Foreign firms interested in deals with PAL; SMC not buying airline—Ramon Ang

MANILA, Philippines—National flag carrier Philippine Airlines (PAL) is not for sale, but is in talks with foreign airline companies only for a possible partnership, according to San Miguel Corp. president Ramon S. Ang.

Ang—who described himself as a “very close” friend of the Tan family, specifically that of tycoon Lucio Tan—disclosed on Tuesday, that some “famous” foreign airline companies have expressed interest in having a partnership with PAL.

“They may agree for anybody or a foreign airline to join them, but that’s just it. I don’t believe Tan will sell PAL,” Ang said, further noting a tycoon like Tan “is awash with cash so he does not really need to look for investors.”

On the same note, Ang also quashed rumors that San Miguel would acquire PAL, stressing that his interest in the company has been personal and based on his friendship with the Tan family.

“I am interested in aviation and the Tan family is a very good friend of mine. We often talk about PAL, so whatever way I can do to help him, I’m going to do it,” Ang said.

“There are no talks of acquisition. Right now, I am talking to Tan about PAL—brainstorming for ideas on how to help him, that’s it. By the way, Lucio Tan is a tycoon, he’s super-rich and he does not really need anybody’s money,” Ang explained.

“But he needs more ideas and help to come up with better solutions and better ways of running the company… I’m talking with them on ways to further improve the company’s operations,” Ang added.

Ang also said that he would be open to helping Tan in facilitating possible deals with foreign airline companies. He, however, declined to cite more specific details as the interested companies have been talking directly to Tan.

PAL is currently in the midst of a restructuring, reported to be vital to the company’s long-term survival. Streamlining its operations is believed to help the local firm compete with better-funded foreign carriers.

At present, PAL is the country’s second-largest airline, trailing behind the Gokongwei-led Cebu Pacific. PAL’s international operations, however, are so far unrivaled by any other local carrier.