On Thursday, 1Aviation Groundhandling Services Corp said the move was part of “drastic measures. It aims to ensure its survival” as the pandemic continued to pummel the industry of air travel.
The COVID-19 pandemic has forced Cebu Pacific’s ground handling company to lay more than 1,000 employees. Or, a quarter of its workforce is into the single-largest downturn in the local aviation industry due to the health crisis.
Last Day on July 20
“We are left with no other recourse. But, to let go of 25 percent of our total workforce with a heavy heart,” the company said in a statement. The last day for the workers will be July 20.
In April, after the Luzon lockdown, 1Aviation laid off 400 newly hired workers including gate check-in and boarding agents and baggage handlers.
Other local carriers also cut jobs in the midst of the pandemic to conserve cash.
Last February, Philippine Airlines (PAL) laid off 300 ground staff while last March Cebu Pacific retrenched nearly 190 staff. AirAsia Philippines said by the end of June it would lay off about 260 staff including cabin crew.
Aviation ground handling, which includes baggage sorting and aircraft towing services, is a key sector in the airline industry.
Cebu Pacific is the biggest customer. And also, it is the part-owner of 1Aviation. The Philippine Airport Ground Support Solutions Inc. businessman Jefferson Cheng controls it.
Reduction in Flights
The layoffs followed a dramatic reduction in the number of flights. It happened because COVID-19 cases across the world continued to grow due to poor demand. And also, tight government restrictions on air travel.
The downturn will add to rising unemployment as the economy is going to go into recession.
On June 5, the Philippine Statistics Authority announced a record 17.7 percent unemployment rate at April’s lockdown height with 7.3 million Filipinos unemployed.
1Aviation said all the workers who would be laid off “will receive fair and respectful treatment.”
“It will take care of the welfare of the affected employees as we always do, with packages that are above what the law requires,” the firm said.
