Philippine Airlines gets new investor

PAL may embark on a fleet renewal worth over US$500 million following an investment by San Miguel Corp.

fleet renewal investment PAL Philippine Airlines Ramon Ang re-fleeting San Miguel

Philippine Airlines (PAL) may spend up to US$1 billion for a re-fleeting to boost its competitiveness after a deal last week in which conglomerate San Miguel will become a substantial investor. The re-fleeting would cost at least US$500 million to as much as US$1 billion, the Philippine Daily Inquirer quoted San Miguel president Ramon Ang as saying.

San Miguel, the country’s most diverse conglomerate, announced last week it would buy minority stakes worth a total US$500 million in the ailing flag carrier PAL and a sister airline, Air Philippines, with the deal giving San Miguel management control of the two airlines.