PAL to cut staff after loss

       National carrier Philippine Airlines said yesterday it would cut its workforce by offering early retirement as a cost-cutting measure after suffering more than $301 million in losses.
       "We want to make PAL lean and mean so it will be agile and flexible enough to adapt to the new economic climate,"company president Jaime J. Bautista said in a statement.
       The statement said the company would take "decisive steps" to restructure after last month reporting losses of $301.4 million for its fiscal year ended March 2009. It had net profit of $30.6 million in the previous year.
       The airline did not specify how many of its 8,000-plus employees would be offered early retirement.
       The company's revenue increased to $1.634 billion in the last fiscal year from $1.504 billion in the previous year due to a 17% increase in passengers, but it was overwhelmed by increased maintenance costs and record-high fuel prices that raised expenses to $1.9 billion. Fuel accounts for 44% of the airline's operating costs.
       Bautista said the cost cuts would not undermine airline safety and compliance with industry standards.
       He also said that the airline would continue to meet increasing passenger demand especially for the domestic market and is eyeing new charter or regular destinations.
       The airline will soon acquire new Boeing 777-300ER jets.