NEWSFLASH

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PAL-LUFTHANSA ALLIANCE FOR AIRCRAFT MAINTENANCE

Manila, April 23, 1998 - Philippine Airlines and Lufthansa are in the middle of negotiations for the establishment of a new company that will provide aircraft maintenance services in the Philippines.

Jaime Bautista, chief finance officer and senior vice president of PAL said the new company could be operational in three to six months. The talks are centered on ownership structure and the composition of a management team, with Philippine Airlines having the controlling interest.

"There is a huge glut in skills in aviation and we can address that. We can offer good rates and we have good mechanics and trained people," Bautista said.

Other companies already approached by PAL for the project are General Electric and Swiss Air.

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