Logan Denies Buying Tan Shares

10 July 2014

Etihad Airways’ President and Chief Executive Officer James Hogan has denied reports that they will buy into Philippine Airlines following its recent acquisition last week of 49% share of Alitalia, the national airline of Italy.

Hogan was in Manila to launch the landmark partnership agreement with Philippine Airlines.

Mr. Hogan emphasized that this partnership with PAL was merely strategic, but on long-term relationship, to improve both revenues and costs.

He clarified, however, that deal does not mean gaining a stake at the Philippine flag carrier.

Etihad is in the process of formalizing the acquisition of Alitalia within weeks  that would be its eighth airline investment globally following Darwin Airline (34%), Air Serbia (49%), Air Seychelles (40%), Air Berlin (29.21%), Jet Airways of India (24%), Virgin Australia (19.9%), and Aer Lingus of Ireland (4.01%).

In a recent interview Monday with the Wall Street Journal, Philippine Airlines President and Chief Operating Officer Ramon Ang declined to identify the foreign airline or say whether it would buy all or part of LT Group's 51% share. 

Mr. Ang said the deal would be completed by the end of the year.

The San Miguel Corporation President which owns 49% and management control of Philippine Airlines said the new partner is capable of expanding the airline's international network.

Japan's All Nippon Airways has repeatedly been linked with Philippine Airlines over the last two years as it seeks to expand overseas. ANA General Manager Hideaki Izumi confirmed to reporters in March that discussions about a tie-up with Philippine Airlines were taking place but declined to answer further questions.

Since assuming control of the flag carrier, Ang has overseen an upgrade of the carrier's fleet, added new long-haul routes to Europe and the U.S., and reduced losses.

Ang said at an Annual Shareholders' meeting in June that all of the airline's long-haul routes, with the exception of recently added flights to London, are now profitable, and that the airline has started turning a profit in April.

No comments:

Post a Comment