Philippines Airlines eyes PNG market

Philippines Airlines Inc (PAL), the country’s flag carrier is looking at mounting flights to Papua New Guinea to accommodate the growing number of passengers, The Philippines Star reported last week.

The newspaper reported that PAL has filed with the Civil Aeronautics Board an application for re-allocation of additional entitlements on the Manila- Port Moresby from the unutilised seat entitlements previously allocated to budget airline Cebu Air Inc. (Cebu Pacific).

The Tan Group is crafting a strategic plan that would pave the way for the entry of a foreign strategic partner into PAL within the next three years after successfully retaking back the national flag carrier from diversified conglomerate San Miguel Corp (SMC).

PAL president and chief operating officer Jaime Bautista earlier said the Tan Group is looking at taking in a strategic partner of up to 40 per cent of PAL over the medium term or within two to three years. To prepare for the entry of strategic partner, Bautista said PAL would finalise a short term plan including the review of the airline’s fleet after SMC undertook a massive refleerting program after it bought into PAL through San Miguel Equity Investments Inc. in April 2012.

Then PAL president and chief operating officer Ramon S. Ang entered into two separate agreements worth close to $10 billion (K25.7 billion)for the acquisition of 65 brand new Airbus aircraft.