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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (6456)	9/17/1998 11:46:00 AM
From: peter michaelson	Respond to of 9980

PAL's Board Decides to Close The Troubled Airline for Good Dow Jones Newswires MANILA -- The board of Philippine Airlines has decided to close the loss-making airline for good on Sept. 23, an airline spokesman said Thursday. The airline said the closure was caused by the breakdown of negotiations between management and unions to "forge an acceptable arrangement to ensure continuing industrial peace." At the end of last month, some 8,617 workers were on the airline's payroll. The decision was made at a special board meeting convened in Manila to consider a recommendation by a management committee to close the ailing airline. In a statement released after the board meeting, the airline said that management had exhausted all efforts to keep the company operational. Philippine Airlines Union Reverses Decision on Offer (Sept. 17) PAL Sets Tentative Deal With Union; Tan to Transfer Stake to Employees (Sept. 14) "Unfortunately, the insurmountable burden of continued losses has become too heavy for the company to bear," the airline's statement said. "With no fresh capital infusion, Philippine Airlines cannot operate viably in the face of enormous losses amid the harsh business environment," it added. The 57-year-old airline -- Asia's oldest -- will officially close at midnight on Sept. 23. A Philippine Airlines spokesman said Lucio Tan, the company's biggest shareholder, is scheduled to meet with Philippine President Joseph Estrada later Thursday. Mr. Tan is estimated to have a 70% stake in non-listed Philippine Airlines, while the government holds around 18% of the company's shares. The government sold Mr. Tan a large stake in the airline for an undisclosed amount six years ago.