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PAL Confirms Long Haul Expansion

Looks For New Airline President To Stir Airline


25 June 2019

Philippine Airlines (PAL) Board of Directors has approved the retirement of Jaime J. Bautista as PAL president and chief operating officer, to take effect on June 30 but denied the appointment of PAL Executive Vice President/Treasurer and Chief Administrative Officer Vivienne K. Tan to replace him, PAL statement said Monday.

Ms. Tan instead is directed to work closely with Bautista for a smooth and orderly transition of management until a new President and COO is appointed, the PAL statement said.

The Board has decided to form a search committee to hire a new president and COO, according to PAL Vice Chairman Lucio “Bong” Tan Jr. who authored such proposal and carried by the board.

PAL Board said they need a “professional manager” to steer the airline to new heights because “it has 98 planes and it has a lot of long-range destinations planned.”

PAL Board of Directors consisted of Lucio C. Tan - Chairman and Chief Executive Officer, Lucio "Bong" K. Tan Jr. - Vice Chairman, Jaime J. Bautista - President and Chief Operating Officer, Rowena Tan-Chua, Atty. Florentino Herrera III, Atty. Estelito Mendoza, Cirilo P. Noel, Carmen K. Tan, Michael G. Tan, Ryuhei Maeda (ANA), Johnip G. Cua, Justice Manuel Lazaro, Amando M. Tetangco, Jr., Samuel C. Uy, and Gregorio T. Yu.

According to the Board, the next PAL President should be a Filipino who “has experienced in management, preferably in the airline industry.”

Tan Jr.’s recommendation to look outside the airline for a new president is not a surprise. A source within management explained that Tan Jr. is a “protégé of Bautista and Wilson Young, chairman of Victorias Milling, a company also owned by Tan. They were tasked by Lucio Sr. to train Bong to run the airline and the milling company. Bong is closer to them than to Vivienne.”

Apparently, there is a family rift between the two siblings and some management decisions are casualties of the squabble which prompted Bautista to exit the company much earlier.

The decision to hire professional manager is designed to shield the airline from any rumored family turmoil.”

Among those at Monday’s board meeting were tycoon Lucio Tan, the siblings Vivienne and Bong, the elder Tan’s longtime lawyer Estelito P. Mendoza, Lucio Tan Group President Michael G. Tan; Ryuhei Maeda, representing All Nippon Airways; lawyer Florentino Herrera III, independent directors Gregorio T. Yu, Amando Tetangco Jr., and Johnip Cua.

11 comments:

  1. Can't Atty. Estelito Mendoza take over? hehehe. He's a legend in the Philippine legal world. He has management experience afterall, being a member of the board of PNB, SMC, Petron and Meralco. And he was able to defend PAL in the controversial flip flopping labor case by FASAP. Although very sad that he is being judged as being in the wrong side of history; being SolGen from 1972-1986, defended the 1973 Constitution in the SC which paved the way for Marcos to consolidate power, got Gloria Arroyo and Bong Revilla acquitted, Enrile on bail, and is a lawyer of Imelda Marcos as well. I bet she will also be acquitted by the SC. Although he is not perfect, because he was not able to acquit Erap of plunder and perjury.

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    1. Do you even realize how old Atty. Mendoza is already?? hahaha! The world is changing and young blood is needed in an airline attempting to make it to 5-stars and better profitability long-term.

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  2. Ten members of the board. Anybody know the vote count to deny Tan's daughter to take over.

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  3. The word ‘confirm’ is never used in the airline industry...

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  4. The title is slightly misleading as Tan Jr. just mentioned they have long-hauls planned but based on recent press releases PAL is shelving their long-haul expansion until they get returns. Once their long-haul operations are stabilized they will resume expanding

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    1. They are shelving plans until they get management in order.

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  5. IMO, for me dapat so Michael Tan, tahimik, mabait pero matalim kung magsalita kumpara kay jr...

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    1. He has made bad business decisions in the past. The latest of which is Mabuhay Maritime Express ferry service between Kalibo jetty port and Boracay island. The boat was very expensive and it's still not making money after one year of operation. It just doesn't make sense to me. Fares are also very expensive and almost comparable to a domestic budget airline flight.

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  6. I was curious if anyone here knew how these worked.. my parents were rebooked by PAL on what seems to be an extra flight out of San Francisco - PR 5115. I don't see it in the timetables but I did notice online they had these extra flights once every now and then with these flight numbers. Is this a result of overbooking?

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    1. if i am correct that is a replacement flight if it start with 5

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