Tan Jr assumes more powerful role in PAL

MANILA, Philippines — A new chapter has opened in the flag carrier’s reorganization saga.

The new round of reorganization at Philippine Airlines will give Lucio Tan’s son and namesake, PAL vice chairman Lucio “Bong” Tan Jr., a more powerful role in the country’s flag carrier.

The younger Tan is now seen to make key decisions at PAL, with other PAL officials including his sister Vivienne expected to report to him.

Vivienne’s earlier positions at PAL – executive vice president for treasury and chief administrative officer –  have been abolished. She was instead appointed as head of audit.

“It was the chairman (Lucio Tan), Mrs. Carmen Tan, the vice chairman and the Corporate Governance Committee who decided on this,” Bong Tan told The STAR yesterday.

“Ms. Vivienne K. Tan is appointed head of audit. She reports to the vice chairman, Mr. Lucio K. Tan Jr. The positions of EVP-Treasury and chief administrative officer are both abolished,” the taipan said in an Aug. 27 letter to the PAL board of directors.

Juanita Tan Lee, meanwhile,  was appointed corporate treasurer of PAL, while Alvin Limqueco shall report to chief financial officer Maria Celeste Mutuc and to the treasurer.

Russel Jao, who recently rejoined PAL as chief advisor to the chief executive, has been terminated as PAL’s board sees the position “no longer necessary.”

“The position of Mr. Russel Jao is no longer necessary. Hence, his services are terminated,” the letter said.

In a separate disclosure to the Philippine Stock Exchange yesterday, PAL Holdings Inc., the parent firm, said Lee was appointed treasurer of PAL Holdings, PAL and Air Philippines Corp.

Lee replaces Vivienne Tan as treasurer of PAL Holdings. Vivienne was elected treasurer of PAL Holdings in May.

Tan’s letter  was endorsed by the PAL board’s Corporate Governance Committee led by former Bangko Sentral ng Pilipinas governor Amando Tetangco Jr., Gregorio Yu, Johnip Cua, Samuel Uy, Cirilo Noel and Bong Tan.

Aside from the reorganization, PAL’s board  also directed  the company to immediately engage Lufthansa Consultants, a group which has been successful in turning airlines around.

PAL is currently undergoing a transition period as well as a reorganization following the retirement of former PAL president and chief operating officer Jaime Bautista.

The airline reported a total comprehensive loss of P3.01 billion in the first semester, a 355-percent jump from last year’s loss of P661.56 million. 

Bong Tan earlier said the airline would return to profitability next year instead of this year.