Lucio Tan officially reclaimed management control of Philippine Airlines after executing the buyout of the 49-percent stake or $1-B deal held by conglomerate San Miguel Corp on Monday.
PAL’s new general manager Jaime Bautista said they were optimistic for the airline’s future but reminded workers that issues plaguing the airline industry—tense competition and volatile fuel prices—remained key challenges.
“The first step is to go back and review where we stand and plot a new direction,” Bautista said in his speech. “We will also re-evaluate existing programs without reinventing the wheel.”
A memorandum was released by each department in PAL to announce Monday’s “meet and greet” with Tan —who had remained PAL chair throughout SMC’s stint at the helm —at the Philippine National Bank complex in Pasay City.
The Tan group raised around $780 million from a bridge financing from four big local banks, $460 million of which will come from banks led by the family of fellow tycoon Henry Sy, Banco de Oro Unibank and China Banking Corp. while the remainder was funded by PNB and Asia United Bank.
BDO accepted shares in PNB and holding firm LT Group Inc. as underlying collateral for its lending to the Tan group, while China Bank and AUB got LTG shares according to media report.
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