Philippine Airlines has revived a plan to take strategic investors who can support its expansion in Europe and other international markets.
“We are considering some [potential strategic investors],” PAL president and chief operating officer Jaime Bautista said, adding the company tapped a financial adviser to seek new investors.
“For example, we want to have more passengers, let’s say in Europe. We need to have maybe partners in Europe who can carry passengers of PAL from London, beyond. They can invest a small amount, but they will help us to carry our passengers to other destinations,” Bautista said. PAL flies between Manila and London and has entitlements to Germany, Paris, Frankfurt, Spain and Amsterdam.
“The loads are good and improving. The load factor is now at 70 percent,” Bautista said, referring to the London flights.
Bautista said PAL was talking to “companies that will help us grow our international market.”
Bautista, however, said the company was not in a hurry to get potential investors.
“There’s no rush, but of course it will be good for the airline if there is a strategic investor as we expand, take delivery of more airplanes and as we compete more in Asia, US and Europe,” he said.
PAL is spending $500 million to acquire seven brand-new aircraft next year as part of a re-fleeting program.
Bautista said he expected to take delivery of five Airbus 321s and two Boeing 777-300s next year. The aircraft would be used for PAL’s regional and long-haul destinations.
The airline, which is aggressively expanding fights to international destinations, plans to fly to Port Moresby in October and Cairns, Australia and Auckland, New Zealand on Dec. 2, 2015.
PAL’s parent firm, PAL Holdings Inc., earlier reported a consolidated comprehensive income of P5.94 billion in the January-June period, up 1,500 percent from just P362.4 million year-on-year.
PAL Holdings’ comprehensive income rose 49 percent in the second quarter to P2.16 billion from P1.45 billion a year ago.
Total revenues in the first half rose 14 percent to P55.95 billion from P48.95 billion.
Tycoon Lucio Tan last year bought back a 49-percent stake in PAL that San Miguel Corp. purchased in 2012.