Local airlines eye further cuts, other measures to ride out pandemic, says air carriers group


Posted at Oct 13 2020 10:46 AM

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MANILA - Airlines in the country are eyeing further cuts and other measures to ride out the pandemic as revenues remain scarce, the Air Carriers Association of the Philippines said Tuesday. 

Leaving planes unutilized means no revenues to pay their staff and crew, ACAP vice chairperson and executive director Roberto Lim told Teleradyo. 

"Ang pangangailangan ng airlines, una diyan hindi sapat ang revenue na nag-ge-generate ng mga airlines kaya wala na silang pagkukunan ng cash pambayad sa kanilang organization," Lim said.

(What the airlines need, first they don't have enough revenue generated so they don't have a source of cash to pay for their organization)

"Yung program na pagpapaliit ng mga airlines, yun talaga mangyayari kasi kung hindi ka makagenerate ng revenue, hindi ka makalipad domestically," he added.

(The program to shrink organization, that's what's going to happen since they cannot generate revenue, they can't fly domestically)

AirAsia, Cebu Pacific and Philippine Airlines have all cut their workforce in varying degrees due to the pandemic, Lim said, adding that PAL was planning to cut more before the end of 2020.

"Ang plano ng mga airlines ngayon siyempre kailangan nila magbawas. Ang latest diyan sabi ng PAL may plano sila magbawas pa ng mga 30 percent before end of the year)

(Airlines plan to cut, PAL said they plan to remove I think 30 percent before the end of the year)

Lim said the Bayanihan to Recover as One law has a provision to augment the transport sector. However, airline companies need more measures such as emergency loans and government credit guarantee to survive the crisis.

Local governments are also encouraged to loosen restrictions and allow entry of more travellers to help the aviation sector. Lim said the use of antigen testing instead of RT-PCR could help bring back passengers.