PAL status quo JAL

The financial and economic crisis, which triggered a steep drop in air travel worldwide is also having a contagion effect on Philippines Airlines(PAL).

Carriers are competing for passengers with lower fares and the rise in oil prices are creating poor margins to the airlines.
PAL Holdings, Inc., (the Company), was incorporated in 1930 as “Baguio Gold Mining Company”.
On August 17, 2006, the Board of Directors (BOD) approved the acquisition of the following holding companies which collectively control 84.67% of Philippine Airlines, Inc. ( PAL); PAL Holdings, Inc., Cube Factor Holdings, Inc., Ascot Holdings, Incorporated., Sierra Holdings & Equities, Inc., Network Holdings & Equities, Inc., and Maxell Holdings Corporation.
The authorized capital stock of the Company is Peso 20 billion divided into 20 billion common shares of Peso 1 par value.
Lucio C. Tan is the Chairman and Chief Executive Officer who also owns the Jollibee Fast Food franchise outlets.
On October 17, 2007, the Securities and Exchange Commission approved the equity restructuring of the Company. This allowed the Company to wipe out the deficit as of March 31, 2007 amounting to P253.73 million using the Additional Paid-In Capital amounting to P4,029.3 billion subject to the condition that the remaining additional paid-in capital will not be used to wipe out losses that may be incurred in the future without prior approval of the SEC.
PAL executives are not sure if they can successfully convince their employees to accept a pay cut of at least 40 percent the way the JAL management did. JAL’s employees agreed to slash their corporate pensions in an effort to save the company from bankruptcy. About 10,700, or over 66 percent of JAL’s 16,000 workers, agreed to a reduction in their corporate pensions.
However,PAL’s employees had remained stubborn and threatened to call a strike, instead of engaging constructive discussions with management to address company issues. PAL’s management has pleaded to continue negotiations with the labor union to prevent the situation from going out of hand and enable both parties to come up with doable solutions.

The Dow,Wednesday 20/01/10.(January month contract begins)

Asian Index Futures Expiry:7 market days to go.(Volatility buy)(signs of contracts migration)
9:30am:--Unshaven bearish top slide.

10:30am:--Graveyard doji at session low,no sign of opening gap-down being filled.

11:30am:--Another session low,bulls hammering the bottom.

12:30noon:--Consolidation time,slight rebound with weak bulls inverted hammer.

1:30pm:--A double bottom,ascending soldiers.

2:30pm:--The bear pivot resistance being tested,dragonfly dojis.

3:30pm:--The bear resistance breakout.,bullish engulfing.

4:00pm:--Failed to reach the MAV resistance line.Follow up slight pull back and up north it goes.

The 7th day before the Asian index futures expiry,will see a bullish swing again as the low has been executed on the eve. Today the executioner has used the banking fears aided by China's banks lending curbs and disappointed Bank of America accounting figures to artificially create a bear trap.The lower shadow hit right on target at the bear's pivot support.

The December Producer Price Index increased 0.2% month-over-month while housing starts were slightly slower.