SAN Miguel Corporation (SMC, one of the Philippines’ largest conglomerates, has purchased a 49-per cent stake in Philippine Airlines (PAL) and its low-cost subsidiary Airphil Express for PHP21.5 billion (US$500 million).
In a joint statement to shareholders, PAL chairman Lucio Tan and SMC president & COO Ramon Ang said: “The new investment will allow the two airlines to strengthen operations and stay competitive with the implementation of PAL and Airphil’s fleet modernisation programme.”
Lucio Tan will remain chairman and controlling shareholder of the Philippine flag carrier after the deal is concluded.
The sale comes after PAL’s announcement over the weekend of a new Manila-Bali route that will operate twice weekly, starting April 28.
PAL spokesperson Cielo Villaluna told TTG Asia e-Daily: “We are also planning to open a route connecting Cebu to Darwin, Australia, which is only three hours away. It is definitely in the pipeline.”
PAL received its fourth Airbus A320 last week, bringing its fleet to 37 planes. The carrier will acquire two more Boeing B777-300s by end-2012 and in 2013, respectively.
Meanwhile, SMC, which recently diversified into airport infrastructure development, is interested in investing in Clark International Airport.
Clark recently issued a PHP360 million tender for expansion of its existing passenger terminal, and is looking to construct a new budget terminal in anticipation of increased arrivals.
