July 8, 2013
San Miguel Corporation is in talks with Tokyo-based All Nippon Airways (ANA) and Dubai-based Emirates Airlines (UAE) for a major stake in flag carrier Philippine Airlines (PAL).
“We are now in discussions with ANA and Emirates.” says SMC President Ramon Ang.
Ang said these foreign airlines have expressed interest to invest in PAL and that
SMC was open to taking any of them as a partner.
Lucio Tan has put his 51-percent stake in PAL on the block for SMC which has the option of first refusal in the flag carrier. However, only 40% of the Lucio Tan share would be sold to the foreign carrier due to constitutional limitations imposed on public carriers in the Philippines. The remaining 11% would be floated to the stock market to be taken by private investors.
Decision on the partnership agreement could happen “within this year.”
ANA aims to integrate PAL into its "Multi-Brand Strategy" in Asia, while Emirates aims to make Manila its "Bridge to the Pacific".
SMC has history of partnerships with Japanese firms, particularly with Kirin group, a part of Mitsubishi keiretsuin, holding 20% share of SMC, and Nihon Yamamura Glass Co. Ltd. in glass and packaging business.
Meanwhile, Emirates airline, a subsidiary of The Emirates Group, which is wholly owned by the government of Dubai is the largest airline in the Middle East, where majority of Overseas Filipino Workers are deployed. They also have extensive connections in Europe which PAL expects to service soon.
"Bridge to the Pacific"??
ReplyDeleteBut PAL is denying any association with Emirates regarding possible partnership.
SMC Is fond of tempering stories uttered by its CEO. As between the spokesman and the CEO, we kinda believe the unadulterated statement of someone who definitely has the say to all these things.
ReplyDeleteIt's kinda like the same press release to the PSC telling SMC investors that there were no negotiations with PAL, and look where they are now.
Is PAL trying to merge with an International Airline? Great :)
ReplyDeleteHope EK will be PR's investor. Good thing also that Tan's group is out of PAL for good. It's time for PR to be competitive & not a laggard in the region.
ReplyDeleteEmirates Airlines officially denied that there was talks with PAL. Of course because they are talking with SMC as confirmed by inside sources corroborating the Inquirer report of Doris Dumlao. These sources however while knowledgeable are not authorize to speak.
ReplyDeletepal now can fly to EU! The ban is over
ReplyDeleteMore likely PAL will join Oneworld Alliance anytime soon.
ReplyDeletePAL could end up leaving the alliance like Aer Lingus.
ReplyDeleteIf All Nippon Airways gets that 40% shares, then PAL might end up with Star Alliance instead of Oneworld...
ReplyDeleteIts now clear that ANA would get the entire 40% of PAL, while SMC would retain the 49%, or a total issued shares of 89%. Philippine Airlines reported yesterday that they are floating 10.2% shares to the public.
DeleteThey cannot be because they have already two well known Southeast Asian carriers - Singapore Airlines & Thai.
DeletePAL will join Oneworld in 2015, according to Wikipedia's Oneworld entry.
ReplyDelete