Manila Standard
Sunday, December 13, 1998
With this help, the differences between Philippine Airlines (PAL) and Cathay Pacific Airways will be settled to ensure that the merger between the two airlines will push through before Christmas, President Estrada said yesterday.
“For now, negotiations (with foreign airlines) are still hanging. Northwest Airlines is backing out. But until now, I have not lost hope in the PAL-Cathay deal,” Mr. Estrada said in his weekly radio program.
The President said he would try to see to it the fate of the flag carrier is resolved before Christmas.
He said the management of PAL informed him that the airline is still losing P21 million daily because it is overstaffed.
PAL management said the “open skies” policy adopted by the Ramos Administration is also one of the major factors why the flag carrier is losing a lot of money.
The policy allows foreign airlines to enter the country, which means greater competition for local airlines.
Mr. Estrada said PAL’s continued operation is important to the country because its closure would affect both big and small businesses.
Recently, the President said he would call for a meeting with PAL and Cathay for another round of negotiations after talks between the two collapsed.
He added there is still a chance for the two airlines to come to an agreement despite reports that Cathay Pacific had irrevocably pulled out of talks to buy a controlling stake in the national flag carrier.
Mr. Estrada expressed hope that the proposed merger between PAL and Cathay Pacific will push through, noting that the latter is a worthy partner for PAL. Lee Ann L. Pattugalan
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