NEWSFLASH

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PAL ALLOWED TO HIKE DOMESTIC FARES

Manila, Nov. 13, 1997 - The Philippine government today allowed Philippine Airlines to increase domestic fares by 35%. The fare increases would affect 24 of 40 routes nationwide.

Transport Secretary Arturo Enrile said the airline has been permitted to raise passenger and cargo fares beginning November 15 on domestic destinations where rival airlines also operate.

Airline spokesmen has earlier said the peso's depreciation had increased operating costs because aviation fuel and aircraft parts and supplies are priced in US dollars. The peso has depreciated by about 24 percent against the dollar since July.

PAL, the country's flag carrier, has begun a $4 billion modernization program, including $3.2 billion to purchase 36 new planes.

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