No agreement with any investor yet, says PAL

MANILA, Philippines — PAL Holdings Inc., the operator of flag carrier Philippine Airlines, said it has not reached an agreement with any investor following reports that Japan’s All Nippon Airways (ANA) is set to make its entry into the Lucio Tan controlled airline.

“PAL has always been open to the possibility of a strategic investor. As of date, there is no definite agreement between PAL and any investor,” the publicly listed firm told the local bourse yesterday.

PAL president and COO Jaime Bautista said in a briefing earlier this month that the company is set to take in a strategic investor within the first semester, without disclosing its identity.

Bautista yesterday declined to comment on the reports about ANA’s entry.

In its disclosure, however, PAL said its plans to establish itself as a world-class airline would not necessarily involve the entry of any investor.

The airline said was able to improve its rating internationally in 2018 even without the support of an investor.

Bautista earlier said PAL is expected to benefit from the entry of a strategic investor in terms of the partner’s contribution in equity, management, route development or possible membership in an alliance.

He had said the airline could offer maximum of 40 percent stake to any potential foreign investor as allowed under the law.

PAL is “cautiously watchful and hopeful” about returning to profitability this year, as it targets to carry 19 million passengers from 17 million passengers last year.