Tempo
Wednesday, December 9, 1998
By ISABEL C. DE LEON
Malacañang insisted yesterday it will not bail out or subsidize Philippine Airlines and that Hong Kong-based Cathay Pacific Airways is still in the thick of negotiations for a stake in PAL.
“The government’s policy is unchanged,” Presidential Spokesperson Fernando Barican told a press briefing yesterday.
He said the "bridge financing" referred to by Finance Secretary Edgardo Espiritu will depend on the commercial viability of PAL’s continued operation, the administration of the usual credit evaluation, the financing package that will involve a consortium of private banks and strategic partners as approved by PAL creditors and the Securities and Exchange Commission (SEC).
Barican said President Estrada remains confident that these conditions will be met and the nation's flag-carrier will remain on air.
Espiritu earlier said that the government will revive its bridge financing program for PAL if it can get foreign airlines and companies to invest in it.
He added that the remaining major concern is the constitutional limitation of Cathay's participation in the policy and decision-making in PAL.
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