Erap Vows to Save PAL 'At All Costs'

Filipino Monitor

Thursday, December 24, 1998

Feature

MANILA -- President Joseph Ejercito Estrada has vowed to save Philippine Airlines (PAL) at all costs, saying too much is at stake in the airline's continued operation.

Estrada told reporters that it is his duty as President to save PAL because all businesses will suffer once the country's flag carrier closes down.

"Well, I would say that at all cost we will save PAL because it is the flag carrier of the Philippines. It is the first commercial airline of Asia. So at all cost we will save Philippine Airlines," he said.

The President also said he will leave to the PAL management the decision of choosing the airline's strategic partner.

He said he is still hopeful PAL can clinch a deal with Hongkong-based Cathay Pacific Airways. U.S.-based Northwest Airlines, he added, has quit from negotiations.

"We are not losing hope on Cathay because we know PAL means a lot not only to big business but to the common farmers and fisher folk as well," he said.

The President cited claims by PAL officials that the airline is losing heavily, with losses amounting to some P21 million a day.

He said the airline suffered from overstaffing and the "open skies" policy adopted by the previous administration, which allowed foreign airlines to compete with PAL in domestic routes.

Last week, PAL submitted to a government receivership committee a stand-alone rehabilitation program that its management said will allow the airline to become viable again.