Local airlines gearing for new take-off

Our local airlines may be feeling like dragonflies these days, small and helpless, nothing but specks in an eerily empty infinite sky filled with uncertainty, what with the troubles brought about by COVID-19 which has halted global air travel for months now.

But dragonflies, small as they are, are supremely versatile and skillful at maneuvers. They possess great stability, can glide and hover and face headwinds with ease. They can fly extremely fast, and even fly backwards. They are some of the fastest flying insects in the world, reaching speeds of over 30 miles per hour, ripping through the wind with their iridescent wings of varied colors — blue, green, red and what have you.

As a spirit animal, in fact, dragonflies symbolize transformation and adaptability, and they may as well be the perfect metaphor for our airlines’ arduous, but certainly surmountable journey these days.

Philippine Airlines

Taipan Lucio Tan’s Philippine Airlines has already issued pink slips, jumpstarting its plan to reduce by 35 percent its 7,000-strong manpower, as I said in a story I broke in September.

That would be equivalent to 2,450 people, at least.

I heard, for instance, that the flag carrier needed to trim its manpower of A330 and A350 captains by 22. Most have availed of voluntary separation packages, but would consider flying again when demand returns.

Nobody is indispensible, but one PAL captain was all too relieved not to get the pink slip.

“Flying has always been my childhood dream and I find great satisfaction in my profession,” he said.

On a recent government-chartered PAL repatriation flight to Beirut, I had the pleasure of chatting with a flight attendant.

I asked him if he wasn’t afraid to fly given the pandemic. He said it was an honor for him to join the historic mission.

Besides, he said, he does not know for sure when he can fly again in the future. Every flight may be his last.

When I asked why, he said with a tinge of sadness in his voice, that it’s because of the retrenchment cloud hanging over his company. None of them really know who will be given the pink slip, he said.

Despite their uncertain future, the flight attendant I met and his colleagues served all passengers with PAL’s trademark warm service. You wouldn’t even guess they were actually bracing for dark days ahead.

The retrenchment program isn’t over and it will be carried out within the fourth quarter. PAL assured employees that measures would be carried out in a fair manner that complies with all legal requirements and with support for outplacement assistance.

PAL, headed by its president Gilbert Santa Maria, is doing what it can to survive the crisis.

It remains an active force in the country’s aviation industry even as it needs to reduce its manpower.

For instance, it has operated approximately 1,000 cargo flights, mounted 300 repatriation flights for overseas Filipinos and locally stranded individuals, and continues to actively support the government’s thrust to gradually reopen domestic tourism.

The retrenchment is obviously a bitter pill that PAL must swallow to survive.

For now, employees and their families are all hoping for the best, but are expecting the worse. Nobody wants to get the pink slip, but they know that the retrenchment is necessary and inevitable.

Cebu Pacific

Over at Gokongwei-owned Cebu Pacific, the uncertainty is also tangible, but its president and CEO Lance Gokongwei had mentioned during one of our chats about retrenchment that, as soon as demand picks up and the situation normalizes, those who have been let go would be at the top of the list when the airline beefs up its manpower again.

Fund raising

The budget carrier is raising up to $500 million in additional capital to strengthen its balance sheet and ensure that it is well-positioned to recover from the impact of COVID-19.

Cebu Pacific will issue up to $250 million in new convertible preferred shares and another $250 million in privately placed convertible bonds.

The new convertible preferred shares will be made available to all stockholders, including JG Summit, giving opportunity for all investors to participate; while the privately placed convertible bonds will be made available to a limited number of reputable international investors.

“We need to create a longer runway for Cebu Pacific so that we can continue providing affordable and accessible air transport services for everyjuan,” Lance said.

Cebu Pacific is raising this capital to further strengthen its financial position in the midst of this COVID-19 crisis.

“We strongly believe in the airline’s vital mission of providing fundamental and value-for-money air travel in and out our country, and its crucial role as a driver for economic growth,” Lance added.

Turbulence

For now, it may be difficult for our local airlines to see beyond the turbulence, but with the cash they raise, cost-reduction measures they will implement and hopefully with the help of our government, I’m sure our local carriers will be able to spread their wings again someday soon.

They can certainly be the dragonflies of our economy agile, active and always adapting.

Iris Gonzales’ email address is [email protected]. Follow her on Twitter @eyesgonzales. Column archives at eyesgonzales.com