CPA cuts working hours to 72

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DUE to a projected revenue loss of $3.9 million subsequent to flight suspensions that resulted from the novel coronavirus outbreak, the Commonwealth Ports Authority has reduced its working hours to 72 from 80.

During the meeting of CPA board financial affairs and airport facilities committees on Thursday, ports officials discussed the financial impact of the novel coronavirus.

The board members of the Commonwealth Ports Authority review their notes during a break from a meeting on Thursday.  Photo by Emmanuel T. Erediano

CPA board chairwoman Kimberlyn King-Hinds said there was a need “to address the situation at-hand,” adding that they must consider cost-cutting measures that will also ensure that the airports and seaports continue to operate.

In his report, financial affairs committee chairman Ramon A. Tebuteb said should the flight suspensions continue toward the end of the fiscal year, the direct impact would be a $2.2 million reduction in projected revenue.

This will be compounded by a decrease in aviation revenue load, which will result in a $848,677 loss, and a decline in non-aviation revenue resulting in a $807,328 loss, the report stated.

So the total loss is estimated to be $3.9 million, it added.

Tebuteb noted that although some airlines have given a time frame for the suspension of flights, these are not hard dates, and may be subject to change.

Aside from the eight-hour cut in the work schedule due to the projected revenue losses, the committee also recommended other austerity measures. These include a freeze on all travel unless required for reimbursables; a freeze on all personnel actions like hiring, replacements, and promotions; continuation of the freeze on overtime and merit increases; utility conservation; reduction in vehicle usage and fuel consumption; delay in the planned capital improvement projects; and a 25 percent cut in operating expenses.

King-Hinds said committee and board meetings should also be held on the same day to reduce travel expenses.

Usually, committee meetings are scheduled separately and days apart from board meetings.

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