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Airlines, Industry, Paolo Abellanosa

PAL to lay-off 2,600 employees

The country’s legacy airline shall be pushing through with its initial plan of outsourcing services such as catering and telesales operations in a survival strategy attempt to save US$ 10 to 15 million annually, affecting 2,600 employees, who, management says, will be transferred to third-party companies.

PAL'S LABOR DIET. Members of the PAL Employee Association protests against the contractualization of airline services. Photo courtesy of

The global crisis of 2008 took its toll on the airline with US$ 301 million loss recorded in the year. In 2005, it claimed a workforce of 7,322.

PAL plans to execute the restructuring by October 1. The Department of Labor and Employment (DoLE) gave its consent to PAL in 2010.

The employees’ association raised issues on the legal complications of the contractors to where PAL shall be outsourcing services from. These companies are Sky Kitchen Philippines Inc., Sky Logistics Philippines Inc., and SPi Global Holdings Inc.

According to, DoLE said that these companies are not accredited, but also informed the public that they can go through the process before operations start the coming month.


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The official newsletter of the UP Asian Institute of Tourism.


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