Sunday 25 February
Powered by Ajaxy
Oct 29, 2017 @ 20:56

PAL expects to end year in the red. Here’s why


Saddled with P6 billion in unpaid obligations to the government, Lucio Tan-owned Philippine Airlines is seen to swing to a loss this year.

The P6 billion represents the unsettled navigational fees and other charges PAL owes to the Civil Aviation Authority of the Philippines and the Manila International Airport Authority.

PAL president Jaime Bautista said the airline was most likely to report a net loss this year due to its huge payables to the government.

“It will affect our cash flow, we will have to borrow money to pay for it. That’s the impact, its additional cost,” Bautista said.

Bautista said PAL is now in talks with local banks.

President Duterte earlier threatened to close down the Ninoy Aquino International Terminal 2, which PAL has been exclusively using since 1999 if the Tan-led airline failed to settle its debt to the government.

PAL’s parent firm PAL Holdings Inc. Incurred a comprehensive loss of P1.05 billion in the first half, a reversal of the P4.6 billion loss reported in the same period last year.

Tags: , , , , ,

Related Stories
Bilyonaryo Lucio Tan recently went to Subic Bay International Airport to personally inspect the site
President Rodrigo Duterte proved he has buried the hatchet with Lucio Tan by meeting the
Philippine Airlines has deferred plans to build a P20 billion passenger terminal at the former


Trending News

Recommended on sister sites

Copyright © 2018 Bilyonaryo - Latest news on the richest Filipinos and Family Business.