On Friday, February 28, the Philippines Airlines laid off around 300 of its ground-based staff and management team to help cope with the losses it faced because of the travel restrictions that are still in place in several countries.
The present move is to reduce costs and increase revenue. The company also said that "voluntary separation initiative for long-serving employees and a retrenchment process" have also been completed.
PAL is presently trying to offer compensation to the employees to overcome the situation. The parent company explained to the stock exchange that the losses have expanded largely over the year 2019 when compared to the previous year.
The situation in various other airlines
The outbreak has hit the airline industry around the world. The companies are scrambling to find a solution to the crisis situation. Not only have several companies reduced flights to several hotspots but they have also started to lay-off its workers.
Travellers continue to rethink their plans as several countries have issued a travel advisory. The numbers showing the travellers prove that the aviation industry is taking a big hit. Although domestically it doesn't seem to create an issue there has been a drastic number of cancellations and restrictions popping up across the globe because of Covid-19. Thousands of cancellation hasn't killed the hopes for local travel experts.
On Friday, United Airlines announced that they will be reducing its services to some of the countries following the outbreak. Several other aviation companies have started to reduce the travel to Asian countries, majorly the countries that have been affected by the coronavirus. The United Airlines will cancel flights to Tokyo's Narita International Airport from Los Angeles and from Houston in March. It is not just Japan, but Korea and Singapore.
International travellers alarmed at the lack of screening
Travellers are concerned that there isn't enough being done for the screening in the airports. Several are questioning the lack of screening in the JFK airport. Several are avoiding travel altogether. Travel insurance companies are not providing for the losses inflicted by the new coronavirus. The companies only accept insurance if it was taken before January 22, which is the day the World Health Organisation declared emergency.
Some airlines like Alaska Airlines will not charge on change and cancellation for the next two weeks following the rising concern across the globe. IAG, the British airways owner predicts that the revenue will be hit in the coming months. Airline companies in collaboration with the government in several countries have rushed to bring back the citizens of their countries from Wuhan and other places.