SMC Enters Aircraft Leasing Business

To Support Trans-continental PAL Fleet

18 September 2013

Southeast Asia's largest conglomerate San Miguel Corporation opens an off-shore aircraft-leasing company to support the long haul fleet requirement of Philippine Airlines.

San Miguel Leasing plans to put up in its book an aircraft order for four Boeing 777-300ER, ten 777-900s and ten Airbus A350-900's aircraft from both manufacturers.

SMC President Ramon S. Ang said the Cayman-based company has market capitalization of 1 billion US dollars. 

Initial investments of $500 million was put up by SMC while the another $500 will come from the undisclosed buyer of Lucio Tan's 51 percent stake at Philippine Airlines. 

SMC admitted earlier that they are in talks with Japan's largest carrier, All Nippon Airways, for a 40% stake. Japanese Company, like Kirin Brewery owns substantial share of SMC shares. The remaining PAL shares is expected to be offered to the stock market.

“We intend to come up with another $500-million equity for the aircraft-leasing company that will be 100-percent owned by PAL,” Ang said during the sidelines of the re-launching of the airline’s flight to Europe.

Meanwhile, Ang said that PAL will lease from Airbus six more A340s over the next five years to cover services to Europe before the new long haul twins from Airbus and Boeing are delivered to them.

PAL will start Manila - London route on November 4 after 15 years of absence. The airline last flew to London Heathrow in 1998.