Long-suffering Philippine Airlines (PAL) is again under fire from its biggest union over fears that the carrier will cut thousands of jobs.

The PAL Employees Association (PALEA) is calling on the Philippine Securities and Exchange Commission (SEC) to withdraw its support for the national carrier's rehabilitation plan because it believes the programme will lead to the loss of more than 4,000 jobs.

Neither PAL nor PALEA is available for further comment on the development, which comes following last month's approval by the SEC of a rehabilitation plan covering PAL's long-term operation. It also comes as the carrier is in talks with Lufthansa Consulting on an operational consulting contract.

PAL has been in receivership since June 1998 under a debt of more than $2.2 billion, and its rehabilitation plan covers restructuring efforts which were last month approved by creditors representing 55% of the carrier's total debt.

Source: Flight Daily News