be the one to implement needed reforms,” said Bautista.

Recognizing the importance of regaining compliance with Icao safety standards, lifting of the European Union blacklist and Category 2 rating by the US FAA, Bautista said the PAL board of directors—upon the suggestion of chairman Lucio Tan—offered to help the government by tapping TNA’s services.

As the only Philippine carrier flying to the United States, Bautista said it is in PAL’s best interest for the country to immediately get out of Category 2.

The US FAA’s rating downgrade prevents PAL from launching new routes, adding more flights and replacing its current fleet flying to and from the US. It also placed the Philippines in the company of Category 2 countries like Bangladesh, Congo, Gambia, Guyana, Ivory Coast, Zimbabwe and others.

At the same time, although no Philippine carriers fly to Europe, the EU discourages its citizens from patronizing its carriers when flying into the country.

“While PAL is the principal beneficiary of the Category 2 lifting, the same will also benefit all other Philippine carriers with plans to operate in the US and other US territories,” Bautista added.

He also said if Caap is fully compliant with Icao standards, it could also pave the way for the lifting of Icao’s “significant safety concerns” and the EU blacklist of Philippine carriers.

Bautista added that PAL treats the TNA contract not only as a form of technical assistance to the Philippine government but also as an “investment” in preparation for the delivery of PAL’s four Boeing 777-300ERs in 2012 and 2013.

“In the short term, it would also allow PAL to make use of its two B777s to the US, the route they were originally intended for,” he said.

PAL’s technical assistance to Caap is not without precedent. Bautista noted that early this year four airlines, namely, PAL, Cebu Pacific, AirphilExpress and Zest Air, also provided assistance to Caap for the development of GPS approaches or required navigation approach for six of the country’s airports, following the failure of the aging very high frequency omnidirectional range and the instrument landing system.

According to Bautista, TNA, a consulting firm owned by retired US Brig. Gen. Tim Neel, is a company specializing in international aviation-safety matters, including the assessment of aviation safety standards at government civil-aviation authorities, international air carriers and airports.

Neel’s team is composed of seasoned auditors capable of conducting safety oversight audits and has conducted dozens of aviation-safety oversight audits and technical-assistance projects for foreign governments and foreign airlines covering most regions of the world, PAL said.

Sunday, May 8, 2011

DOT and PAL lead Philippine India Travel Exchange 2011

Manila Bulletin
May 8, 2011

Department of Tourism Secretary Alberto A. Lim welcomed the Indian travel industry delegation and their Philippine counterparts, hotels and travel tour operators, in an exclusively organized business-to-business meeting, held recently at the Hyatt Hotel and Casino Manila.

The Philippine Airlines’ thrice weekly direct flights from India to the Philippines and another three times per week via Bangkok,  is a most welcome development for Philippine Tourism says Secretary Lim. “We are expecting more Indian tourists to come in the next years, as we have the right environment for this market,” he added.

Right now the Philippines is receiving 36,600 Indian tourists out of their 14 million outbound tourists, but with the help of the Indian tour operators and travel industry players, the DOT hopes that the numbers will increase.

Through a travel exchange format, visiting Indian tour operators were given time to meet and interact with the Philippine travel industry players during this milestone event.

“Reaching out to travel trade and media partners is vital,” the Secretary added. “We hope to get tour packages from India to the Philippines, add more flights to the Philippines and maintain a strong and long-lasting relationship.”

Tuesday, May 3, 2011

It’ll be far from a dog’s life for PAL K-9s in retirement

Philippine Daily Inquirer
May 3, 2011
By Jerry E. Esplanada

MANILA, Philippines—At Philippine Airlines, the cliche about canines being man’s best friend could not be more apt.

PAL’s crack unit of explosive detection dogs, or EDDs, retired 11 of its more than 50 hounds on Labor Day, making sure they were sent off with “well-deserved recognition.”

“Instead of being sold off like most retiring canines, we’re making arrangements for our hardworking dogs Bruno, Mars, Jupiter, Mercury, Pluto, Triton, Aries, Hector, Hera, Heyda, and Diana to be adopted by their own handlers,” Joey de Guzman, PAL vice president for corporate communications, told the Inquirer.

Handler-dog bond

De Guzman said “this will ensure that the bond forged over many years between the dogs and their handlers will not be severed.”

The 11 Belgian Malinois, all part of PAL's own breeding program, “will be turned over to the eager and waiting arms of their handlers upon the release of their adoption papers,” De Guzman added.

“Under an agreement, the handlers can’t sell the dogs. We want to make sure that like adoptive parents, they will take good care of them. The canines have been an important part of the PAL family and we want to treat them with dignity, even in retirement,” De Guzman said.

He said that, “initially, PAL thought of selling them. But we realized that it's not the proper way to send off our specially-trained dogs.”

Most of the retirees had served PAL for five years.

No longer effective

“For EDDs, the average length of service is eight to nine years. But we’re retiring this batch early. According to the dogs’ trainers and vets, they’re no longer effective as EDDs, if not productive as breeders,” said De Guzman.

PAL is the “only Philippine carrier with its own K-9 unit,” noted De Guzman.

The airline’s K-9 program, began in 2004, is a “mark of PAL’s commitment to robust security,” he added.

“Each year, PAL spends close to P2 million just for dog food, grooming and veterinary needs. The figure rises to almost P15 million annually with the inclusion of utility and manpower costs of dog handlers, trainers and helpers. For every canine, a handler is assigned by the airline,” said De Guzman.

The K-9 unit’s expenses “exclude the upkeep of PAL's sprawling kennel (near the airline’s Flight Operations Center on Andrews Avenue, Pasay City), where 55 imported and locally-bred Belgian Malinois, Labrador Retrievers and German Shepherds are housed. The facility has an open space big enough for the dogs to play, run and train in,” De Guzman said.

“Most of the dogs were imported at an average cost of $6,000, or about P250,000 each,” he said.

Out in the field, PAL’s canines are “key sentinels in the wearying and often dangerous work of sniffing out possible explosive substances.”

“Each dog is on duty at least three to four hours daily. They are assigned to the PAL hub at the NAIA Centennial Terminal and PAL’s cargo terminal. They also inspect the airline's fleet of 19 wide-body Boeing 777s and 747s and Airbus 340s and 330s which serve a total of 20 domestic and 25 international destinations,” said De Guzman.

The EDDs “complement the efforts of airport and aviation police who have come to appreciate the additional man- and dog-power fielded by PAL,” he added.

The crack K-9 unit has reaped several awards in contests like the K-9 Explosive Detection Competition organized by the Manila International Airport Authority in December 2009.

Thursday, April 28, 2011

No strike as PAL arbitration starts

By Nancy C. Carvajal, Sara Pacia, Philip Tubeza
Philippine Daily Inquirer
First Posted 07:37:00 04/28/2011

MANILA, Philippines—It’s status quo for now at the Philippine Airlines.

“No strike yet, for now everything remains the same and we are directed to submit our position papers on the issue not later than May 9,” said Gerry Rivera, president of the Philippine Airlines Employees Association (PALEA).

The National Labor Relations Commission (NLRC) conducted the first arbitration hearing between PAL management and employees Wednesday.

Labor Secretary Rosalinda Baldoz earlier handed over the labor dispute to the NLRC for compulsory arbitration.

PALEA had accused PAL management of refusal to enter into a new collective bargaining agreement (CBA) and filed a notice of strike at the Department of Labor and Employment (DoLE), but this was stopped by Baldoz.

PALEA wanted to include the issue of contractualization in the CBA talks but this was rejected by PAL management.

PAL president Jaime J. Bautista, who attended the hearing, said they are willing to talk with the airline’s labor union.

However, Bautista said PAL would still push through with the outsourcing of its in-flight catering, airline service and call center reservations.

He said it would be absurd for the PAL management to agree to include the “spin-off” issue in the CBA negotiations when it has already secured the green light from DoLE and MalacaƱang to proceed with the plan.

“We should not include any more a case which has been decided. Let us honor the decision of DoLE and the President,” he said.

Spin-off can’t be undone, PAL insists

by Eric B. Apolonio
Manila Standard Today

Philippine Airlines on Wednesday maintained its position that a new collective bargaining agreement with its ground workers’ union should not include discussions on the ‘spin-off’ issue as the same has been upheld as a legal and valid exercise of management prerogative.

 Appearing before the National Labor Relations Commission, PAL president and chief operating officer Jaime J. Bautista reiterated the flag carrier’s position that the spin-off plan involving catering, call center reservations and groundhandling departments “is firm, non-negotiable and therefore cannot be part of a new CBA that the union wants.”

 The Labor department under President Arroyo and even President Aquino recognized the PAL management’s right to restructure its operations to ensure long term survival and save jobs, Bautista stressed.

 While the ‘spin-off’ will result in the early retirement of some 2,600 ground workers, these employees will be absorbed/hired by third party service providers, Bautista said.

 “No man will be left behind,” he said. “Those who are willing to work for the service providers have secure jobs waiting for them, while the remaining 5,000 workers of PAL will have a better chance of keeping their jobs in the leaner but meaner airline.”

 Bautista also belied claims by the PAL employees association that management refuses to convene negotiations for a new CBA.

 He said PAL submitted its counter proposal to the collective bargaining agreement last March 28 at the National Conciliation and Mediation Board. “This is the best proof that PAL is willing to negotiate with its union,” he stressed.

 He added that it will be absurd for the PAL management to agree to include the ‘spin-off’ issue in the CBA negotiations when it has already secured the green light from DOLE and Malacanang to proceed with the same.

PAL stands firm on spin-off issue

By Rudy Santos
(The Philippine Star)
Updated April 28, 2011 12:00 AM

MANILA, Philippines – Philippine Airlines (PAL) maintained its position yesterday that a new collective bargaining agreement (CBA) with its ground union should not include discussions on the ‘spin-off’ issue as the same has been upheld as a legal and valid exercise of management prerogative.

Appearing before the National Labor Relations Commission (NLRC), PAL president and COO Jaime J. Bautista reiterated the flag carrier’s position that the spin-off plan involving PAL’s catering, call center reservations and groundhandling departments “is firm, non-negotiable and therefore cannot be part of a new CBA that the union wants.”

“The Department of Labor and Employment (DOLE) during the time of President (Gloria Macapagal) Arroyo and even President (Benigno Simeon) Aquino recognized PAL management’s right to restructure its operations to ensure long term survival and save jobs,” Bautista stressed.

He explained that while the ‘spin-off’ will result in the early retirement of

some 2,600 PAL ground workers, these employees will be absorbed/hired by third party service providers. “No man will be left behind. Those who are willing to work for the service providers have secure jobs waiting for them, while the remaining 5,000 workers of PAL will have a better chance of keeping their jobs in the leaner but meaner airline,” Bautista said.

He also belied claims by the union that management refuses to convene negotiations for a new CBA as claimed by leaders of the PAL Employees Association (PALEA).

He said PAL submitted its counter proposal to the collective bargaining agreement last March 28 at the National Conciliation and Mediation Board (NCMB). “This is the best proof that PAL is willing to negotiate with its union,” he stressed.

He added that it will be absurd for PAL management to agree to include the ‘spin-off’ issue in the CBA negotiations when it has already secured the green light from DOLE and MalacaƱang to proceed with the same.

Wednesday, April 27, 2011

PAL firm CBA talks must not include issue of spinoff

Wednesday, 27 April 2011 19:37  Sara Susanne D. Fabunan / Correspondent
Business Mirror

FLAG carrier Philippine Airlines (PAL) maintained its position Wednesday that a new collective bargaining agreement (CBA) with its ground union should not include discussions on the issue of the planned spinoff of several services.

Appearing before the National Labor Relations Commission (NLRC), PAL president and chief operating officer Jaime J. Bautista reiterated the flag carrier’s position that the spinoff plan involving PAL’s catering, call center reservations and groundhandling departments “is firm, non-negotiable and therefore cannot be part of a new CBA that the union wants.” The decision has already been upheld as a legal and valid exercise of management prerogative.

“The Department of Labor and Employment [DOLE] during the time of President [Gloria] Arroyo and even President Aquino recognized the PAL management’s right to restructure its operations to ensure long-term survival and save jobs,” Bautista stressed.

He explained that while the planned spinoff will result in the early retirement of some 2,600 PAL workers, these employees will be absorbed or hired by third-party service providers.

“No man will be left behind. Those who are willing to work for the service providers have secure jobs waiting for them while the remaining 5,000 workers will have a better chance of keeping their jobs in the leaner but meaner airline,” Bautista said. 

He also belied claims by the union that management refuses to convene negotiations for a new CBA as claimed by leaders of the PAL Employees Association.

Bautista said PAL submitted its counter proposal to the CBA on March 28 at the National Conciliation and Mediation Board. “This is the best proof that PAL is willing to negotiate with its union,” he stressed.

He added that it will be illogical for the PAL management to agree to include the spinoff issue in the CBA negotiations when it has already secured the green light from DOLE and the administration to proceed with the same.

PAL stands firm on ‘spin-off’ stance

By LESLIE ANN G. AQUINO
April 27, 2011, 6:50pm
Manila Bulletin

MANILA, Philippines — The Philippine Airlines (PAL) Wednesday maintained its position that a new collective bargaining agreement (CBA) with its ground union should not include discussions on the “spin-off” issue as the same has been upheld as a legal and valid exercise of management prerogative.

PAL President and COO Jaime J. Bautista, in a statement, said the flag carrier’s position that the spin-off plan involving PAL’s Catering, Call Center Reservations, and ground-handling departments remains firm, non-negotiable, and “therefore cannot be part of a new CBA that the union wants”.

“The Department of Labor and Employment (DoLE), during the time of President [Gloria Macapagal] Arroyo and even President [Benigno Simeon] Aquino recognized the PAL management’s right to restructure its operations to ensure long term survival and save jobs,” he said.

Bautista said although the “spin-off” will result in the early retirement of some 2,600 PAL ground workers, these employees will be absorbed/hired by third party service providers.

“No man will be left behind. Those who are willing to work for the service providers have secure jobs waiting for them, while the remaining 5,000 workers of PAL will have a better chance of keeping their jobs in the leaner but meaner airline,” he said.

Bautista then belied claims by the union that management refuses to convene negotiations for a new CBA as claimed by leaders of the PAL Employees Association (PALEA).

He said PAL submitted its counter proposal to the collective bargaining agreement last March 28 at the National Conciliation and Mediation Board (NCMB).

“This is the best proof that PAL is willing to negotiate with its union,” said Bautista.

He added that it will be absurd for the PAL management to agree to include the ‘spin-off’ issue in the CBA negotiations when it has already secured the green light from DoLE and MalacaƱang to proceed with the same.

Thursday, April 21, 2011

PAL expects passenger volume to increase this year

By Mary Ann Reyes (The Philippine Star) Updated April 21, 2011 12:00 AM

MANILA, Philippines - The number of Philippine Airlines (PAL) passengers flying this Holy Week is expected to increase slightly compared to last year, as the flag carrier maintains its regular domestic and international schedules with minor adjustments in domestic flights on Good Friday and Black Saturday.

From April 17 (Palm Sunday) to April 24 (Easter Sunday), PAL expects to fly close to 200,000 passengers throughout its network of 26 international and 20 domestic destinations.

The flag carrier’s international passengers are expected to exceed 90,000 - a five percent increase compared to 2010. Total domestic passengers are expected to reach about 100,000.

Last year, actual domestic passengers flown were 97,838. The positive passenger numbers indicate continuing confidence in the flag carrier despite many challenges.

All flights for Holy Week - except 16 domestic flights - will follow published schedules.

In observance of Good Friday and Black Saturday, the following will not be operated: April 22 - PR131/132 & PR157/158 (Manila-Bacolod, vice versa); PR849/850 & PR855/856 (Manila-Cebu, v.v.); PR185/186 & PR281/282 (Manila-Cagayan de Oro, v.v.); PR187/188 (Manila-Cotabato, v.v.); PR821/822 (Manila-Davao, v.v.); PR139/140 & PR143/144 (Manila-Iloilo, v.v.); PR393/394 (Manila-Tacloban, v.v.); and PR123/124 (Manila-Zamboanga, v.v.)

April 23 - PR843/844 (Manila-Cebu, v.v.); PR181/182 (Manila-Cagayan de Oro, v.v.); PR139/140 & PR143/144 (Manila-Iloilo, v.v.)

PAL employees who are required to report for duty between April 21 (Maundy Thursday) and April 24 (Easter Sunday) shall receive special incentive pay.

PAL is giving the additional P700 per day on top of the daily rate, holiday pay (double the daily rate) and overtime to those required to work during the holidays. This includes pilots, flight attendants, ground staff, administrative personnel and management officials. The extra remuneration is being given as part of PAL’s 70th anniversary celebration.

Tuesday, April 19, 2011

Birds strike instead of PAL employees

SPY BITS By Babe Romualdez (The Philippine Star) Updated April 19, 2011 12:00 AM

Last Friday, PAL’s brand new Boeing 777 got struck by a bird shortly before landing at the Vancouver International Airport. Fortunately, no one got hurt, but chaos and havoc naturally reigned when the plane’s return flight PR 117 to Manila had to be cancelled. The incident inevitably made PAL’s flight PR 107 from Las Vegas via Vancouver to become overbooked for its return flight to Manila. As of this writing, PAL’s Boeing 777 is still on the ground waiting for an engine howling part to be replaced. Unbelievably, the said part could not be secured immediately despite the fact that Boeing’s Everett factory in Washington state is just a hop away across the border from Vancouver.

 While PAL has been able to avert strike threats from employees after talks brokered by the Department of Labor and Employment repeatedly failed, it seems the flag carrier can’t do much about bird strikes. The fowl that hit the plane was most likely a Canadian goose, but the real albatross that hangs on the head of PAL is the fact that their brand new Boeing 777 jets are still barred from entering the United States because for some unknown reason, the Philippines’ category 2 rating from the Federal Aviation Authority has not been lifted despite the fact that the issues involved have nothing to do with PAL’s excellent safety and maintenance record – which certainly is better than most US airlines.

In any case, climate change and early bird migration is probably the reason why there seems to be a growing incidence of bird strikes reported in the western hemisphere. Also recently, a Cathay Pacific flight from Hong Kong bound for San Francisco had to be diverted to Vancouver because the plane hit a flock of birds. There has been some conjecture about the design of Boeing’s engines due to several bird strike incidents showing the birds being sucked in and getting rotated in the engine fan blades, thereby causing what is called a cascading failure. According to experts, this type of bird strike, which is also called “avian ingestion” for obvious reasons, mostly happens during takeoff when the plane is on a low altitude and the engine is turning at a very rapid rate.

These bird strikes have caused a lot of damage to the whole airline industry estimated at $1.2 billion yearly. This is also probably the worst time of the year for airlines because a lot of bird migration occurs due to seasonal changes with spring now heralding a much warmer weather.

It can be recalled that in 2009, a domestic US Airways flight 1549 (from La Guardia airport in New York and headed for North Carolina) suffered total engine failure six minutes after takeoff when a flock of Canadian geese hit the engines. The pilot, Captain Chesley “Sully” Sullenberger, successfully ditched his aircraft over the Hudson River with no casualties whatsoever – an unprecedented feat that turned him into a hero. The incident has since been called the “Miracle on the Hudson,” and consequently described as “the most successful ditching in aviation history.” Captain Sully has since retired from US Airways a year after the incident but continues to be an active airline safety advocate.

The incident also triggered calls for the Federal Aviation Authority to similarly ditch its proposal that would prevent access to a critical database on the number of bird strikes that have been happening. The public outcry to release such records compelled US president Barack Obama to release a memo which partly read, “The government should not keep information confidential merely because public officials might be embarrassed by disclosure, because errors and failures might be revealed, or because of speculative or abstract fears.”

Lorenzo’s oil

With the recent filing of plunder charges against former Agriculture Secretary Luis “Cito” Lorenzo by the Office of the Ombudsman, you would think the former Cabinet Official would be losing most of his friends overnight. Fortunately for Cito, a number of his friends have decided to rally behind him because many of them strongly feel that he is just being made a scapegoat. Close friends of the former Agriculture Secretary vowed to keep the “oil” burning until he is completely exonerated and cleared of all the charges.

Not-so-holy alliance

Opposition Congressman and RH bill main proponent Edcel Lagman found himself in a “not-so-holy” alliance with President Noynoy Aquino who recently declared at the UP graduation exercises that he is determined to push the Reproductive Health bill despite the threat of excommunication by the Catholic Church. A number of people who did not vote for P-Noy have also decided to take a stand and rally behind the beleaguered president. They, too, are ready “to be excommunicated” – or so they declare!

Spy Tidbit

– Former president Joseph Estrada celebrated his 74th birthday with former cabinet officials and a small group of friends at his new condo penthouse unit in Mandaluyong. Erap has definitely decided to sell his house in Polk St. in Greenhills, San Juan. Like most retirees, the former president has also decided to downsize.

Spy Bits note: We will be taking time off for the Holy Week starting this Thursday and will be back next Tuesday. Have a blessed Holy Week!

Monday, April 18, 2011

Good news and bad news on tourism

DEMAND AND SUPPLY
By Boo Chanco
(The Philippine Star)
Updated April 18, 2011 12:00 AM

Mabuhay

One of the incentives to take at least one regional flight on Philippine Airlines monthly is the chance to read and maybe take home a copy of Mabuhay, its excellent in-flight magazine. Edited by Jun Ventura, it had been perhaps the best promoter of Philippine tourism through the years. Its excellent photography and articles always make a Pinoy reader proud of his country. And for foreigners, it gives many compelling reasons to visit.

The April issue I had the chance to read on my flight last Wednesday is particularly interesting. Jun’s special feature on Davao provides a lot of information the typical Metro Manilan probably didn’t know about the wonders of this major metropolis in the south. Also laudable are the stories on Antique and CamSur. One wonders why the tourism sections of the major broadsheets don’t have features as colorful and compelling as Mr. Ventura’s Mabuhay.

Maybe the Department of Tourism and PAL can work together to give more exposure to this magazine as part of a good tourism promotions program. PAL should consider making the magazine available in the bookstores and hotel lobby shops. That could help increase traffic to our tourist sites and I guess, PAL ticket sales. Mabuhay could also be a very effective selling tool for our tourism attaches abroad.

My congratulations to Jun V for this great work.

Saturday, April 16, 2011

PAL offers discounts to Filipino evacuees

April 16, 2011
Manila Standard Today
by Jeremiah F. de Guzman and Eric B. Apolonio

FLAG carrier Philippine Airlines said Fridiay it is cutting the fares on its flights from Japan to Manila to help Filipino evacuees from Fukushima Prefecture.

The price of a one-way ticket from Narita to Manila or Cebu will be reduced for a limited time to about $335 from $500, the airline said.

President and chief executive Lucio Tan ordered the discounts, the airline said.

More than 55 Filipinos living within the 100-kilometer radius of the Fukushima Dai-ichi Nuclear Power Plant are expected to arrive in Manila on Sunday on board flight PR 431 at the Ninoy Aquino International Airport Terminal 2.

Filipino evacuees were advised to coordinate with the Philippine Embassy in Japan, which is in charge of the repatriation.

Only Filipino evacuees facing involuntary evacuation from areas within the danger zone declared by authorities may avail themselves of the “all-in” discounted tickets, which exclude Japanese taxes and other fees.

Meanwhile, the Japanese government ordered the operator of Japan’s tsunami-damaged nuclear plant Friday to pay an initial $12,000 for each household forced to evacuate because of leaking radiation, a handout some of the displaced slammed as too little.

The utility will start paying out the roughly $600 million in compensation April 28 to those forced to evacuate, with families getting about $12,000 and single adults getting about $9,000, the government said.

Roughly 48,000 households living within about 19 miles of the crippled Fukushima Dai-ichi nuclear plant would be eligible for the payments, said Trade Ministry spokesman Hiroaki Wada. With AP

PAL cuts fare on flights from Narita to Manila

By Rudy Santos
(The Philippine Star)
Updated April 16, 2011 12:00 AM

MANILA, Philippines -  Philippine Airlines (PAL) slashed its fare by more than 30 percent on flights from Narita, Japan to Manila as a way of helping Filipino evacuees from Fukushima prefecture.

The price of a one-way ticket from Narita to Manila or Narita-Cebu has been reduced for a limited time from $500 to $335.

PAL chairman and CEO Lucio Tan ordered the discounting of plane tickets for Filipinos following reports of high radiation levels near Fukushima.

But only those facing involuntary evacuation from areas declared as danger zones by Japanese authorities can avail themselves of the “all-in” discounted tickets, excluding Japanese taxes or fees.

They are advised to coordinate with the Philippine embassy in Japan in charge of overseeing the repatriation.

Regular passengers, on the other hand, may buy their tickets through the PAL sales office in Narita Airport, PAL ticket offices in Tokyo, Osaka, Fukuoka and Nagoya, and accredited travel agents in Japan or the PAL website.

PAL said the latest airlift assistance is the company’s contribution to the Philippine government in charge of repatriating Filipino victims of earthquake, tsunami and radiation leaks.

The company said the reduced fares are just enough to recover actual cost of operating the flights such as jet fuel, landing and parking fees, crew salaries, other airport fees, among others.

A few weeks ago, PAL started shipping thousands of bottles of water to Japan.                                          

Donated by Asia Brewery Inc., another Tan-owned company, the drinking water was coursed through the Tokyo metropolitan government.

A total of 700,000 bottles of distilled water were shipped for free by PAL to help calamity victims.

Last March 9 and 10, PAL also repatriated over 700 Filipinos and their families from Libya.                                          

PAL flies once a day from Narita (Tokyo) to Manila using the 370-seater Boeing 777-300ER aircraft, and five times a week from Narita to Cebu using the 302-seater Airbus A330-300.

Friday, April 15, 2011

Cebu Pacific, PAL question draft implementing rules of EO 29

By Mary Ann LL. Reyes
(The Philippine Star)
Updated April 15, 2011 12:00 AM

Manila, Philippines - The country’s two biggest air carriers questioned yesterday the draft implementing rules of Executive Order 29 adopting a pocket open skies policy in the Philippines for being vague and unrealistic.

Cebu Pacific (CEB), in particular, scored a provision that will set aside the requirement to grant reciprocal traffic rights to local carriers when national interest calls for it.

Philippine Airlines (PAL), for its part, criticized the non-inclusion of representatives from local carriers in the Philippine Air Panel that will negotiate air service agreements. The carriers shall as observers, prior to any negotiation submit their position/requirements relative to the bilateral partner.

PAL president Jaime Bautista in an interview with The STAR said he questioned Rule 2.7 which “reserves to the Air Panel the right to amend, alter, or revise any position taken, prior to the bilateral talks, if it deems to be more in keeping with national interest.”

President Aquino last month issued twin executive orders that will implement open skies in the Philippines, eventually allowing foreign airlines to serve selected local routes. EO 28 creates the Philippine Air Negotiating Panel (PANP) and the Philippine Air Consultation Panel (PACP), while EO 29 authorizes the Civil Aeronautics Board (CAB) and the two panels to explore discussions with foreign carriers regarding the aviation liberalization policy commonly known as “open skies.”

Bautista stressed that he does not see the point of all these considering that there are many available entitlements, but not takers.

Meanwhile, CEB president Lance Gokongwei told The STAR that the provisions of Rule IV under the draft IRR EO 29 (transformation of operating rights into traffic rights) tend to contradict each other.

Rule 4.1 of the draft IRR provides that the Philippine Air Panels and the Civil Aeronautics Board (CAB) shall hold talks with the respective states of registry of the carriers operating under EO 29 for the conversion of operating rights into traffic rights. This, the rule said, shall include the inclusion of reciprocal grant to Philippine carriers of equivalent traffic rights by the said states.

Rule 4.2, meanwhile, provides that the CAB, in case of failure to reach mutual agreement to grant reciprocal rights to Philippine carriers within 12 months from the grant mentioned in the preceding rules, may revoke the conversion of operating rights into traffic rights.

Gokongwei said government has to explain why it had to include in the draft IRR Rules 4.3 and 4.4 which contradict the reciprocity rule provided in Rules 4.1 and 4.2

According to Rule 4.3, notwithstanding the non-inclusion of traffic rights mentioned in Rule 4.1 in the relevant air service agreement (ASA), the CAB may continue to allow operation of traffic rights under EO 29 if it deems it to promote national interest and/or mutual benefits.

Rule 4.4, on the other hand, says the CAB reserves the right to revoke, suspend, or restrict operations granted in the event the state of registry of the foreign carrier operating under this grant failed to extend reciprocal rights and/or equal opportunity to Philippine carriers.

CEB has been asking government to include in the IRR of EO 28 and 29 provisions that will ensure that reciprocal traffic rights are granted to domestic carriers.

The ASA, or bilaterals, governs the civil aviation relationship between states that are parties to it. Traffic rights, meanwhile, is a market access right which specifies who or what may be transported over an authorized route or parts thereof in the aircraft.

A foreign air carrier’s permit (FACP) is a permit issued by the CAB and approved by the President which authorizes a foreign carrier to engage in foreign air transportation. A temporary operating permit (TOP), on the one hand, is the authorization issued by the CAB for a fixed term for the operation of scheduled or non-scheduled services by an air carrier pending the issuance of a FACP.

An FACP or TOP is a condition before any foreign carrier is granted operating rights under EO 29.

EO 29 seeks to further liberalize civil aviation in the Philippines, specifically to airports other that the Ninoy Aquino International Airport (NAIA) and “to promote a more liberalized policy for the expansion of direct air services, both passenger and cargo to secondary gateways outside of Metro Manila in order to advance domestic tourism…”

It provides that the Philippine Air Panel may offer third, fourth or fifth freedom traffic rights without restrictions on frequency, capacity and type of aircraft and other arrangements in the consideration of national interest as may be determined by the CAB.

The third freedom gives the right to fly from one’s own country to another while the fourth freedom covers the right to fly from another country to one’s own. The fifth freedom is the right to carry passengers from one’s own country to a second country, and from that country to a third country.

However, the same EO prohibits CAB from granting any foreign air carriers cabotage traffic rights of any kind, such as the right to transport passengers and goods between two or more points within the Philippines.

In both EO 29 and 28, designated national carriers have been relegated to mere observers instead of members of the Philippine Air Panel. The draft EO 29 IRR said that prior to any negotiation with other states by the Panel, the carriers shall submit their respective requirements and/or positions relative to the bilateral partner.

Gokongwei said that they have no problem with being mere observers since this is a practice also being observed by other countries.

Monday, April 11, 2011

PAL union set to defy Baldoz’s no-strike order

by Eric B. Apolonio
Manila Standard Today
April 11, 2011

THE Philippine Airlines Employees Association is going to use social networking sites such as Facebook to organize protests and strikes, group president Gerry Rivera said over the weekend.

“We plan to test the law and defy the assumption and certification order of the Labor secretary which has been abused to deny workers their means of defense,” Rivera said.

“We will be maximizing Facebook and social media in organizing the strike and other protests just as the people of Egypt and Tunisia did.”

The union is protesting the airline’s plan, approved by MalacaƱang, to lay off its ground workers and outsource its ground services.

The union says 2,600 ground workers will be cut as a result of it, but the airline says they will receive a generous severance pay and get hired by the outsourcing companies it will tap.

So far, the union has used Facebook to mobilize its members and gather public support.

“Since a majority of [the union’s] members are on Facebook, it is easy to connect with them,” Rivera said.

“We have tried it and it is effective. The Labor Secretary can abuse her power to suppress the right to strike, but the government cannot afford to shut down the Internet.”

Rivera said the union had asked the Office of the President to reconsider its decision to allow Philippine Airlines to proceed with its planned outsourcing.

He said labor groups, the airline’s flight crew, and even the Catholic Bishops Conference of the Philippines were supporting the union’s plan to strike over the outsourcing plan.

Philippine Airlines, meanwhile, has assured its passengers it is ready for any work stoppage.

PAL unions must recognize market reality

The Philippine Star
April 11, 2011
DEMAND AND SUPPLY By Boo Chanco

I don’t know if the PAL rank and file union will strike this Holy Week to cause maximum headache to management even if it will guarantee maximum inconvenience to passengers out for a Holy Week break. Those of us whose holiday excursions involve a flight with PAL should probably have a Plan “B” just in case. I asked the Cebu Pacific people if they will honor a PAL ticket in such an emergency and they said they will be happy to do that but PAL must ask first. They have apparently offered in the past and got no reply from PAL. They are also almost fully booked by now for Holy Week.

Our poor flag carrier, Asia’s first, had been getting it pretty bad from their unions in recent weeks. They should all be working together instead. Everyone in PAL should realize that they are no longer the country’s number one airline, at least not in terms of number of passengers flown last year. They are now just number two and that’s why they must try even harder to please. Cebu Pacific is now the country’s largest carrier. Based on government statistics, Cebu Pacific last year flew 10,036,503 local and international passengers to PAL’s 9,259,982. In the domestic market, Cebu Pacific leads with 7,972,659 passengers to PAL’s 5,311,168. PAL still leads Cebu Pacific in the international market.

And guess what? Cebu Pacific flew more passengers with less staff. Cebu Pacific has 4,000 people working for it, about half of that are outsourced. The 2,000 staff members outsourced by Cebu Pacific are holding the same positions that PAL wants to outsource. There is just no way for PAL to continue to have 7,000 employees on its payroll. Aviation market conditions have changed so much and the older airlines, not just PAL, must do something about their so-called legacy costs or just simply lose out to more nimble competitors like Cebu Pacific.

The conditions just got tougher with our unilateral Open Skies declaration. There will be more regional budget airlines taking to our skies and it is important that PAL’s cost structure becomes more comparable to theirs. My Singapore-based son was able to fly to Manila on a whim one weekend on a roundtrip ticket costing him $150 on Tiger Air. I know PAL is trying to match such cut-throat competitors with $250 tickets but its ability to do so on a sustained basis is questionable unless it revamps its cost structure.

In the end, PAL must be financially viable for all its employees to continue to have jobs. If they are able to restructure PAL’s cost, a good part of the present employee force will continue to have jobs in the airline. But if they strike and PAL folds up, everything and everyone goes down the drain. Cebu Pacific, on the other hand, has already invested a billion dollars and planning to invest more.

Business organizations evolve and change in response to market conditions. That’s all there is to it. PAL’s present structure may have worked in the past when it was a monopoly. That is no longer the case. And there is no national interest that can justify a government takeover to save PAL. It is survival of the fittest in the marketplace and PAL is too financially unfit to survive the challenge of Cebu Pacific, Tiger Air, Air Asia and all those new budget carriers whose price structures we love as consumers. The PAL unions must help win this competitive challenge not by striking but by agreeing to restructure the airline.

Coloma

I received a reaction from Secretary Sonny Coloma to our column last week on the CommGroup. Here are relevant excerpts of his e-mail.

It is sad that you would claim that “(I) have no experience in public relations,” considering that we have known each other since the early seventies.  We were colleagues in the International Association of Business Communicators (IABC) when you were working with PNOC and I was employed by Far East Bank and Trust Company.

The field of public relations spans several publics: an organization’s clients or customers, its own employees, government, mass media, and other stakeholders.  I served as vice president and head of Far East Bank’s corporate relations department and also of its employee relations (including employee communication) department during my ten-year stint with the bank.

When I joined the Asian Institute of Management (AIM) as a professor in 1988, I introduced an elective entitled Corporate Public Communication, which is all about public relations. In fact, you were my preferred resource person on the topic of issues management.  Other PR professionals can attest to the fact that I have designed and delivered a practitioner-oriented course on public relations in keeping with AIM’s academic standards.

My response: It is true that we organized the Philippine chapter of IABC in the early 80s. It is also true that I knew about Sonny’s PR course at AIM. In fact, I think I was his guest lecturer a couple of times. I thought of mentioning both items when I was writing my column but later on decided both facts were irrelevant. The point I was trying to make was the fact that Sonny didn’t have the kind of PR experience required of his current job. Issue management and Crisis Management are two of the more relevant skills needed at the Palace that can only be had by actual experience.

 And while Sonny can say he is familiar with PR concepts from an academic perspective… that is not nearly enough. This lack of experience would have been mitigated if he had actual media experience. That would have enabled him to think like a reporter or an editor and thus be able to serve media’s information needs better as well as tweak his material to better catch media attention.

 I have always been impressed with the fact that your columns are research-based. However, you might have been misinformed because, not a single centavo of appropriation

 is provided in the national budget for Channels 4, 9, and 13.  The charter or law that created the People’s Television Network, Inc. (PTNI) does not allow Channel 4 to receive an annual appropriation from the national government. Channels 9 and 3 are also sequestered entities that are not entitled to budgetary support from the government.

The Presidential Communications Operations Office (PCOO) that I head has a total budget of 976 million pesos for 2011 which is lower than the 2010 outlay of 1.16 billion pesos.  Only about half of this amount is allotted for mass media: 293 million for the Bureau of Broadcast Services and 250 million for the Philippine Information Agency that has a field network of regional and provincial offices.  When our budget for 2012 is presented anew to both houses of Congress, I am mindful that I will have to justify all items of expenses for personal services, maintenance and other operating expenses, as well as for capital outlays. This is in accordance with President Aquino’s policy on zero-based budgeting, to ensure that every centavo of the taxpayers’ money is properly spent.

My response: That’s more resources than most PR professionals get to spread their good news. The budget aside, Channel 4 could have more impact if used to provide what we cannot expect from the commercial networks. Maybe you can work out a deal with Armida Siguion Reyna to show her well produced cultural show Aawitan Kita. Or show some of the cultural features in the tourism channel. Our current generation of Pinoys must be exposed to our rich cultural heritage. Or maybe, Channel 4 can air curriculum based educational programs during school days. Knowledge Channel is doing it now but only reaches those schools with cable or satellite connections. The thing is, make Channel 4 useful. Trying to imitate what the networks are already doing in news and entertainment is a waste of resources.

(Note: Sonny also responded to my suggestions on social media. I need space to tackle those in a future column).

Paris in spring

Rosan Cruz, now in Paris to run the Paris Marathon, sent this one.

A thief stole some paintings from the Louvre. Captured a block away when his van run out of gas, he told police he stole the paintings because he had no Monet to buy Degas, to make the Van Gogh. He had De Gaulle to do it because he had nothing TOULOUSE.

I hope Rosan finished her marathon with no injuries yesterday.

Wednesday, April 6, 2011

Biz Buzz: PSE election fever

Philippine Daily Inquirer
First Posted 21:09:00 04/05/2011
By Daxim L. Lucas

Outsourcing, anyone?

A TORCH rally by some 500 Philippine Airlines ground workers and their militant supporters caused bedlam near the Ninoy Aquino International Airport (Naia) last Friday. With traffic hardly moving along the stretch of Tramo, MIA and Sucat roads, many airport-bound commuters (presumably passengers of PAL and other international airlines going to the adjacent Naia 1) were seen on foot in a desperate attempt to catch their respective flights.

Many seemed to be foreign tourists and businessmen—trolleys in tow—heading toward the two terminals on foot. PAL deployed buses to pick up passengers, but the tourists’ unpleasant experience was no doubt another disincentive for luring them back to the country, open skies notwithstanding.

That thousands of passengers and ordinary commuters can be held hostage by a small band of protesters is another wake-up call for authorities. (Why was the mass action allowed near the airport in the first place?)

Protesting workers of PAL got little sympathy from those made miserable by the anxiety of missing their flights or being late for appointments.

The supreme irony of it was that many of those at the protest rally against the flag carrier were not even PAL employees, but militants from groups like Partido Manggagawa, among others. A case of “outsourcing” rallies?—Daxim L. Lucas

Slowdown, delays hit PAL flights

Manila Standard Today
April 6, 2011

A SLOWDOWN by Philippine Airlines’ ground workers throttled its operations Tuesday, causing 14 flights to be delayed and one to be canceled.

At Terminal 2 in Manila, the flights to Ho Chi Minh, Hong Kong, Bangkok, Shanghai, Singapore and Taipei were delayed for an average of 30 minutes, the flight operations divisions said.

The PR511 flight to Singapore was canceled due to a problem with the aircraft. The passengers on the return flight were transferred to another plane to Manila.

A number of domestic flights to Bacolod, Cebu, Davao, Cagayan de Oro were also delayed for an average of 30 minutes as they awaited air traffic control clearance.

The carrier’s ground workers are disputing its decision to outsource some of its services, saying that would result in the layoff of thousands of them. They also claim that the airline has been refusing to bargain.

The airline says it needs to outsource those services to stay in business, adding the workers to be laid off will receive generous separation packages and be rehired by the outsourcing companies. It disagrees that it has been refusing to bargain.

The airline on Tuesday assured its passengers it was ready for the worst, and that it had contingency plans to minimize flight disruptions in case its ground workers walked out.

“Many PAL administrative employees, and even union members themselves, believe that a strike will not do the company any good. As such, they are ready to man posts to be vacated by protesting workers,” airline president Jaime Bautista said.

“We apologize to our passengers for whatever anxiety and inconvenience the threats of work stoppage have spawned. Rest assured we are doing everything we can to ensure that your flights will proceed as scheduled.”

Bautista said the planned strike had no legal basis.

“First, it’s not true that management refuses to convene negotiations for a new collective bargaining agreement as claimed by the PAL Employees Association,” he said.

“Second, the union’s claim that there is no justifiable reasons for the spin-off of three units—airport services, in-flight catering and call center reservations—likewise has no leg to stand on.”

Monday, April 4, 2011

PAL union retreats from holding strike

Manila Standard Today
Monday, April 4, 2011   
by Vito Barcelo

PHILIPPINE Airlines’ ground workers retreated from their threatened strike on Saturday after the Labor Department intervened and referred their dispute with the management to the National Labor Relations Commission for compulsory arbitration.

The Philippine Airlines Employees Union had threatened to strike over what it claims as management’s refusal to bargain collectively, and after the strike ban prescribed by law ended Friday.

The Labor Department-sponsored series of conciliation talks between the two sides failed to produce results, and on Friday the union said it was ready to strike the following day after the strike ban lapsed.

Union president Gerry Rivera described the department’s order stopping them from striking as a “bad April Fool’s prank.”

“We will go back to the drawing board and plan our next legal move,” he said.

“We will strike without any announcement, that’s for sure. We will not conduct any work slowdown. It will be a big surprise.”

Airline president Jaime Bautista said “PAL will follow the order, but any illegal action of the PAL Employees Association to disrupt airline operations will not be treated lightly.”

The union is protesting against the impending dismissal of 2,600 workers as a result of management’s decision to outsource some of its businesses to third parties.

“We are ready to defy the order of Labor Secretary [Rosalinda] Baldoz any time we deem it necessary to go on strike in order to prevent layoffs and contractualization at PAL,” Rivera said.

He criticized the Labor Department’s referral of the labor dispute to the Labor Relations Commission, saying the union received the order after some 2,000 members and supporters rallied at the airport.

The carrier, meanwhile, assured its passengers that its operations remained normal, and that no flights had been canceled.

“Strikes do not happen overnight,” spokeswoman Cielo Villaluna said.

“The PAL management will take all legal remedies to prevent such from happening.”

PAL sets contingency measures in case of actual work stoppage

Manila Bulletin
By EDU LOPEZ
April 4, 2011, 6:53pm

MANILA, Philippines – Philippine Airlines (PAL) has assured its passengers that the national flag carrier is ready for a "worst case scenario" of an actual work stoppage.

In a statement, PAL said it is ready to implement contingency measures to minimize flight disruptions and avoid passenger inconvenience in case a threatened walkout by its ground workers pushes through.

“Many PAL administrative employees, and even union members themselves, believe that a strike will not do the company any good. As such, they are ready to man posts to be vacated by protesting workers,” PAL president and COO Jaime J. Bautista said.

“We apologize to our passengers for whatever anxiety and inconvenience threats of work stoppage have spawned. Rest assured we are doing everything we can to ensure that your flights will proceed as scheduled,” he added.

Bautista said PAL continues to appeal to its workers to respect and remain within the legal conciliation process. “But make no mistake, PAL is also ready to exercise its legal options in case any work stoppage is declared illegal by proper authorities,” he stressed.

Bautista explained that the planned strike has no legal basis. “First, it’s not true that management refuses to convene negotiations for a new Collective Bargaining Agreement as claimed by the PAL Employees Association (PALEA). Second, the union’s claim that there are no justifiable reasons for the spin-off of three units – Airport Services, In-flight Catering and Call Center Reservations – likewise have no leg to stand on,” he stressed.

PAL submitted its counter proposal to the collective bargaining agreement last March 28 at the National Conciliation and Mediation Board (NCMB).

“This is the best proof that PAL is willing to negotiate with its union. Meanwhile, the planned spin-off which was recently upheld by the Office of the President, is not the subject of any notice of strike as this has just been recently resolved by Executive Secretary Pacquito Ochoa,” he added.

PAL’s spin-off plan was thrice upheld as legal and valid by the labor secretaries of the past and present administrations.

Last March 25, the Office of the President likewise upheld PAL’s right to spin off its three units to third party service providers.

PAL sets contingency measures in case of actual work stoppage

Manila Bulletin
April 4, 2011, 6:53pm
By EDU LOPEZ

MANILA, Philippines – Philippine Airlines (PAL) has assured its passengers that the national flag carrier is ready for a "worst case scenario" of an actual work stoppage.

In a statement, PAL said it is ready to implement contingency measures to minimize flight disruptions and avoid passenger inconvenience in case a threatened walkout by its ground workers pushes through.

“Many PAL administrative employees, and even union members themselves, believe that a strike will not do the company any good. As such, they are ready to man posts to be vacated by protesting workers,” PAL president and COO Jaime J. Bautista said.

“We apologize to our passengers for whatever anxiety and inconvenience threats of work stoppage have spawned. Rest assured we are doing everything we can to ensure that your flights will proceed as scheduled,” he added.

Bautista said PAL continues to appeal to its workers to respect and remain within the legal conciliation process. “But make no mistake, PAL is also ready to exercise its legal options in case any work stoppage is declared illegal by proper authorities,” he stressed.

Bautista explained that the planned strike has no legal basis. “First, it’s not true that management refuses to convene negotiations for a new Collective Bargaining Agreement as claimed by the PAL Employees Association (PALEA). Second, the union’s claim that there are no justifiable reasons for the spin-off of three units – Airport Services, In-flight Catering and Call Center Reservations – likewise have no leg to stand on,” he stressed.

PAL submitted its counter proposal to the collective bargaining agreement last March 28 at the National Conciliation and Mediation Board (NCMB).
 
“This is the best proof that PAL is willing to negotiate with its union. Meanwhile, the planned spin-off which was recently upheld by the Office of the President, is not the subject of any notice of strike as this has just been recently resolved by Executive Secretary Pacquito Ochoa,” he added.

PAL’s spin-off plan was thrice upheld as legal and valid by the labor secretaries of the past and present administrations.

Last March 25, the Office of the President likewise upheld PAL’s right to spin off its three units to third party service providers.

PAL launches direct flights to New Delhi

Manila Bulletin
By ANJO PEREZ
April 4, 2011, 3:37pm

MANILA, Philippines – Philippine Airlines (PAL) now has direct flights to India with the launch of its Manila to New Delhi service last March 29. PAL’s return to India comes after 57 years of absence as the flag carrier used to make technical stops in Calcutta for its Manila-Europe flights.

The inaugural flight to New Delhi, PR 758, took off from the Ninoy Aquino International Airport (NAIA) at exactly 9:20 p.m. It took the Boeing 777-ER (extended range) wide-body jet just six and a half hours to cover the 4,775-kilometer route, with the flight arriving at the Indira Gandhi International Airport (IGIA) at 1:30 a.m., India time.

More than 200 passengers disembarked at Gate 1A of the IGIA with no less than PAL chairman, Lucio C. Tan, heading the delegation. Indian tourism officials as well as airline and other business executives were on hand to welcome the group.

PAL president and Chief Operating Officer, Jaime Bautista, said, “Indeed, today, PAL is flying to India that’s a destination in its own right. Your country has emerged in recent years as one of the world’s economic powerhouses, with GDP growth of close to 9 percent this financial year. India’s economy is now the third largest in Asia and 11th largest in the world.”

According to Bautista, India’s booming economy has resulted in the emergence of a high-spending middle class of more than 300 million consumers that is growing by 20 million annually. Bautista added that travel is a major aspiration of the middle class and that PAL aims to tap in to that growing market.

Bautista said eight million Indians traveled to international destinations in 2009. Two million headed to Southeast Asia with most of them traveling to Singapore, Thailand, Malaysia and Indonesia—with only 32,817 going to Manila. With the new flight services, PAL aims to increase Indian passenger traffic with PAL providing 188,000 airline seats annually.

To formally launch the service in New Delhi, PAL hosted a luncheon for the local media at the Taj Palace Hotel. Aside from the big number of the local press, also in attendance were PAL executives headed by EVP-Commercial Group, Vivienne K. Tan, Foreign Affairs Secretary Esteban Conejos, Civil Aviation Authority of the Philippines (CAAP) Director General Ramon Gutierrez, officials from the Department of Tourism and the Civil Aeronautics Board as well as selects guests from the Federation of Indian Chambers of Commerce and the Filipino-Chinese Chambers of Commerce and Industry.

PAL to abide by DOLE order

Philippine Star
Updated April 04, 2011 12:00 AM
By Rudy Santos

MANILA, Philippines - The management of Philippine Airlines (PAL) said yesterday it would respect a labor department order remanding its labor dispute case with employees to the National Labor Relations Commission (NLRC) for compulsory arbitration.

The PAL management said it is ready to implement contingency measures to prevent disruption of airline operations.

“PAL will follow the DOLE (Department of Labor and   Employment) order, but any illegal action of the PAL Employees Association (PALEA) to disrupt airline operations will not be treated lightly,” said PAL president and COO Jaime Bautista.

He said he was informed only on Friday night about the certification order issued by Labor Secretary Rosalinda Baldoz remanding the labor dispute case to the NLRC for compulsory arbitration.

Baustista said the airline management is yet to receive an official copy of the order.

Last Friday, PALEA held a pre-strike rally that disrupted traffic near the Ninoy Aquino International Airport (NAIA) Terminals 1 and 2. All scheduled flights, however, pushed through.

Bautista said management was prepared for a worst-case scenario, including the threat of work stoppage by PALEA at midnight of April 2, which did not happen.

“We are ready for any PALEA action because not only do we have contingency measures in place, we also have the commitment of many ground workers that they will not join the strike,” he said.

The union has filed a notice of strike on March 7 but may no longer carry it out because of the order issued by DOLE.

Bautista said PAL lawyers are studying the airline’s legal position when the case is heard by the NLRC.

PALEA president Gerry Rivera had said the union will defy the labor department order, even tearing a copy of it on national television.

“This gesture reveals PALEA’s true nature: that it will not accept or respect anything less than what it wants. I hope government would not allow itself to be held hostage by PALEA’s scare tactics,” Bautista said.

Baldoz said the airline management can file charges of illegal strike against the union if it defies the order.

“It’s their (PAL) decision if they (PALEA) would push through with the planned strike despite our order,” Baldoz said.

She said she certified the labor case to the NLRC to settle the dispute peacefully.

“What we want to provide is an orderly and peaceful way of settling and resolving the dispute so we could protect the riding public,” she said.

Rivera said the union has the right to hold a strike against the airline that he describes as having “the awesome powers of capital.”

“The order has not stopped a strike at PAL. It has merely postponed it to a date that PAL and the government cannot now know in advance,” he said.

The NLRC conducted a series of conciliation talks between the airline and the union but both sides failed to reach an agreement until last Friday, the last day of the strike ban period prescribed by law.

As this develops, Bautista assured passengers that the airline management will regularly issue updates through the media. Passengers may also be informed of any sudden changes in flight schedules. PAL’s reservation hotline may be contacted 24 hours at 855-8888.

They may also log on to www.philippineairlines.com for more information. - with Mayen Jaymalin

Sunday, April 3, 2011

Palace still hopes for PAL row mediation

BusinessMirror 
News
Sunday, 03 April 2011 20:32
by Mia Gonzalez, Estrella Torres

MALACAƑANG expressed hope on Sunday that Philippine Airlines management and employees can still iron out their differences through compulsory mediation so that their labor row would not have to be brought before the International Labor Organization (ILO) for resolution.

In an interview with state-run Radyo ng Bayan, Deputy Presidential Spokesman Abigail Valte said that while it is the right of the PAL Employees Association (Palea) to raise their case before the ILO, “our part, we hope that it will be resolved. Even if it has become apparent that the two groups are clashing on the issue, we are hoping for a good resolution.”

She also reiterated that PAL workers may face possible charges if they go on strike as their labor row with PAL management has been “submitted for compulsory mediation.”

Valte added, “They should avail themselves first of compulsory mediation from the National Conciliation and Mediation board....We are hoping that the compulsory mediation of the two groups would bear good results.”

She said that under the certification order released by Baldoz, any strike may be deemed illegal if the case involved has been submitted for compulsory mediation.

Palea members are set to hold a picket rally in front of the Department of Labor and Employment (DOLE) office in Manila on Monday to protest the issuance of a certification order stopping the workers’ strike that seeks to stop the dismissal of some 2,600 workers of the flag carrier.

Palea president Gerry Rivera said the holding of the strike was postponed over the weekend but will be continued with a picket at the DOLE office.

PAL workers were protesting the airlines’ move to outsource services occupied by some 2,600 regular workers and were planning to hold a strike to paralyze the airline operations. On the eve of the planned workers’ strike on Friday, Baldoz issued a certification order that referred the PAL dispute to the National Labor Relations Commission (NLRC).

“I have intervened and certified the dispute to the National Labor Relations Commission on the ground of national interest ,and particularly the riding public,” Baldoz said late Friday.

She said the National Conciliation and Mediation Board conducted a series of con-ciliation talks between PAL and Palea, but both sides failed to reach an agreement even until Friday, the last day of the strike ban period prescribed by law.

(Mia Gonzalez, Estrella Torres)