The countrys only presidential plane, an aging Fokker 28, might lose its two engines as a Texas-based repair shop has reportedly threatened to put them on the auction block to recover the cost of repairs.
Malacañang has also filed a civil case before the Parañaque Regional Trial Court to compel the Singapore-based Fokker Service Asia (FSA) to return the aircraft to the Office of the President.
The 28-seater plane was flown to Singapore in March last year for "preventive" maintenance, repair and sprucing up by FSA which in turn commissioned the Dallas Airmotive Inc. for the overhaul of the two engines without informing or getting prior permission from the Philippine government.
A dilemma evolved after Malacañang demanded immediate delivery of the presidential aircraft the Philippine counterpart of the United States world-famous Air Force One but the FSA wanted its money first, saying cost of repair and refurbishment on the body amounted to $900,000.
On the other hand, repair job on the engines reportedly cost $1 million.
Senior Deputy Executive Secretary Waldo Flores said the Office of the President has the funds to settle the cost of repair and rehabilitation, but hinted that there were some principles involved in the negotiations.
"Its not just a matter of paying them. We want first to review it, to check the scope of work done and the spare parts put in," Flores stressed.
Flores said his meeting on Wednesday with FSA executive Michael Cole ended in a stalemate.
"Basically, were asking them (FSA officials) to return the plane to us because there was no meeting of the minds during our negotiations," Flores said.
He added, however, that Cole told him his company was willing to waive the parking fee for the presidential plane, plus a discount of about $300,000 just to settle the case.
"We cannot proceed yet until we finished the requirements. We dont want to be accused of proceeding on something without following the proper procedures," the Palace official asserted. Marichu Villanueva