BIZ BUZZ: Rubio retires from Aboitiz, joins MVP Group’s MGen
Perhaps power sector veteran Emmanuel Rubio just does not feel like taking a long vacation. At least, not yet.
This as right after officially retiring as president and chief executive officer of Aboitiz Power Corp., he formally joined the MVP Group as head of Meralco PowerGen Corp., (MGen) the power generation arm of Manila Electric Co. (Meralco), the country’s largest electricity distribution utility.
Rubio retired from the Aboitiz group after turning 60 last week and turned over the reins of the growing company to Danel Aboitiz, son of Aboitiz Equity Ventures chair Enrique Aboitiz and former director and chief commercial and stakeholder engagement officer at AboitizPower.
The younger Aboitiz officially takes over the top post today, July 1, the same day that Rubio—who was president of AboitizPower from January 2020 to June 30 this year—will also begin a new chapter at MGen, replacing Jaime Azurin.
The wholly owned subsidiary of Meralco aims to build a diversified power generation portfolio with 3,000 megawatts of total combined capacity, including 1,000 megawatts in renewable energy.
If there is anybody who can fulfill that objective, it is Rubio.
After all, he did leave AboitizPower stronger than when he found it. Thus he should be able to duplicate that feat in his new home. —Tina Arceo-Dumlao
Aviation groups press case vs MIAA rates
It has been more than a month since aviation groups conveyed to the Department of Transportation (DOTr) their vehement objection to the planned “gargantuan” increase in the fees and charges at the soon-to-be privatized Ninoy Aquino International Airport (Naia), and they are still waiting with bated breath for the final word.
And as they count the hours before the Sept. 14 turnover to the San Miguel-led New Naia Infra Corp., more details of their strong position have been revealed to Biz Buzz.
The Air Carriers Association of the Philippines, Board of Airline Representatives and Airline Operators Council, for example, scored DOTr adviser Asian Development Bank for the “flaws” in its study that fed into formulating the proposed fees and charges, adding that some of the multilateral funding agency’s assumptions were “misleading.”
They also underscored that “the immediate rise in the proposed fees and charges are not reflective of the infrastructure developments as compared to our neighboring peers.”
“Making MNL the 2nd most expensive airport in the region will be detrimental to a majority of the Filipino traveling public at a time when costs throughout are rising,” the groups said in their May 21 letter to Transportation Secretary Jaime Bautista.
The groups emphasized that they do accept “that airport development must be paid for.”
However, consumers will only accept these higher travel fees and charges “if they are matched with tangible improvements in airport capacity and the user experience.”
The DOTr has stoutly defended the planned increases as necessary to complete the vital facility’s rehabilitation and capacity expansion. The exact numbers are not yet final, and will require Cabinet-level approval before they are finally implemented.
But what’s looking definite is that there will be an increase, it is just a question now of how much. —Tina Arceo-Dumlao
Dali in the red
Grocery chain Dali Everyday Grocery, which has been recently branded a “deceptive” retailer by a consumer rights group, has even bigger problems to think about.
A recent financial filing with the Securities and Exchange Commission showed that Dali, which is known for its discount products that appear to be dupes of bigger brands, more than doubled its losses to P1.88 billion last year.
This is despite revenues swelling by 139 percent to P22.31 billion. The filing also showed that operating expenses more than tripled to P3 billion.
It now appears that Dali, which is aptly registered as Hard Discounts Philippines Inc., has much to catch up on to return to profitability.
For its part, Dali said its parent company, Switzerland-based Dali Discount AG, had committed to “provide the company with finance, or procure the provision of such finances, as may be necessary to enable the company to continue to trade.”
Dali’s losses are on top of a show-cause order issued by the Department of Trade and Industry (DTI) following 13 complaints filed by consumer rights group Malayang Konsyumer amid concerns over sanitary regulations and weighing scale issues at its stores.
The DTI is also now “actively investigating” the 82-store grocery chain for allegedly engaging in “deceptive” and “unfair” sales practices.
Will Dali be able to clear these hurdles or are issues expected to mount further? —MEG J. ADONIS
