Phillipine Airlines announced that it will be reducing the number of selected domestic and international flights for a limited period as the flag carrier prepares for the transfer of its catering, ground handling and call center reservations units to third party service providers on October 1, 2011.
It has disclosed that the number of domestic flights would be temporarily reduced by about 30 percent while international flights would be cut provisionally by 12 percent. The international destinations to be affected by the flight frequency reduction are Hong Kong, Bangkok, New Delhi, Macau, Singapore, Los Angeles, Vancouver, Guam, Sydney, Melbourne and Incheon (from Cebu).
The airline plans to refund the money for people travelling on the affected flights by setting up special counters in Manila or through the respective Travel Agents. In my opinion this move is not going to go down well with the affected people, given that the airline is losing its market share to the Low Cost Carriers like Cebu Pacific and Qantas subsidiary Jetstar and to other full service rivals like Singapore Airlines, such moves will trigger further exodus of passengers.
No doubt that the outsourcing will help the troubled carrier cut down on costs but better planning and mangement for such a move would have really helped. The press release by the airline can be found here.