MANILA, Philippines - Flag carrier Philippine Airlines (PAL) is for sale at the right price, its owner told reporters in a chance interview on the sidelines of the Bangko Sentral ng Pilipinas’ annual bankers’ reception Friday.
“If the price is good,” said Lucio Tan, when asked if he is selling a majority stake in PAL.
He also confirmed that “some of his friends” have expressed interest in investing in PAL. These friends include corporate tycoons Ramon Ang of San Miguel Corp. and Philippine Long Distance Telephone Co. (PLDT) chairman Manuel Pangilinan.
He, however, provided no details if there are indeed formal negotiations with specific parties as well as confirm top-level talks with potential investors and his reasons for selling.
PAL employees earlier said they have not been updated on the status of top-level talks with potential investors such as Ang and Pangilinan.
San Miguel, for its part, had disclosed that that planned venture would finance the company’s refleeting program.
The management of the country’s flag carrier, for its part, said it welcomes the possible entry of a new investor.
A refleeting would enable PAL to upgrade its aging planes by 2015.
According to latest data, PAL reported a loss of $39.4 million for the second quarter of its fiscal year, or from July to September 2011, due to high fuel costs.
PAL had expected the average fuel cost to hit $120 per barrel but this has risen to $135 per barrel.
For its current fiscal year, PAL expects to post losses because of high fuel costs and revenue losses brought about by the strike of its employees.
Last September, PAL employees went on strike in protest of the company’s outsourcing plans. The strike resulted in crippled operations for PAL and thousands of passengers stranded.