The Philippine tourism industry was also hit hard by the strike and temporary closure of PAL. Fewer tourists entered the country; moreover, movement between the Philippines' many islands was more difficult without the service of Philippine Airlines.
PAL reopened on October 7, after the pilots and management finally agreed
on a contract.
| January 16, 1998 | Philippine Airlines (PAL) cancels the delivery of four Boeing 747 jumbo jets, valued at $600 million. Investors view this as a direct result of Asia's economic turmoil and currency crisis, and of a general downturn in the aviation industry. |
| March 22, 1998 | A PAL plane (Flight 137) overshoots the runway in Bacolod, and kills 3 people in a residential neighborhood. |
| March 31, 1998 | PAL posts its largest-ever annual loss, exceeding eight million pesos. |
| June 5, 1998 | PAL's 600 pilots go on strike, protesting the company's policy of forced early retirement. |
| June 15, 1998 | PAL announces that it will lay off more than one third of its workforce. Five thousand of the thirteen thousand PAL employees end up being laid off. |
| June 19, 1998 | PAL files for a receivership with the Securities and Exchange Commission (SEC). The SEC appoints a committee to oversee PAL's recovery. |
| July 22, 1998 | PAL ground personnel go on strike. |
| July 26, 1998 | The ground personnel union reaches an agreement with PAL management. |
| August 1998 | Reports of the Philippine's suffering tourism industry start surfacing. The PAL pilots' strike is cited as the primary cause for the tourism slump. |
| September 23, 1998 | PAL shuts down operations after union representatives reject management's recovery plan. Management's proposed plan would have suspended the workers' bargaining power for ten years; in exchange, the workers would have received 20% ownership of the airline and three seats on the board. |
| September 29, 1998 | Philippine President Joseph Estrada meets with PAL chairman Tan and union president Barrientos at Malacanang Palace. A deal is made. |
| October 1-2, 1998 | Union members ratify the agreement. |
| October 7, 1998 | PAL reopens, offering only domestic flights. PAL debt stands at $2.1 billion. |
| October 12, 1998 | PAL cancels plans to resume international flights. They had originally intended to start flying to Hong Kong, Tokyo, Los Angeles, and San Francisco on October 13. |
| October 30, 1998 | PAL offers a flight from Manila to Los Angeles, marking the recommencement of their international service. |
| November 11, 1998 | PAL resumes service to Tokyo and Hong Kong. |
| December 7, 1998 | PAL submits a "stand-alone" recovery plan to the SEC. |
| May 5, 1999 | A group of Kuwaiti investors offer $200 million to take over PAL. |
| June 12, 2000 | After seven years of losses, PAL announces net profits of 44.2 million pesos ($1.04 million) for the 1999 fiscal year. |
| June 19, 2000 | Lucio Tan offers to sell his majority stake in PAL for $50 million. The buyer, however, must also inherit PAL's $2 billion debt. |
Jose Penas, Secretary of the Ground Workers Union
Airline Pilots Association Of The Philippines (ALPAP)
The Securities and Exchange Commission (SEC)
Joseph Estrada, President of the Philippines, a former B-movie star, elected June 30, 1998
Ninoy Quino International Airport, in Manila
Philippine tour operators and travel agencies: Baron, Marsman, Blue
Horizon, Morning Star, Galactica, Focus, Experts, Budget, Starts, Kenstar,
Morella, Anggala, Pan Pacific and Southeast.
Philippine Airlines ("PAL" or "PR") is Asia's oldest airline, with 54 aircraft, 36 domestic destinations, and 28 international destinations. The airline flies from Manila to Dhahran, Fukuoka, Hongkong, Los Angeles, Osaka, Riyadh, San Francisco, Seoul, Singapore, Tokyo, and Xiamen. Its domestic flights service Manila, Bacolod, Butuan, Cagayan de Oro, Cebu, Cotabato, Davao, Dipolog, General Santos, Iloilo, Kalibo, Legazpi, Naga, Puerto Princesa, Roxas, Tacloban, Tuguegarao, and Zamboanga.
Lucio Tan, PAL chairman, largest PAL shareholder
Avelino L. Zapanta, PAL president
Manolo Aquino, PAL executive vice president for administration and services
Philippine National Bank, PAL's largest creditor
Chase Manhattan Corp., PAL's second-largest creditor