PAL looks for strategic investor, taps Morgan Stanley in search

MANILA, Philippines - The national carrier has tapped Morgan Stanley to assist in its search for a strategic investor.

Philippine Airlines (PAL) president and COO Jaime Bautista told reporters it has hired Morgan Stanley as its financial consultant as the carrier looks for a strategic investor to support its expansion plans.

“We’re working with our financial consultant,” he said. 

He said talks with possible investors were ongoing and the carrier was hopeful the partner could be taken in as early as next year. 

PAL is looking for a partner that could help in growing its presence and competing with other global players.

To compete with the likes of Singapore Airlines and Qatar Airways, PAL is working on achieving a five-star rating in five years by improving its services, expanding to more international destinations and increasing its fleet. 

PAL currently has a three-star ranking from Skytrax, an aviation consultancy based in the United Kingdom. 

Earlier this year, PAL acquired six A350-900 aircraft to be used for long-haul flights.

The first A350 is expected to be delivered by 2018 and the carrier is studying four locations in Europe such as Amsterdam in the

Netherlands, Hamburg in Germany, Rome in Italy and Paris in France, to utilize the aircraft.

For this year, PAL is adding seven new aircraft composed of five Airbus 321s and two Boeing 777-300 ERs, to its existing fleet. 

PAL has already taken delivery of two Airbus 321s for this year.

Next year, the carrier will be taking delivery of two Airbus 321 aircraft with new engine options.

PAL currently has more than 70 aircraft and flies to 44 international and 30 domestic destinations.