September 17, 2011
PHILIPPINE Long Distance Telephone Co. (PLDT) has obtained regulatory approval to form an airline company, fueling speculation that the group of Manuel Pangilinan may invest in the country’s flag carrier.
Documents from the Securities and Exchange Commission showed that PLDT received regulatory approval on Thursday to incorporate Pacific Global One Aviation Co. Inc., which has an authorized capital stock of P430 million composed of common and preferred shares worth P400 million and P30 million, respectively.
The primary purpose of the new company is “to carry on, by means of aircraft of every kind or description, the general business of common and/or private carrier, air taxi or character engaged in the transportation for itself and for others, of passengers, mail, merchandise, and freight, and in this connection, to acquire, purchase, lease, construct, own, maintain, operate and dispose of aircraft of every kind and description, for scheduled and non-scheduled flights, for domestic and foreign travel , and also to own, purchase, construct, lease, operate and dispose of hangars, transportation depots, lounge facilities, aircraft service stations and agencies and other objects and services of similar nature which may be necessary, convenient or useful as an auxiliary to aircraft transportation, including the service and repair of aircraft, ground handling, and buying, selling and generally dealing in oils, gasoline, fuel, aircraft accessories and equipment and goods, wares and relate merchandise of every name and description.”
The Philippines’ biggest telecom company subscribed to P155 million payable through cash and property assets consisting of two aircrafts, while Philex Mining Corp., Jubilee Sky Ltd., Metro Pacific Investments Corp., Meralco Powergen Corp. and Metro Pacific Tollways Corp. subscribed to P125-million worth of shares.
Pangilinan chairs PLDT, Philex, MPIC, Manila Electric Co. and MPTC.
PLDT is the country’s biggest telecom company, while Philex is the largest mining firm. MPIC controls the country’s biggest water distributor, while Meralco is the largest electricity retailer. MPTC controls two of the country’s main tollways, the North Luzon Expressway and Subic Clark Tarlac Expressway.
Incorporators of Pacific Global were PLDT President and Chief Executive Napoleon Nazareno, Meralco Chief Operating Officer Oscar Reyes, MPIC President and Chief Executive Jose Ma. Lim, MPTC President and Chief Executive Ramoncito Fernandez, Joseph Ladrido, former Bureau of Internal Revenue Chief Rene Bañez, Christopher Young, Robert Nicholson and Richard Lawrence Beacher.
When asked if he was interested in Philippine Airlines, Pangilinan told reporters on the sidelines of the listing ceremony of Philex Petroleum Corp. that the airline industry was a “difficult business.”
SPi Global, a wholly owned subsidiary of PLDT, is among the service providers of PAL, handling call center reservations for the country’s flag carrier.