MacroAsia to triple capex this year
Lucio Tan’s MacroAsia Corp. said capital spending would almost triple in 2018 to support its core aviation support businesses.
The company, led by CEO Joseph Chua, will see capital expenditures this year jump to P2.6 billion from P905 million last year, briefing materials from the company showed.
The spending will help support profit growth of at least 20 percent in 2018. MacroAsia recently disclosed that net income in 2017 jumped 146 percent to P1.1 billion.
The company also wants to expand its airline catering business and airport ground handling business, given the void left by the nonrenewal of the contracts with Miascor Aviation Services, the country’s biggest independent ground handling company.
Much of MacroAsia’s business comes from aircraft maintenance, repair and overhaul services via Lufthansa Technik Philippines, where the company owns a 49-percent stake.
LTP services the fleet of Philippine Airlines apart from global airlines such as the Airbus A380s of British Airways and Korean Air. The venture booked a net income of $37.5 million last year, up 76 percent.
Its catering business is also growing, having increased revenues by 7 percent to P1.5 billion last year.
The company also wants a bigger role for MacroAsia Airport Services Corp., its ground-handling unit that controls about 17 percent of the market at Manila’s Ninoy Aquino International Airport.
The wholly owned subsidiary is looking at new opportunities ever since President Duterte ordered the nonrenewal of Miascor’s contract following a luggage pilferage incident involving a few of the company’s employees.
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.