PAL warns of end to operations

PAL warns of end to operations

MANILA (DPA): Cash-strapped Philippine Airlines (PAL) warned yesterday that the Securities and Exchange Commission (SEC) may completely close the flag carrier after it was placed under temporary receivership amid worsening labor woes.

Avelino Zapanta, PAL vice president for sales and services, urged the unions of the airline's flight attendants and ground employees to re-consider their planned strike following the SEC's creation of an interim receivership committee.

"If more labor problems occur, the SEC might conclude that there is no hope for PAL, and its assets would have to be liquidated to ensure that financial obligations are met," Zapanta said. "If that happens, even the remaining 9,000 employees will lose their jobs."

PAL has already retrenched 5,000 flight attendants, cabin crew and ground staff after it drastically cut its operations due to the crippling strike of more than 600 pilots since June 5.