PAL to slash jet purchase

PAL to slash jet purchase

MANILA (AFP): Philippine Airlines (PAL) has decided to slash by half a US$4-billion program to buy new aircraft because of a recent Labor Department ruling favoring its restive employees, chairman Lucio Tan said Tuesday.

"We have agreed to downsize to one-half of $4 billion," the tycoon said, adding that the decision was reached by the PAL board.

The decision will affect PAL's order for 36 planes from Boeing Co. of the United States and the European consortium Airbus Industrie. The planes had been scheduled for delivery over the next two years.