Layoffs begin at Tigerair amid takeover by Cebu Pacific means BUSINESS

MANILA - The operator of Cebu Pacific has begun reducing the workforce of Tigerair Philippines as part of the 2 airlines' consolidation. 

Cebu Air Inc (CEB) has started issuing notices of redundancy to most of the employees of Tigerair, except those in operations, a source from the company told

The source said 30 employees were let go in the first wave of the redundancy. 

Tigerair president Olive Ramos also filed her resignation effective end-July, the source added. 

Gokongwei-owned Cebu Pacific earlier acquired Tigerair, including the 40 percent stake of Tiger Airways owned by Roar Aviation II Pte Ltd.

The transaction was valued at $15 million and approved by shareholders of both companies, as well as of the Civil Aeronautics Board (CAB).

Records from the Securities and Exchange Commission (SEC) show that Southeast Asian Airlines Inc, which is the legal entity that carries the brand Tigerair, posted revenues of P2.88 billion last year, up 81.13 percent from P1.59 billion in the previous year. It however incurred a loss of P1.69 billion in 2013, higher by 5 percent from the P1.61 billion in 2012. 

Sought for comment, CEB spokesperson Jorenz Tanada said, "All I can confirm is that Mr. Michael Shau is taking over as president of Tigerair Philippines." 

Shau is vice president for ground operations at Cebu Pacific. 

Tanada however refused to provide more details, saying there's "no other update at this time" regarding on the termination of Tigerair employees. 

Beginning mid-March, the Philippine flights of Tigerair were made available on the Cebu Pacific website and through its other booking channels.

At end-2013, Cebu Pacific had 3,297 permanent employees, of which, 2,565 were from operations, 429 from the commercial departments, and 303 from the support departments.