Palace mum on proposed government takeover of PAL

Malacañang on Tuesday kept mum on the proposal for the government to take over the Philippine Airlines (PAL) amid the problems hounding the flag carrier's operations. In a press briefing, presidential spokesman Edwin Lacierda said the Palace will wait for the outcome of the dialogue between the PAL management and the 25 pilots whose resignations caused several cancellations and rescheduling of PAL flights. Senator Francis Escudero said Monday a takeover of the flag carrier is one option for the government since the issue is imbued with national interest. While President Benigno "Noynoy" Aquino III said Sunday the pilots' resignations have affected tourism and the economy, Lacierda said Aquino will not step into the talks, nor will a government takeover be considered at this point. "We are not yet at that point of discussing whether or not the president will step in. It's being handled at the Cabinet level," said the Palace spokesman. Department of Transportation and Communications Secretary Jose "Ping" de Jesus will meet with the 25 pilots at 3 p.m. Tuesday at the DOTC building in Ortigas. In the evening, the government is expected to "broker" the dialogue between the pilots and the PAL management. Lacierda said Malacanang is preparing its options should the two parties fail to resolve the issue, but refused to specify these options pending the results of the dialogue. Lacierda clarified that no decision was arrived at in the meeting of Cabinet and aviation officials last Monday because it was basically a briefing on the current situation. With the dialogue between officials and the pilots later in the day, Malacanang is hoping the issue will be resolved "amicably," he said. "The pilots were very open to discussion, in fact they were hoping and waiting for the government to really help the dialogue . The PAL management as well was also very open and they sincerely hope they will be able to come to a resolution on the matter," he said. Lacierda said the PAL management, which had earlier threatened to charge the pilots concerned, was "very open for the pilots to return to work without any punitive sanction." More than 30 flights have already been canceled over the past few days due to the mass resignation of the pilots, who reportedly sought better opportunities abroad. PAL said the pilots resigned without giving the company ample time to train their replacements, and has given them seven days to return to work or face sanctions. With the row still unresolved, the PAL management announced earlier in the day that more flights have been rescheduled. DOJ chief: Govt to use 'moral suasion' Meanwhile, Justice Secretary Leila de Lima said Tuesday the government is using the moral suasion tack to settle the dispute between the PAL management and the pilots. "The minimum [we can do] is moral suasion, to appeal to the nationalism of the affected pilots. I think the absolute [option] there is a take-over [by the government]," said De Lima at a news briefing. She added that it has become necessary for the government to mediate because the row "is causing a lot of inconvenience" and the airline industry "is imbued with public interest." Aside from De Lima and De Jesus, the other government officials mediating in the issue are Labor Secretary Rosalinda Baldoz, senior deputy executive secretary Amor Amorado, Lacierda, and Civil Aviation Authority of the Philippines (CAAP) general manager Alfonso Cusi. Honor your contracts In the upcoming Tuesday meeting, De Lima said the government plans to ask the pilots to honor their contracts to avert the crisis besetting the flag carrier. "We are appealing to the pilots concerned to go back. There is a commitment [from PAL] that there will be no punitive sanctions if they return voluntarily," said De Lima. She added that in case no amicable settlement is reached, she will prepare her recommendations. Should the case reach the courts, De Lima said the matter will be brought Makati City civil courts, according to PAL rules. — with Sophia Dedace/VVP, GMANews.TV