Philippine Airlines won’t go bankrupt as Lucio Tan pours in US$300mil

Tycoon Lucio Tan poured in at least P15.2b into Philippine Airlines, making it safe from immediate bankruptcy, according to PAL president Gilbert Santa Maria. Santa Maria said Thursday that one-third of the capital infusion, or about P5 billion, was deployed this year to keep the airline afloat during the Covid-19 pandemic, which has grounded air travel. “Without that liquidity, Philippine Airlines would probably not be here anymore, ” Santa Maria said. For now, PAL is “not in immediate danger of bankruptcy” but Santa Maria noted that prospects remained dim. He said the carrier was expected to exit the lockdown by the end of this month with losses of about US$1b while recovery for the airline industry could take a few years. “We are hanging on. We are waiting to fulfil our mission as the flag carrier,” Santa Maria said. He said PAL is also not considering any near-term job cuts after laying off 300 employees, or 5% of its workforce, last February. “At this point in time, it will be extremely inhuman of us to drop our employees on the streets while a pandemic is raging,” Santa Maria said.<br/>