THE new leadership at pioneering flag carrier Philippine Airlines (PAL) is currently choosing key people who will help in the transition from the administration of President and COO Jaime J. Bautista.
Lucio “Bong” Tan Jr., vice chairman of PAL and younger brother to Vivienne Tan—recently appointed as officer-in-charge of the airline upon the retirement of Bautista—said his sister is “slowly” choosing the people who will help her run the airline.
Siegfred Mison, SVP for Legal, according to a source familiar with the goings-on at the airline, is among those chosen by Vivienne to help her manage the airline. Mison, former Immigration Commissioner, is the son of Salvador Mison, president of Basic Holdings Inc., also a Lucio C. Tan company.
Sources said in the past few months, airline officers identified with Bautista had either been sidelined, let go, or asked to resign. Among them are Ismael Augusto “Nicky” Gozon, SVP Operations; former EVP and treasurer Stewart Lim; VP for Ancillary Business Kevin Hartigan Go, AVP for Corporate Audit Babyruth Chuansu, and Chief Customer Experience Officer Jessica Abaya.
The same sources said the turnover’s handling sparked controversy, even as rumors seemed deliberately floated that a “super audit” supposedly uncovered questionable deals under Bautista’s watch.
This was quickly denied by Tan Jr. in a text message to the BusinessMirror: “Wala naman. (There was none.) He is due for retirement naman few years back pa. We were just delaying it. Age might have caught up and I think he wants to enjoy some time with his family. His cute apo (grandson) is growing up na very fast.”
Tan Jr. stressed, “Jimmy is an honest man. And he has done a great job in PAL, and in all the companies he has joined in the LT Group of Companies. It will be hard to replace such talent.”
During Bautista’s watch, PAL got its hard-earned status as a four-star airline. And, on the day the news broke about Vivienne’s appointment as OIC, Bautista was in Paris receiving on behalf of PAL the prestigious Skytrax award for “Most Improved Airline.” (See “PAL is 2019’s Most Improved Airline in the World—Skytrax,” on the BusinessMirror, June 18, 2019)
Astro del Castillo, managing director of First Grade Finance Inc., a finance and investment company said: “Since PAL is still considered a Lucio Tan-owned company, it is expected that the children take over, and Vivienne has a long experience managing a corporation. I’m sure she will find professional help to give her a better grasp of what can be done for PAL to improve it better, especially since the airline is aggressively expanding.”
Bautista had spent some 26 years with PAL, 12 of which as its president and COO. He is mainly credited with turning around the company from one under rehabilitation by the Securities and Exchange Commission (SEC) to a formidable airline. Lucio Tan is said to have personally prevailed on Bautista to abandon his first retirement and return to PAL in 2014. Like many legacy carriers though, it struggles against the rising cost of aviation fuel and lower fares offered by low-cost carriers. Last year, it posted a net loss of P28 billion, though this is 38 percent lower than the loss in 2017.
Bautista told BusinessMirror late Tuesday evening that he had submitted his application for retirement “last month”. He added, “My retirement will be formally accepted on Monday (June 24) during the board meeting. I will formally retire on June 30, but if the turnover of the office is done earlier, I can just take a terminal leave.”
On Thursday, Bautista was all smiles, seated beside Vivienne and Mison at a farewell lunch tendered in his honor. A photo of the moment was captured by Mison and posted on his Facebook account.