Brewer San Miguel Corp. is investing $500 million in Philippine Airlines (PAL) and a sister airline for minority stakes, according to Reuters.
PAL, which reported losses of $33.5 million for the quarter ended Dec. 31, had temporarily slashed flight frequencies and restructuring to reduce costs since last fall.
PAL president Jaime Bautista said in a company statement the investment will “help the flag carrier in its re-fleeting program and make the airline more viable and competitive.”
According to Reuters, “under the deal with Tan's Trustmark Holdings, San Miguel will take indirect stakes of 40% in PAL and 49% in its low-cost partner Air Philippines Corp, also known as Air Phil. San Miguel, valued at $6.4 billion, will gain management control of PAL, the country's biggest airline,” Reuters said.
Article Source : ATW Daily News
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