Erap Steps Up Efforts to Save PAL From Closure

Tempo

Saturday, September  19, 1998

Local News

MANILA (ALP) - President Estrada stepped up efforts yesterday to save national flag-carrier Philippine Airlines (PAL) whose impending closure contributed to a steep fall on the stock market.

Estrada held separate meetings with the union and management five days before the 57-year-old airline, Asia's oldest, is due to close under the weight of crushing losses and labor unrest.

Estrada told reporters he had met PAL chairman Lucio Tan and labor representatives and would meet with them again late yesterday.

Asked if there was a chance to save the airline, he said "it looks like it."

However, he said labor was making heavy demands, adding that Tan had told him “he cannot continue bleeding. He has lost a lot so we cannot also blame him (for wanting to close the airline.).”

PAL has announced that it would close down next Wednesday after the collapse of an agreement between union leaders and management designed to help the airline survive.