The Supreme Court affirmed the decision of the Court of Appeals in the retrenchment of 1,400 employees of Philippine Airlines, flight attendants and stewards in 2006.
The en banc decision of SC, showed the legality of CA for PAL to counter the financial losses worth P90.6 billion.
As stated by SC “Through these rulings, the Court consistently recognized PAL’ s financial troubles while undergoing rehabilitation and suspension of payments.

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