Philippine Airlines said it secured an approval from the Securities and Exchange and Commission to restructure its equity in preparation for the entry of a new strategic investor.
PAL Holdings, the parent company of the airline, said in a disclosure to the stock exchange, the Securities and Exchange Commission issued a certificate of approval of equity structuring dated Dec. 13.
Following the grant of the request, PAL’s additional paid-in capital of P13.64 billion would be used to fully wipe off its deficit of P13.57 billion as of Dec. 31 last year.
PAL president and chief operating officer Jaime Bautista earlier said the airline was currently in talks with possible investors. The investor is expected to acquire up to 40 percent of the flag carrier.
PAL tapped Morgan Stanley as financial advisor for the transaction. Darwin G. Amojelar
PAL is taking delivery of seven brand new aircraft worth over $550 million in the second half of the year as a part of its fleet expansion and modernization program.
PAL ordered six A350s, with an option for six more. The aircraft is capable of flying non-stop from Manila to New York.
The additional B777-300 ERs will be deployed to the London and North American routes.
PAL earlier posted a net loss of P3.5 billion in January to September, a significant downturn from the P2.96 billion total comprehensive income recognized in the same period last year.
Revenues in the first nine months rose 15.6 percent to P98.63 billion from P85.35 billion a year ago. Passenger revenues rose to P81.96 billion from P71.47 billion, while cargo revenues increased to P6.09 billion from P4.94 billion.
Total expenses grew 27.3 percent to P103.82 billion from P81.55 billion, with the increase in flight frequencies and introduction of new routes.