Estrada Vows to Keep PAL Flying

Today

Monday, December 7, 1998

DESPITE the news that Cathay Pacific has withdrawn from the talks for a possible merger with Philippine Airlines, the Estrada administration is confident that ways could still be found to allow the country's flag carrier to continue operations.

"As President, I will do everything so that PAL will continue operating," Estrada said.

He added that despite Cathay Pacific's announcement that it is withdrawing from the talks, he will still meet with the president of the Hong Kong-based airline and PAL chairman Lucio Tan.

As this developed, Cathay Pacific's director of operations, Peter Foster, denied a published report (not in TODAY) that Cathay has gone back to the negotiating table.

"We are not having talks with PAL. The talks are over," Foster said.

He added: "However, we have good contact with the government, including obviously the executive branch, and we will maintain that contact."

Malacañang reported that Estrada sought an appointment with officials of Cathay Pacific and Tan. The meeting was scheduled today.

Cathay had pulled out of negotiations with PAL, but the President invoked an earlier commitment by Cathay officials to help sustain PAL.

PAL, however, expressed confidence that it can rehabilitate itself on its own and is about to submit a stand-alone rehabilitation program to the government receivership committee on Monday. - R. Mercene