Philippine Airlines to spin off catering, ground handling, call centre units

Singapore
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Philippine Airlines (PAL) plans to hive its catering, ground handling and call centre reservation units off in a bid to reduce costs.

"The spin-off plan is a measure intended to stabilise PAL's finances due to the lingering effects of the global recession," said PAL spokesperson Cielo Villaluna.

PAL posted a net loss of $10.6 million (€7.3 million) for its fiscal first quarter, compared with a net profit of $31.6 million for the same period a year ago. PAL posted a net profit of $72.5 million for its fiscal year ended 31 March, up from a loss of $14.4 million a year ago.

The carrier said it will transfer these non-core units to third party service providers.

PAL has not identified a date as to when the spin-off will be implemented.