With the due diligence already completed, Philippine Airlines expects the entry of a strategic investor anytime within the first half of this year. PAL president Jaime Bautista declined to identify the investor stating that it is also an airline company. He did not comment on the country of origin of the strategic investor.
The Philippines allows foreign investor to own up to (maximum) 40% stake of a local company. PAL’s investor is interested in less than 40% although they are willing to give up the maximum allowed if the investor is willing to make that investment.
This new investor is can help contribute equity, management, route, codeshare and possible membership in an alliance. Despite being in “advanced talks,” the PAL executive said it is still open to other possible investors.
Aviation think-tank CAPA recently disclosed that San Miguel Corporation (SMC), one of the Philippines’ largest conglomerates, is considering putting up its own airline company.
To be based in Caticlan Airport, gateway to Boracay, the airline is said to fly both domestic and international flights.
According to company sources, SMC is in talks with Boeing, Bombardier and Embraer respectively. SMC previously owned a 49% stake in Philippine Airlines until 2014 when Lucio Tan acquired it for USD1.1billion.