MANILA – Philippine Airlines on Tuesday confirmed reports it was in advanced negotiations with an airline, which could acquire as much as 40 percent of the flag carrier.
Since tycoon Lucio Tan bought back his majority stake in PAL in 2014, the airline has been searching for a strategic investor to help fund its fleet and route expansion.
The company confirmed to the stock exchange a BusinessWorld report, which quoted PAL president Jaime Bautista as saying that a deal was likely within the first half of the year.
The airline, which Bautista did not name, is interested in “less than 40 percent” of PAL. The law limits foreigners to 40-percent ownership of Philippine companies.
Bautista said he hoped the investor would help PAL raise its status to a five star carrier, from the current three stars, by 2020.
Shares of PAL Holdings were up 1.89 percent to P5.40 in early trading on Tuesday.