Manila Standard
Wednesday, December 2, 1996
Between You and Me
By BUTCH DEL CASTILLO
CATHAY-PAL DEAL OFF – It’s all over but the official announcement from the Hong Kong-based Cathay Pacific Airlines Ltd. Cathay has pulled out of the negotiations with Philippine Airlines for a $100 million buy-in of minority stake in the Philippine flag carrier. A golfing buddy revealed that PAL chairman Lucio Tan called up the regional boss of Cathay Pacific and said, “maybe we can talk about a new deal.”
The Cathay executive reportedly replied that his airline would certainly welcome the resumption of talks between both parties “so that we can clear the air as well about many negative things reported in the newspapers.” Earlier, PAL discontinued talks with the panel, claiming that Cathay was making demands concerning the workforce that were unacceptable to PAL.
When time for new meeting came, the top bosses of Cathay were all there, but Lucio Tan did not appear. Tan sent in his stead a party of two vice presidents, but one of them, unfortunately, couldn’t even make it on time. The British executives of Cathay said nothing but were totally miffed by the insult.
Cathay Pacific will most probably make an official announcement today of its loss of interest and enthusiasm for acquiring a substantial stake in PAL.
