Airlines Philippines

Philippine President Joseph Estrada during the weekend appealed to the labor unions of Philippine Airlines Inc., Asia's oldest national carrier, to reconsider their position in hopes of averting its closure. Citing enormous losses and protracted labor conflicts, the 57-year-old airline announced Thursday it will suspend operations at midnight Wednesday. PAL would be one of the biggest companies fold because of Asia's ongoing financial turbulence.

Philippine Airlines' management and largest union said Monday they reached a breakthrough agreement on a management-proposed plan to revive the airline, five days after the airline's closure, a labor leader said. Details would not be released until given to union members.

Philippine Airlines Inc. plans to resume its international flights at the end of the month after consultations with potential investors. The airline would initially fly the Manila-San Francisco-Los Angeles-Manila route three times a week, beginning Oct. 29. The financially ailing airline revived domestic flights on Oct. 7 after Philippine President Joseph Estrada persuaded PAL's biggest union to accept a management offer of 20% equity in exchange for a freeze on strikes.

The Philippines plans to privatize flag-carrier Philippine Airlines next year, officials said over the weekend. A company spokesman said the government wants to sell up to 35% of the carrier to a foreign airline and 45% to employees and the public. That would leave the government with a 20% holding. The airline is now about 99% government-owned. PAL is among 300 government properties that President Corazon Aquino targeted for privatization under an ambitious program launched in 1987.