20-Jan-2010 11:37 AM

PAL in urgent need of a capital infusion

Philippine Airlines (PAL) President, Jaime J Bautista, reportedly recently stated the carrier is in urgent need of a capital infusion or it will go bankrupt (Manila Bulletin, 19-Jan-2010). PAL Employees Association (PALEA) has now written to the Philippine Government asking whether it would be possible for the government to take over operations of the carrier if it is indeed on the verge of failing. However, the Department of Labor and Employment (DoLE) has stated the chances of a government take over are “very remote”, as it does not have the “capacity to operate an airline”.