Manila air traffic hit by perfect storm
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Air traffic at Manila airport ground a halt yesterday as, Philippine Airlines (PAL) was hit by the perfect storm of industrial action and the strongest typhoon to hit the country this year.
PAL cancelled all flights in and out of Manila’s Ninoy Aquino International Airport (NAIA) Terminal 2 for nine hours yesterday. The national carrier was forced to shut down operations after the PAL Employees Association (PALEA) staged a wildcat strike to protest against the outsourcing of three subsidiary units.
Meanwhile, dozens of domestic flights in and out of the Philippine capital were cancelled as Typoon Nesat brought torrential rain, strong winds and blackouts to Luzon Island. The storm, which is thought to be the strongest the country has faced this year, flooded swathes of the Philippine capital. The Manila Bay area was the worth affected, and the Sofitel Philippine Plaza Hotel was forced to evacuated staff and guests.
PAL management took the decision to halt flights at 9am yesterday morning, cancelling almost all inbound and outbound flights until 6pm, due to the industrial action. The national carrier condemned the “illegal work stoppage”, which led to cancellation of 172 inbound and outbound flights (102 international and 70 domestic) from PAL’s hub at NAIA Terminal 2. An estimated 14,000 PAL passengers were left stranded at the airport. PAL was able to receive two flights during yesterday’s strike; inbound services arriving from Seoul and Tokyo, which were transferred to Terminal 1.
In a news conference yesterday afternoon, PAL’s President & Chief Operating Officer, Jaime Bautista said the may seek criminal sanctions against those responsible for the strike.
“Our lawyers are studying all legal options, including the filing of administrative, civil and criminal charges against the illegal strikers. They are risking their retirement pay and other benefits because of their illegal actions,” Bautista said.
The affects of the strike were overshadowed however, by Typoon Nesat, which is now known to have caused the deaths of 16 people on Luzon Island. According to reports, four of the dead were killed when a building collapsed in Manila. In addition, almost two million households in Manila suffered power cuts.
The double impact of the industrial action and typhoon will compound the ongoing problems faced by PAL. The airline’s management claims that the controversial outsourcing of three units is essential to its survival. PAL posted two consecutive full-year losses in 2008 and 2009, totalling US$312 million. While it posted profits of US$72.5 million in 2010, it fell back into the red in the April-June 2011 quarter, registering a US$10.6 million loss.
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