Philippine Airlines revives talks with strategic investors

MANILA, Philippines - Philippine Airlines (PAL) is in talks to bring in a strategic investor to support the company’s expansion plans.

PAL president and chief operating officer Jaime Bautista told reporters that while the carrier is not in a hurry to get a strategic investor, its financial adviser is currently in talks with potential investors.

“We are considering some,” he said, but declined to name the parties being considered citing confidentiality agreements.

PAL is looking for a strategic investor as it looks to expand its operations in the international markets.

“As we expand, as we take delivery of more airplanes, as we compete in Asia, the US, Europe, we will need that (investor),” Bautista said.

According to Bautista, PAL is aiming to be the preferred carrier in all the markets where it operates and so, it would need the help of a partner in growing its presence in certain areas. “(We need) companies that will help us grow our market,” he said.

For instance, partners from Europe who can carry PAL’s passengers from London and beyond would be welcome as the carrier wants to serve more passengers in that region.

While PAL would also want to grow in the domestic market, Bautista said there is limited capacity to expand operations given congestion in the airport.

PAL is spending about $500 million to $700 million next year to take delivery of five Airbus A321 aircraft as well as two Boeing 777-300ER in line with its plan of expanding its services.

For this year, the carrier has already taken delivery of five new A321 aircraft.

The company is also evaluating a plan to purchase new aircraft for long-haul flights to replace its Airbus A340s which consume more fuel and are costlier to maintain.

- Source:  http://www.philstar.com