San Miguel Corp (SMC) is close to reaching a deal to purchase 49% of Philippine Airlines having completed due diligence on the carrier, according to a report in Reuters. The deal, which is worth approximately USD500 million, would give SMC management control of the airline. Philippine Airlines' current owner Lucio Tan would decrease his stake in the company to 51%. Philippine Airlines president Jaime Bautista said the talks only involve SMC and Lucio Tan, not the airline itself.
SMC reportedly close to deal to purchase stake in Philippine Airlines
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Southeast Asia Fleet Outlook:
Southeast Asia, along with the Middle East, are the only two regions with as nearly as many aircraft on order as in the active fleet. Southeast Asian airlines currently have nearly 1700 aircraft on order compared to an active fleet of approximately 1800 aircraft.
Southeast Asia aviation outlook: passenger growth accelerates, led by Vietnam, Myanmar and Malaysia
Southeast Asia’s aviation market recorded healthy growth in 2016, with passenger traffic expanding faster than the global average across nearly every country in the region. Six of Southeast Asia’s 10 countries had growth in or near the double digits, led by Vietnam and Myanmar. Seven countries had growth equal to, or higher than, in 2015.
Southeast Asia should continue to experience rapid growth in 2017 and beyond. Vietnam and Myanmar will likely again lead the pack in 2017, joined by Malaysia. The Philippines should experience growth of approximately 10% for the third consecutive year, also putting it towards the top of the pack.
However, overcapacity remains a long term concern, pressuring yields and profitability. The average profit margin of the Southeast Asian airline sector significantly lagged the global average in 2016, and this trend will likely continue in 2017.