Philippine Airlines has taken decisive action to try and curb losses due to the travel bans caused by the novel coronavirus.
It is the latest airline in Asia to reduce the payroll, announcing 300 job cuts.
It implemented a ‘voluntary separation initiative’ for long serving employees.
"The streamlining will strengthen the company in the wake of losses sustained in 2019, aggravated by the ongoing travel restrictions and flight suspensions to areas affected by COVID-19," PAL said in a statement.
The affected administrative and management staff will get ‘appropriate separation benefits’ as well as protected travel benefits.
They will also get ‘assistance in the form of career counselling and outplacement support.’
As losses continue to mount, the restructuring will help ‘increase revenues and reduce costs’ PAL said.
"The airline will benefit from an ‘optimized route network and new ancillary products, more aggressive cost-management efforts, and investment in digital technology," it added.
PAL’s losses more than doubled in the third quarter of 2019.
