Philippine publicly-listed company San Miguel Corp (SMC) will reportedly take a 49% stake in Philippine Airlines (PAL), according to recent reports.
The reports claimed San Miguel CEO Ramon Ang and PAL Holdings chairman Lucio Tan are just working out “minor details and final touches” on the deal that would mean SMC infusing an estimated $500 million into PAL in the form of an equity infusion. SMC will also be given management control of the airline.
High jet fuel prices and disruptions in operations due to labor issues led to a comprehensive loss of $33.5 million at PAL during the third quarter of its fiscal year, a reversal of the $15.1 million net income it posted in the same period in 2010.
The flag carrier said total revenues slid 3.8% to $386 million from October to December in 2011 vis-à-vis the same period in 2010.
Higher jet fuel costs bumped up total operating expenses by 9% to $419.5 million.
Photo from http://www.philippineairlines.
