Palace: PAL sale OK with us
Malacañang on Monday welcomed plans by taipan Lucio Tan to sell national flag carrier Philippine Airlines (PAL).
“We welcome the additional investment of whoever would like to buy PAL because it would mean additional investments to the country,” presidential spokesperson Edwin Lacierda said.
Lacierda said that an additional investment in PAL would mean “improved services.”
“Considering that PAL is our national brand, the additional investment would improve the branding of our national carrier,” he added.
Transportation Secretary Manuel “Mar” Roxas II also said he supported any move that would result in the infusion of fresh capital into PAL, which has struggled against low-cost local carriers over the past decade.
“The government will always welcome more capital in the airline industry in order to strengthen its competitiveness,” Roxas said in a text message.
He said the government would keep its hands off the discussions between private sector stakeholders.
“Who partners with whom is a private matter…so (government) will not micromanage,” said Roxas, a former senator and a senior member of the administration’s economic team.
“Government interest is sufficient capital so that safety and reliability are assured,” he said.
Tan, who owns 94 percent of Asia’s oldest airline, has confirmed reports that he was in the thick of discussions for the sale of PAL with two separate groups—that of San Miguel Corp. and its corporate rival, the group of Manuel V. Pangilinan.
PAL president Jaime J. Bautista has said the firm’s shareholders had long been in search of new investors willing to infuse fresh capital into the airline.
The additional funds would be used to expand the company’s fleet of aircraft and improve its other services.
Bautista himself has denied any knowledge of discussions between PAL’s controlling bloc and either Pangilinan or San Miguel. However, unconfirmed reports earlier this month said Bautista had direct participation in the negotiations.
While San Miguel has confirmed having been approached by PAL to “participate” in the latter’s refleeting program, the Pangilinan group has been mum about it.
