Talks are ongoing between Philippine Airlines and a potential strategic investor for a possible investment in the country’s flag carrier, its executive said Thursday night.
PAL president and chief operating officer Jaime Bautista confirmed to the reporters the “preliminary talks” with a potential strategic partner, but said “we were not at liberty to give any information.”
He did not disclose the identity of the prospective strategic investor.
PAL, which hired a financial adviser to help select a strategic investor, had planned to get a strategic investor in two years.
In August last year, Bautista said the company was not in a hurry to get a strategic investor because they were focusing on enhancing its valuation.
“I think it will be better for the present shareholders of PAL to make PAL more profitable before talking to a strategic investor, so that the value of the company would be better when we talk to them,” Bautista earlier said.
Bautista said the airline expects to post a higher profit in 2015 compared a year ago.
The airline is set to fly to Saipan by June this year to serve Filipinos working in the island.
Saipan is the latest addition to PAL’s route network, which recently included Doha, Jeddah and Kuwait this year as well as Port Moresby, Cairns, Auckland, Jinjang, and New York last year.
PAL also introduced the newest link to the US mainland via its Cebu-to-Los Angeles service on March 15.
The airline also plans to expand its presence in Europe and is currently studying four areas, such as Amsterdam, in Netherlands; Hamburg in Germany; Rome in Italy; and Paris, France.
PAL earlier signed a deal with Airbus to acquire six A350-900 jets worth $1.8 billion, with an option to buy six others to support its long-haul operations.
PAL plans to deploy the A350 XWB (extra wide body), which seats more than 300, on new routes to North America and Europe. The first A350 is scheduled to be delivered in 2018.
The flag carrier’s total comprehensive income reached $20.4 million in 2014, breaking a three-year losing streak and setting the airline on a path to sustained growth.
The airline, now wholly-owned by tycoon Lucio Tan after he bought back a 49-percent stake that San Miguel Corp. purchased from him in 2012, posted a comprehensive income of P6.55 billion in the first nine months of 2015, up from P169.1 million in 2014.
PAL Holdings attributed the sharp increase in comprehensive income during the period to strong revenues, which rose 10.8 percent to P81.98 billion from P73.98 billion in 2014.
PAL’s passenger revenues rose 12.5 percent to P68.37 billion in the first nine months of 2015 from P60.78 billion a year earlier.