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PAL looks for strategic investor and eyes an alliance

October 30, 2015 Aviation, Headline News No Comments Email Email

egtmedia59Philippine Airlines (PAL) is seeking a strategic investor as it looks to build its international network, join an airline alliance, and expand its long-haul fleet.

Since resuming leadership of PAL last year, president and chief operating officer Jaime Bautista has undertaken a complete review of the carrier’s route network. He has revised the fleet plan and deferred Airbus orders.

Now PAL has returned to profit, Bautista’s next move will be to  acquire new long-range aircraft to replace the ageing A340 fleet, the Philippine Flight Network reports.http://www.exoticvoyages.com/

The report said Bautista was seeking a new strategic partner to help fund expansion, “which will also pave the way for the carrier to enter a global airline alliance”.

“PAL Holdings is controlled by the Lucio Tan Group so we’re looking for a possible strategic partner that could help management,” Bautista said. Joining the right airline alliance would increase the carrier’s value, he added.

Philippine law allows foreigners to own up to 40% of PAL. Bautista said the ideal partner would be an airline with a complimentary route network.

In a 2014 report, the Centre for Asia Pacific Aviation (CAPA) noted that an investment by a Middle Eastern carrier, such as Etihad, could work. Another possibility is a US-based carrier.

In the meantime, Bautista’s priority is to improve service aboard PAL.

“I want PAL to be a five-star airline, with good service from the time they buy their ticket to the time they get their baggage from the carousel,” he says.

Written by Peter Needham

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