Erap Still Hopeful PAL Can Be Saved

Malaya

Sunday, September 20, 1998

President Estrada yesterday said he has not given up on efforts to reach a settlement that would head off the Sept. 23 closure of Philippine Airlines.

Estrada said in his regular radio show the ownership-sharing proposal of PAL chairman Lucio Tan could be a starting point in new talks between management and the PAL Employees’ Association.

He said a similar program adopted by Ambassador Eduardo Conjuangco Jr. in one of his haciendas in Negros has been successful.

He chided some union leaders and their lawyers for refusing to consider Tan's offer to give them 20 percent ownership in exchange for a freeze in their collective bargaining agreement.

He clarified, however, that "hindi ako kumakampi kanino man (I am not taking sides)," saying that he was just expressing concern over the adverse impact the PAL closure would have on the economy.

A PALEA director, Abel Capili, said they are keeping their fingers crossed that the government would step in and save PAL.

“We hope the government, the House of Representatives, and the Senate could present the best way to solve the problem. But there is no way that PALEA will agree to a moratorium on CBA," Capili said.

Estrada earlier ruled out a government bailout.