Cebu Pacific's ground handling unit is slashing more than 1,000 jobs

1Aviation Groundhandling Services Corp., Cebu Pacific's provider for ground handling services, is letting go of 25% or more than 1,000 of its total employees amid the covid-19 pandemic.

The company said, "With a heavy heart, we are left with no other recourse but to let go of 25% of our total workforce." 1Aviation has been struggling to survive as commercial flights of Cebu Pacific were suspended for more than 2 months.

1Aviation employs a total of 5,000 employees which provides ground service support for the airline.

Second wave of lay-offs

Last April, 1Aviation laid-off around 400 non-regular or probationary employees as the air travel demand has plummeted and airlines were suspending flights. This came after Cebu Pacific itself laid-off around 150 non-regular flight attendants as a response to the pandemic.

“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 said.

The company ensures that all affected employees will be given separation packages above what the law requires. The affected employees are also assured that they will be given priority should they wish to return to the company once business picks up once again.

A far cry from pre-pandemic air travel demand

Despite LGUs and countries slowly easing their restrictions, travel demand at present is totally far from what it was before the coronavirus pandemic affected everything. This has forced many airlines to downsize for survivability by managing and cutting costs.

Airlines will need to downsize as not doing so will cause an over capacity which may lead to bigger financial losses. 

The airlines forecast that it may take even beyond three years for travel demand to return to pre-covid levels even if a vaccine is already available in the market.