23 January 2014
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| Star Alliance member Air Nippon Airways (ANA) of Japan has agreed to take the minority stake of Philippine Airlines, asia's first airline."We hope to close a deal maybe in the next 30 days," PAL president Ramon S. Ang said at the launch of the elevated expressways project linking northern and southern Metro Manila dubbed as Metro Manila Skyway Stage 3. At stake is the 51% interest of the Lucio Tan group but the sale will involved only 40% interest while the remaining 10% is expected to be sold to the public. |
good news to! hopefully this will be PAL's ticket to *A.
ReplyDeleteThis is good so that PAL can join the star alliance!
ReplyDeletehttp://www.abs-cbnnews.com/business/01/23/14/pal-drops-ana-investment-talks-eyes-code-share-deal this news makes me wonder... oh well.
ReplyDeleteThe headline for this article is incredibly misleading and inappropriate. NO DEAL has been closed between ANA and PAL. Ang simply stated that they are "hoping" to close a deal. But that does not even give an assurance that this is definite. As of now, all we can assume is that a deal may be pending if PAL and ANA can agree to mutual terms...but according to the article above, no deal is going to push through anyway...
ReplyDeleteIt seems that some journalist may have manipulated Ang's original statement or taken it out of context. Here is the full quotation: “We are talking [about] code sharing. We are looking at what we can do together to be able to improve our service. We hope to be able to close the deal within 30 days,” said Ang.
ReplyDeleteWhen Ang was discussing a deal, he was referring to a code-share arrangement, NOT an investment.
PAL drops ANA investment talks, eyes code-share deal
ReplyDeleteWritten by Lenie Lectura
Business Mirror
FLAG carrier Philippine Airlines (PAL) has dropped plans to take in Japanese airline All Nippon Airways (ANA) as an investor in the flag carrier.
“Originally, what ANA wants is an investment but later on many meddled in the talks so the talks on investment were shelved,” said PAL President Ramon S. Ang.
Still, PAL is pursuing a partnership with ANA via a code-share deal.
“We are talking [about] code sharing. We are looking at what we can do together to be able to improve our service. We hope to be able to close the deal within 30 days,” said Ang.
In July last year, San Miguel Corp. (SMC), which holds a 49-percent stake in PAL, admitted it was engaged in preliminary talks with ANA for a possible partnership in the flag carrier.
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http://businessmirror.com.ph/index.php/en/business/companies/26339-pal-drops-ana-investment-talks-eyes-code-share-deal
Star needs to drop either SQ or TG in order to have 2 ASEAN airlines in each alliance. Or else PAL has no choice but to join Oneworld alliance.
ReplyDeleteSMC President Ramon S. Ang confirmed Thursday afternoon that they are still talking with ANA for PAL investments contrary to the reports made by Business Mirror and ABS-CBN. Ang said details of the talk is still withheld due to confidentiality agreements with the Japanese carrier.
ReplyDeleteI really want PAL to join oneworld but since cathay is not so interested with PAL, star alliance would be better :)
ReplyDeleteSounds great news if the transaction will push thru. PAL/ANC has more to gain than to loose under the Star Alliance.
ReplyDeleteI believe all airlines operating soley on a point to point fare, will have a difficulty surviving these hard times in the west, unless they create value added services that they can sell as a package with their tickets. TG succeeded with their hotel investments, because they also have many tourist spots.
Same with cargo, forwarders focusing only on freight, will eventually die or merge, unless they are able to introduce value added services together with freight.
Ramon Ang, I don't know, he is an excellent poker player and keeps his cards only to himself. Who knows, maybe Ang will eventually go into airport operations, tourist hotels, tourist restaurants and facilities that can be built on his properties around the Philippines, part of the "added value services" scheme of things. Its not a bad idea though, because it will also create more employment in the provinces, even for local tourism only at the very least. Maybe foreign tourists will then become the gravy on the pie where big bucks can be made, but later.
You had me at loose :))
DeleteAnyways, correct analysis. It's like Emirates's strategy.
Lucio Tan should also sell his stake in LTP to SMC. He doesn't know how to handle airline business..
DeleteI agree, LTP is currently losing money. More mechanics and support personnel are leaving because of his poor management strategies.
DeleteOn a happier note, I tried booking flight going to ANA for Vancouver and saw that they well use 787 Dreamliner on Manila - Tokyo (Haneda) route :) I think this is second for NAIA after RB, right?
ReplyDeleteActually SMC does not have any idea how to run an airline. The SMC boys in charge of PAL view the airline like the beer business. The losses incurred by PAL are ballooning since SMC took over. And to think RSA bragged before "how hard can it be to run an airline?" Well i guess he is finding out the hard way. There is no direction from the SMC management and they dont seem to know what theyre doing.
ReplyDeleteMaybe they could hire foreigners to take the helm. Other companies like emirates and etihad doea that.
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