Lucio Tan to sell majority stake in PAL at the right price

Top-level negotiations are ongoing regarding the sale of a majority stake in flag carrier Philippine Airlines, owner Lucio Tan told reporters in an interview over the weekend.   “If the price is good,” then he is selling, the business tycoon said on the sidelines of Bangko Sentral ng Pilipinas’ annual reception for bankers.   “Some of my friends” are interested in investing in PAL, including corporate tycoons Ramon Ang of San Miguel Corp. and Manuel Pangilinan of Philippine Long Distance Telephone Co., noted Tan, but declined to comment on specific talks with any of the parties involved.   In Malacañang on Monday, presidential spokesperson Edwin Lacierda told reporters that government welcomes such developments regarding PAL.   “We welcome the additional investment of whoever would like to buy PAL, because it would mean additional investments to the country," Lacierda said.   “Considering the PAL is our national brand, the additional investments would improve the branding of our national carrier,” the Palace official added.   Publicly listed PAL Holdings Inc., led by Tan, owns 94 percent of the flag carrier.   Early this month, PAL employees told reporters they have no other information regarding the top-level talks with potential investors.   According to a Reuters report last Dec. 28, San Miguel Corp. has invited Tan to help the flag carrier pursue its refleeting and modernization plans.   “San Miguel, in a disclosure to the stock exchange, confirmed local media reports it was in talks with Tan's PAL Holdings Inc., owner of Asia's oldest airline, but no agreement has been forged yet,” Reuters added.   PAL posted a $39.4-million loss in its fiscal second quarter from July to September 2011 on higher operating expenses, particularly the cost of jet fuel.   The airline projected its average fuel cost at $120 per barrel, but the actual cost was $135 per barrel.   Higher fuel costs and revenue losses as a result of a labor dispute will give the airline another bottom line in the red in its current fiscal year, according to PAL. — VS, GMA News