PAL appoints foreigner president to oversee global expansion

Philippine Airlines [PAL 4.56, down 0.9%; 82% avgVol] [link] appointed Richard Nuttall as its new president, effective May 29. Mr. Nuttall is a British national with extensive airline industry experience and a reputation for being a “turnaround” specialist. According to PAL, Mr. Nuttall’s appointment demonstrates PAL’s “commitment to strengthening its leadership team and a bolder push in the international market.” Mr. Nuttall replaces Stanley Ng, who PAL said will “take on new responsibilities within the Philippine Airlines Group”, starting with his role as Vice President of PAL Holdings.

MB bottom-line:  PAL is struggling under the realities of the airline industry. Its profitability is in decline and its stock price is trading at levels that we haven’t seen since 2006. PAL’s charts over the past six months show a period of extraordinary volatility, with the stock’s price rising and falling 10-20% several times. For the benefit of Philippine consumers, I hope that Mr. Nuttall’s tenure is successful. We all gain with robust competition in this space. 

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