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7 factors that affected Philippine Airlines

And why it\\\'s turned to outsourcing jobs
By |

The country’s flag carrier, Philippine Airlines is one of the first airline companies in Asia. Yes, even before Cathay Pacific and Singapore Airlines came into the picture, Philippine Airlines was already airborne. But what happened that the airline is now forced to outsource jobs, in its bid to maintain operations and cut costs?

Based on the official statement of the airline, the company was earning only a modest profit for the second quarter of the year, after a series of losses in the previous years.

What severely affected the airline, based on their press release, are the following:

1.    Weak demand as a result of lingering world economic condition

2.    High fuel prices

3.    Effects of the devastating natural calamity in Japan

4.    Economic effects of social/political unrest in the Middle East and North Africa


5.    Effects of the US Federal Aviation Authority Category 2 downgrading of the country\\\'s civil aviation regulators which limits the airline\\\'s operations to and from the United States

6.    European Union blacklist on all Philippine carriers from flying anywhere in Europe

7.    Cut throat competition due to budget carriers and state-sponsored open skies policy



PAL says that, "it must adapt to new realities to remain competitive. After all, its continued operations ensure that separated workers would still have jobs, albeit with a new company. "

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