Lucio Tan Jr. has been named president of PAL Holdings Inc., the publicly listed operator of flag carrier Philippine Airlines Inc.
Tan is the son of taipan Lucio Tan, the billionaire owner of PAL and a diversified range of assets from property, tobacco and beer companies. He was named PAL Holdings president during a board meeting on Oct. 28.
The younger Tan replaced Gilbert Santa Maria, who joined the group three months ago. Santa Maria remains president and chief operating officer of PAL.
The announcement was viewed by observers as another development in the PAL Group’s ongoing management revamp but the younger Tan told the Inquirer on Tuesday it was “business as usual” at the airline.
“It’s a tough business. Hoping for support from Filipinos,” Tan said in a text message.
PAL spokesperson Cielo Villaluna said the change would allow Santa Maria to focus on PAL’s day-to-day operations while Tan “will handle concerns of the holding company.”
In a statement on Tuesday, PAL Holdings said Santa Maria, who once led some of the world’s biggest business process outsourcing (BPO) firms, presented his 90-day report on PAL and its turnaround plan during the board meeting.
It added that the report was “well-received” by members of the board and Lucio Tan, who sits as chair.
PAL Holdings also announced that Joseph Chua was named director of PAL Holdings. Chua and Johnip G. Cua were also appointed members of the airline’s corporate governance committee.
PAL is seeking to return to profitability by 2020, Tan said last August. The airline is seeking to implement cost-cutting measures while looking for ways to increase revenues and capture more online bookings.
PAL earlier hired Lufthansa Consulting to help with its turnaround.
PAL’s listed operator PAL Holdings lost P4.33 billion in 2018, partly as jet fuel prices rose and competition remained stiff. Losses last year were lower than the P7.33 billion in losses it booked in 2017.
Last February, Japan’s ANA Holdings acquired a 9.5-percent stake in PAL Holdings. —MIGUEL R. CAMUS