MANILA, Philippines — Lucio Tan III, grandson of taipan Lucio Tan, will occupy a key position in his grandfather’s loss-making airline company, which has taken the brunt of depressed travel demand amid the coronavirus pandemic.
In a disclosure to the stock exchange on Thursday, PAL Holdings Inc., the listed operator of flag carrier Philippine Airlines, announced the appointment of the younger Tan as company vice president.
The third generation Tan’s ascent to power comes at a turbulent time for PAL. The company is currently undergoing “a comprehensive restructuring plan” meant to help it take off from a pandemic-induced crash after lockdowns sapped demand for travel. PAL said the rehabilitation program won’t affect its flight operations.
The carrier has not released much details about its recovery plan, but multiple reports say PAL’s strategy includes a Chapter 11 filing in the US, a form of bankruptcy that seeks creditor protection while the restructuring program is ongoing. The company is also reportedly downsizing its fleet by returning some planes to lessors in order to conserve cash.
That said, Tan would now play the difficult task of helping shore up PAL to recovery. Prior to his new appointment, he has taken in more roles in his grandfather’s business empire, including occupying a seat at the board of Philippine National Bank.
In late 2019, the son of the late Lucio “Bong” Tan Jr. was appointed president and chief operating officer of rum maker Tanduay Distillers Inc.