PAL’s safety at root of SMC-CAL deal

| 15/11/2012

Philippine-Airlines.jpg(CNS Business): The motivation to invest in Cayman Airways by a Filipino company to address its airline’s problems has raised concerns that the National Flag carrier could fall foul of important aviation regulations. A proposed deal with San Miguel Corporation that could see the Asian company eventually own as much as 50% of CAL appears to be about addressing the problem it has with Philippines Airlines Ltd (PAL), which SMC owns. The Philippines media reported this week that the deal with CAL “could be the long-awaited solution to the downgraded aviation safety status’ suffered by PAL since 2008. As reported on CNS Business last month, the airline wants to use CAL’s good standing to circumvent its category 2 status in the USA and blacklisting in Europe. Read more on CNS Business

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