Quantcast
Latest Stories

SMC to invest $500M in plane leasing firm

By

SMC president Ramon S. Ang: New leasing firm 100-percent owned by PAL. AP FILE PHOTO

MANILA, Philippines—Conglomerate San Miguel Corp. plans to invest $500 million in an aircraft-leasing company to support the expansion of Philippine Airlines, SMC president Ramon S. Ang said on Tuesday.

Ang said the investment would be a followup to the initial $500 million that the company had put in the airline, allowing it to own roughly half of the flag carrier. Philippine Airlines’ second major shareholder is the group of tycoon Lucio Tan, who earlier said he was selling his remaining 51-percent stake although a deal has yet to be finalized.

“We intend to come up with another $500-million equity for the aircraft-leasing company that will be 100-percent owned by PAL,” Ang said at the sidelines of the relaunching of the airline’s Manila-to-London route.

Set for Nov. 4, the transcontinental flight will mark PAL’s return to Europe after 15 years of absence. Ang said PAL will fly five times a week to London Heathrow Airport, the main air gateway to the United Kingdom.

Ang also said that PAL was ordering more planes than previously announced.

He said the airline was looking to acquire 71 new aircraft—21 long-range Airbus A330s, 44  medium-range Airbus A321s and six long-range Airbus A340s—over the next five years. The company earlier said it would acquire 65 Airbus aircraft, valued at about $9.5 billion, but that figure did not include the A340s.

After London, Ang said they plan to mount more flights to European cities like Paris, Rome and Italy within the year. Also on the pipeline will be expanded flights to the United States in the event the Philippines finally obtains the coveted upgrade to Category 1 from the US Federal Aviation Administration.

Competition is expected to be tough as carriers based in the Middle East are also expanding aggressively.

“We are expecting them to react. In fact, one lowered the price of their tickets already. But we foresaw that and we are definitely here to stay and we will compete with them,” Ang said.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , Investment , Philippine Airlines (PAL) , plane leasing , Ramon S. Ang , San Miguel Corp. (SMC)

  • upupperclassman

    You should change the picture of Ramon Ang here. He looks much stressed.

  • thrustreverser

    Expect orders for Boeing planes once FAA lifted its Cat 1 restriction

    • Bulagas

      that is the read between the lines agreement…. US Planes for cat restriction elimination :)…

  • Guest

    Expect orders for Boeing planes was Cat 1 is lifted



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Tagle: Christ’s resurrection a message of hope to faithful
  • Aquino vows to intensify anti-corruption drive further
  • Unease in Vatican over cardinal’s luxury flat—report
  • Nepal calls off search for missing guides on Everest—official
  • Pope’s Easter Message ‘Urbi et Orbi’
  • Sports

  • Rain or Shine grabs No.4, sends Ginebra to 8th
  • Red-hot Alaska rips injury-depleted San Mig Coffee
  • Pacquiao courtesy call to Aquino set for Monday
  • Nick Calathes suspension a reminder of supplement risk
  • Teague scores 28 as Hawks soar past Pacers in Game 1
  • Lifestyle

  • Angono petroglyphs in danger of disappearing
  • Britain’s baby Prince George visits Australian zoo
  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Entertainment

  • Unmerry mix of attention-calling moves on ‘Mini-Me’ TV tilts
  • Persistence pays off for The 1975
  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Aquino, Obama to tackle US pivot to Asia during state visit
  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Marketplace