For sale or not for sale?

Lucio Tan

These days the local press is full of PAL stories. Is PAL (Philippine Airlines) for sale or not for sale?

A few days ago, Philippines broadcaster (in American hands) announced: Lucio Tan confirms PAL for sale. 

Today,  Joey de Guzman, PAL’s vice president for corporate communications said that the pronouncements made by PAL chair Lucio Tan that the airline company is for sale “at the right price” should not be taken at its face value.

Lucio Tan Lucio Tan

Lucio Tan, chairman and chief executive officer of PAL, acknowledged he was talking to the top executives of conglomerate San Miguel Corp. and Philippine Long Distance Telephone Co. (PLDT) for the possible sale of the struggling flagship carrier. “Both are my friends,” Tan said in an interview with reporters on Friday, during the annual reception of the Bangko Sentral ng Pilipinas for the banking community. 


Strange! The Philippine’s airlines hope at this very moment that the FAA audit on CAAP will be OK. If yes, then the worldwide markets would again be open to them. And just at this moment rumors go to press that one of the leading airlines is for sale. Is there somewhere unpublished insider information? The stock exchange will speak a clear language Monday morning or next month maybe, when the FAA audit report will be published.   

Or is it the settlement of the NAIA-3 dispute that makes thin Mr. Tan that Cebu Pacific Air will outperform PAL and the shares may fall?

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1 Response

  1. FOREST says:

    In my opinion, PAL shot themselves out of the sky by outsourcing their key services to agencies, making those experienced employees who stayed on accept 40% salary cuts. Up to that time, PAL represented a higher quality alternative to Cebu Pacific, which seems to employ mostly kids. Now they have lowered themselves to the same level, as service has gone done 40% to match the salary cuts. This at a time when some passengers are getting tired of the deceptive advertising of promos by Cebu Pacific and the odd hours of many of their flights. PAL has improved greatly in the last ten years. I think if they had continued presenting themselves as a full service, on time line, and improved their sometimes faulty reservations website, they could have competed well with Cebu Pacific.
    As it is, the flying customer now has a choice between Jollybee and MacDonald’s.

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