Aviation ground handling service provider to lay off over 1,000 employees due to pandemic
More than 1,000 employees of Cebu Pacific’s ground handling service provider will be laid off as the aviation sector struggles from the impact of the coronavirus pandemic.
1Aviation Groundhandling Services Corp. (1AV) said this week the company is letting go of 25 percent of their nearly 5,000 employees. The last day for affected workers will be on July 20.
“Even as passenger air travel has resumed with the easing of quarantine and travel restrictions in the country, current operations of Philippine carriers is a far cry from where it was as of end-2019,” 1AV said in a statement.
“Most forecasts show that it will take about two years before the aviation industry recovers from the impact of the COVID-19 pandemic. Given this situation, it is clear that the company still needs to take more drastic measures to ensure its survival,” it added.
The company pointed out that it expanded its manpower prior to the coronavirus pandemic due to a “bullish outlook for the Philippine aviation industry, increasing demand and innovations in customer service.”
But the spread of the COVID-19 disease across the globe stunted the expected growth for the aviation sector, with airlines forced to cancel thousands of flights and countries imposing more restrictions at their borders.
According to a CNN report that quoted consultancy CAPA Centre for Aviation in March, most airlines around the world may face bankruptcy by May, in what it calls “the worst aviation crisis in history.”
“The decline in demand for air travel and resulting drop in the number of routes and frequencies has directly impacted 1AV, since our core business is ground service support for the aviation industry,” 1AV said in a statement.
“To cope with the situation, we implemented cost-mitigation measures which include a freeze on hiring, key projects and capital expenditure; restricting overtime and deferment of salary increases. However, less demand for travel and fewer flights mean reduced need for ground support services,” it added.
The company assured affected employees that they would be “treated fairly and respectfully,” promising packages that are above what the law requires. It added that employees who are let go in July will be prioritized for hiring once the situation stabilizes and business picks up again.— Source: cnnphilippines.com