Miyerkules, Abril 18, 2012

SMC takeover of PAL beneficial for Philippines


San Miguel Corp. (SMC) President Ramon Ang’s “long love affair with aircraft” will help boost the country’s airline industry, Sen. Serge Osmeña said recently.


SMC is set to take control of Philippine Airlines (PAL), a scenario which will make Ang the president of the flag carrier.

Osmeña said that Ang’s entry into PAL will help the flag carrier become more globally competitive and revert the country’s air sector back to Category one under the ratings of the Federal Aviation Administration of the United States.

“Ramon Ang has had a long love affair with aircraft and his entry into the industry will help bring our air sector back to Category one,” Osmeña told The Manila Times.

Ang, also the chief operating officer of SMC, has confirmed that he will be taking over management control of the country’s flag carrier.

He will be replacing Jaime Bautista, who will likely remain a member of the PAL board and parent company PAL Holdings. While business tycoon Lucio Tan will still be PAL chairman, Ang will also sit in the board of the two companies.

Osmeña, who is the chairman of the Senate committee on Banks, Financial Institutions and Currencies, expressed belief that Ang’s takeover of the flag carrier “will be beneficial to PAL and the public.”

To be recalled, Ang and Tan signed investment agreements last April 3 that will result in the issuance of new shares to SMC for a stake in PAL and low-cost partner Air Philippines Corp. (Air Phil).

Under the said agreement, the SMC group will infuse $500 million for a 49-percent stake in PAL and in turn, an assumption of management control.

The holding companies of PAL and Air Phil—Trustmark Holdings Corp. (Trustmark) and Zuma Holdings and Management Corp. (Zuma)—will issue new shares to San Miguel Equity Investments Inc., a wholly-owned subsidiary of SMC.

Osmeña said that with the infusion of more capital, PAL’s service will definitely improve and that the riding public will benefit from it.

“The larger the capital made available, the more planes will be deployed and the more flights the riding public will enjoy,” he added.

Ang also said that he will be implementing a number of changes aimed at improving the service of the airline company. 

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