MANILA, Philippines — Lucio Tan III, grandson of taipan Lucio Tan, was appointed as the new president of the parent of Philippine Airlines (PAL), marking a new dawn for the flag carrier as it rebuilds its services and fleet.
At its annual stockholders’ meeting, PAL Holdings Inc. (PHI) elected Tan III as president, taking over the post previously held by his grandfather, who was retained as chairman and CEO.
As president, Tan III promised that PHI will climb back to stability in the pandemic aftermath, as it builds on the gains it made in raising both its topline and bottomline.
Tan III said that he would work closely with PAL president and chief operating officer Stanley Ng in developing and offering the best products and services for passengers. Further, he vowed that his leadership in PHI would be marked by a culture of accountability and transparency.
On the other hand, chairman and CEO Tan challenged his grandson to take PAL to new heights, especially as the airline faces risks brought on by economic trials. He said the flag carrier has to improve its services and fleet to be able to compete with its rivals.
“We face major challenges just the same. We need to rebuild our product and our fleet. Likewise, Philippine Airlines needs to be a stronger competitor and a leader in service and innovation,” Tan said.
PHI booked a net income of P8.77 billion in 2022 that the firm attributed to its restructuring plan and resurgent operations in the pandemic aftermath.
In its financial report, PHI said that its revenue doubled to P139.24 billion, outpacing the 94 percent increase in expenses to P121.93 billion.
PAL, for its part, tripled the number of passengers it serviced to 9.31 million last year from 2.97 million in 2021. As such, PAL has decided to reinstate most of its pre-pandemic routes, including to Chinese cities, as well as to launch a new flight connecting Manila with Perth, Australia.
Down the line, PAL will acquire nine new wide-body aircraft for delivery from 2025 to 2027. In a memorandum of agreement with Airbus, PAL bought nine A350-1000s to expand its fleet for long-haul flights, as it looks to increase its flights to North America and explore its opportunities in Europe.
For the year, the flag carrier will reactivate its full fleet of 75 aircraft to serve its operations both domestic and international.
PHI, a member of the Lucio Tan Group of Companies, serves as the parent of PAL and a unit of Air Philippines Corp.