The owners of legacy carrier Philippine Airlines (PAL) have yet to finalize the terms of their buyback transaction.
In separate disclosures, San Miguel Corp. (SMC) and PAL Holdings Inc. said their two subsidiaries are still locked in a discussion on their equity in the airline operator.
San Miguel Equity Investments Inc. and the group of billionaire Lucio C. Tan “have not signed a definite agreement in regard to the disposition of equity interests in Philippine Airlines or Air Philippines Corp.,” the filings read, clarifying news items that quoted sources as saying that the buyback transaction is already a “done deal.”
Recently, the flag carrier’s management has been shaken by the announcement of a potential buyout by its majority shareholder, Tan, who owns 51-percent of the airline operator.
Its partner, diversified conglomerate SMC, holds the remaining 49 percent of the holding company. The food-to-infrastructure firm bought its minority stake from Tan in 2012 for $500 million.
No party has since divulged the reason for the buyout, which is expected to be completed this quarter.
PAL Holdings successfully dished out an income backflip, after it posted a net profit of P1.49 billion in the second quarter of 2014 from a net loss of P1.08 billion in the same three-month period in 2013.
In the same comparative periods, revenues of the airline operator rose by 47.4 percent to P27.30 billion from P18.52 billion while operating expenses climbed by a slower P31 percent to P6.04 billion from P19.47 billion.
The firm attributed the growth in earnings last quarter to the favorable passenger revenue performance during the said period, driven mainly by the introduction of new routes such as London, Abu Dhabi, Damman, Riyadh, Canton and Haneda in Japan.
The recuperating financial health of the firm proved that the forecast of PAL President and COO Ramon S. Ang was true: that the airline would be back in the black after three years of bleeding.
As of end-June, its fleet is composed of 85 aircraft composed of six Boeing 777-300ER, four Boeing 747-400, five Bombardier DHC 8-400, four Bombardier DHC 8-300, 10 Airbus A340-300, 18 Airbus A330-300, seven A321-231, 28 Airbus A320-200 and three Airbus A319-100.