PAL management welcomes entry of SMC
MANILA, Philippines—Philippine Airlines’ current management team welcomed the entry of SMC, whose investment would help revitalize the flag carrier.
“SMC’s planned investment will help the flag carrier in its refleeting program and make the airline more viable and competitive,” PAL president Jaime J. Bautista said in a statement.
“A stronger PAL augurs well for the company, its shareholders and employees,” the official said. Bautista has long favored the entry of fresh capital into PAL to help fund the company’s expansion plans to compete with the growing budget airline sector.
He also assured the riding public that the change in management would not result in any disruption in the airline’s operations, especially during the peak summer season that started this month.
“The airline continues to perform its role as the country’s flag carrier, catering to the needs of its passengers especially during the peak travel season,” he said.
Meanwhile, PAL’s embattled labor union, the PAL Employees’ Association, met the news with “guarded optimism.”
Palea president Gerry Rivera said the group hopes that the airline’s new managers, if indeed the investment results in a change of control, would be more willing to return to the negotiating table.
Most of Palea’s members, including Rivera and other top officers, were retrenched last October as part of PAL’s restructuring program that covered over 2,600 employees. The move was approved twice by the Office of the President, but Palea has asked the Court of Appeals to review the Palace decision.
“I think PAL’s new management should rethink the company’s business strategy when it comes to dealing with employees,” Rivera said. “It is the regular employees that have the expertise and experience to help PAL regain its status as ‘Asia’s Finest,’” he said.
“We love our company and we want to serve it,” he said.
