Ang steps down as PAL president

MANILA, Philippines - Businessman Ramon S. Ang officially stepped down yesterday as president and chief operating officer of flag carrier Philippine Airlines Inc. (PAL) almost a month after the group of taipan Lucio Tan bought back the shares of diversified conglomerate San Miguel Corp. (SMC) for $1.3 billion.

A source said Ang, who is also president and chief operating officer of SMC, would likely be replaced by former PAL president Jaime Bautista who is currently acting as the airline’s general manager.

Last Sept. 15, Tan, who is chairman of PAL, took back full control of the airline after completing the $1.3 billion to re-acquire the 49 percent interest that SMC bought in PAL in April 2012.

In April 2012, SMC’s wholly-owned subsidiary San Miguel Equity Investments Inc. (SMEII) acquired a 49 percent equity interest in Trustmark Holdings Corp. for $500 million. Trustmark owns 97.71 percent of PAL Holdings which in turn owns 84.67 percent of PAL through PR Holdings Inc.

With SMC on board, PAL embarked on a massive fleet renewal program involving the acquisition of 100 brand new aircraft. PAL entered into its first Purchase Agreement with Airbus for firm order of 44 A320 aircraft with options for 20 A321 NEO aircraft for delivery in fiscal years 2014 to 2020. It also signed a second Purchase Agreement for a firm order of 10 A330-300 and options for another 10 for delivery in fiscal years 2014 to 2016.

However, PAL and Airbus agreed to an amendment last March wherein the number of order of A330-300 aircraft would be reduced to 15 instead of 20. It dropped an option to acquire eight A321 NEO aircraft in the first purchase agreement but agreed to acquire eight A321 NEO. The airline has until 2017 to exercise its right to purchase four A321 NEO aircraft.

As of end-June, PAL has received a total of 17 aircraft from Airbus including 10 A330 and seven A321. The fleet of the PAL Group including PAL Express stood at 85 as of end-June.

With the Tan Group back at the helm, Bautista said PAL is looking at delaying the delivery of Airbus aircraft.

 “We have to discuss with Airbus. It can be deferred, but of course, that entails cost if you defer delivery,” Bautista earlier told reporters.