MANILA, Philippines - The management of Philippine Airlines (PAL) welcomed the entry of San Miguel Corp. as a new investor in the holding company that owns majority shares of the flag carrier.
In a statement, PAL president Jaime J. Bautista said the planned investment will help PAL in its refleeting program and make the airline more viable and competitive.
On Tuesday night, San Miguel Corp. and businessman Lucio Tan signed investment agreements to buy minority stakes in PAL) and Air Philippines Corp. The size of the deal was not disclosed.
The deal with Tan's Trustmark Holdings and Zuma Holdings will give San Miguel indirect stakes in both PAL and its low-cost partner firm Air Phil.
With the entry of a new investor, Bautista assured the public that "it's business as usual for PAL."
PAL will continue to perform its role as the country’s flag carrier, catering to the needs of its passengers especially during the peak travel season.
PAL, which has also suffered from rising fuel costs and labour problems, posted a net loss of $33.5 million in the three months ending Dec. 31 compared with a net profit of $15.1 million a year earlier.