BusinessMirror May 16, 2020

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BusinessMirror

www.businessmirror.com.ph

A broader look at today’s business n

Saturday, May 16, 2020 Vol. 15 No. 219

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‘We will survive’

PAL, Asia’s oldest commercial airline, places bets on domestic tourists, Pinoys abroad to help it recover from Covid-19 By Ma. Stella F. Arnaldo

W

SANTA MARIA: ‘We’ve been around for 80 years, and we will be around for a while longer, performing an essential service.”

Special to the BusinessMirror

E’RE not giving up. These were the brave words spoken by Philippine Airlines (PAL) president Gilbert Santa Maria, during a webinar on the tourism industry hosted by Go Negosyo, even as he dangled the specter of possible bankruptcies in the local aviation industry.

THE Ninoy Aquino International Airport Terminal 1, designed to accommodate 6 million passengers per year, is seen on May 3, 2020, almost empty except for a few passengers and employees. NONIE REYES

“PAL has the largest fleet in the Philippines. Our planes are new but very expensive, so this is a great time of challenge for us. We’re not giving up. We’ve been around for 80 years, and we will be

around for a while longer, performing an essential service,” he said. Due to the lockdown in Luzon and in other parts of the country to contain the spread of the novel coronavirus, PAL’s planes are just parked, not earning any revenue, except for the occasional sweeper flights contracted by the Department of Tourism and Department of Foreign Affairs. “The biggest challenge of airlines is the absence of revenue, from 1 million passengers in January for PAL, to about zero in April, Continued on A2

Hong Kong’s economic crisis just keeps getting worse By Enda Curran, Jinshan Hong & Eric Lam

O

Bloomberg

N the ninth floor of a building near Hong Kong’s old Kai Tak airport, Kung Fu master Lam Shushing teaches the Wing Chun technique to students, something he’s been doing since 1978. A banner on the wall nods to a legacy that traces back to his teacher’s master, who also trained Bruce Lee. Passing on this cultural touchstone to the next generation is proving to be Lam’s biggest challenge yet as the number of students has dwindled to a handful. “This is the toughest moment in the past 40 years that I am teaching Kung Fu,” said Lam, who at almost 70 had to give up his gym when he couldn’t afford the rent. “I don’t see any improvement in Hong Kong any time soon.”

First came months of protest in 2019 and then the coronavirus outbreak, sending Hong Kong spiraling. Now, just as other economies around the world look to a recovery as their virus restrictions ease, Hong Kong’s reprieve appears fleeting: clashes between police and protesters are resuming and worries about another virus wave remain. It’s a dual threat that has

PESO EXCHANGE RATES n US 50.3720

BRUCE LEE’S ORPHANS Lam Shu-shing watches his students practice. BILLY H.C. KWOK/BLOOMBERG

businesses and shoppers on edge and raises fundamental questions about how—or if—one of the world’s most storied finance hubs will regain its past prominence. Financial Secretary Paul Chan has described Hong Kong’s economic challenges as unprecedented. In the first quarter, the city had its worst slump on record. Even pillars of the economy that had been holding up, like finance and real estate, are showing signs of softening. In the property market—the world’s priciest—the political deadlock is eroding demand from buyers based in mainland China, according to Simon Smith, head of research and consultancy at Savills Plc. “Obviously, the outbreak really reduced mainland visitors to almost nothing and the return of the unrest will continue to keep them away,” he said. Wealthy individuals from China had dominated the high-end home market, with about 60 percent of international buyers Continued on A2

n JAPAN 0.4698 n UK 61.6251 n HK 6.4981 n CHINA 7.1006 n SINGAPORE 35.3985 n AUSTRALIA 32.5554 n EU 54.4471 n SAUDI ARABIA 13.4129

Source: BSP (May 15, 2020)

THOR JORGEN UDVANG | DREAMSTIME.COM

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