Lucio Tan willing to sell PAL if 'price is right'

MANILA, Philippines - Taipan Lucio Tan said he is willing to sell local carrier Philippine Airlines (PAL) to San Miguel Corp. president Ramon Ang or other buyers at the right price.

“Everything is for sale if the price is right,” Tan told reporters on Friday night on the sidelines of the Bangko Sentral ng Pilipinas’ 2011 Bankers’ Night held at the Fort San Antonio Abad in Manila.

The STAR last week reported that Ang is interested in PAL as he wants to get into the airline business.

In a Jan. 13 disclosure by PAL Holdings, the listed firm that owns 85 percent of PAL confirmed that the management of the local carrier is in talks with potential investors or white knights.

“Upon inquiry from the President of Philippine Airlines, Mr. Jaime Bautista, the latter neither confirmed nor denied any serious discussion with Mr. Ramon Ang on the purchase of 40 percent of Philippine Airlines, saying that any alleged talk with any party are all exploratory in nature,” PAL Holdings’ corporate secretary Ma. Cecilia Pesayco wrote in the disclosure.

When asked to confirm if Ang made an offer for PAL, Tan said he was not aware of it. “I did not hear that. Nobody told me,” Tan said.

The airline has been incurring losses due to stiff competition from local and foreign budget airlines and the spike in fuel prices.

The 70-year old airline, owned by Tan, has incurred losses of roughly $300 million from 2008 to 2010.

It has also been unable to deploy its new aircraft to profitable routes, such as the US and Europe, due to the inclusion of the Philippines in the safety blacklists of these destinations’ respective aviation bodies.

PAL has also put in place cost-cutting measures that involved adjusting the retirement age of its airline crewmembers and reducing the benefits. These adjustments have led to legal battles with its labor unions.