FLAG CARRIER Philippine Airlines (PAL) is still looking for a new President to pilot its operations.
An unimpeachable source shared with this paper, “Capt. Stanley [Ng] will be OIC while PAL is looking for a very good/qualified CEO. His appointment was made so Gilbert [Santa Maria] can leave ASAP.”The appointment of an officer-in-charge, instead of a President and COO, sends the wrong signal to investors who might see in it a sense of uncertainty as to the company’s future, according to financial analyst Astro del Castillo.
In a news statement on Monday, PAL management announced the appointment of Capt. Stanley K. Ng as the carrier’s new president and COO “in an Acting or Officer-in-Charge capacity,” replacing Gilbert F. Santa Maria, whose contract ended also on Monday.
Del Castillo told the BusinessMirror, “This OIC appointment sends the wrong signal to creditors especially since PAL just exited from Chapter 11 bankruptcy. It will only add more questions about PAL moving forward, on what direction it will take.”
However, a former PAL official explained that, “As I understand it, there is an internal process for choosing the president, which will have to be followed. That’s why Ng is OIC in the meantime.” The source, who requested anonymity, added that Santa Maria also went through an internal process prior to the announcement of his taking over at PAL on July 29, 2019.
Del Castillo expressed hope “the [replacement] will be as good as the previous president (Santa Maria). He was aggressive in fighting for the industry, not just for PAL, especially during this pandemic.” He added that Santa Maria “tried to professionalize the airline,” which may have ruffled a few feathers. “When you try to implement changes, you are likely to step on some people’s toes,” he said, by way of commenting on talk that some people in management and among the staff did not like Santa Maria.
He predicted investors would likely “play it safe instead of putting more money in PAL,” although he declined to recommend a “hold” or “sell” on the airline’s shares under listed holding firm PAL Holdings Inc. Shares of PAL were last traded on June 16, 2021, closing at P6.05 per share.
PAL spokesperson Cielo Villaluna failed to respond to a question of why Ng was appointed only as OIC.
Ng described as competent
Former PAL officials and industry sources were largely pleased by the announcement of Ng, husband to Lilibeth Tan, also a pilot at the carrier and a daughter of tycoon and PAL chairman Lucio Tan. Her mother is Evelyn, whose family owns Banner Plasticard. Ng and Lilibeth met in flight school, according to this paper’s sources.
“Lilibeth is a very nice lady. I like this tandem of Stanley and Lilibeth,” said one former PAL executive who declined to be identified.
The source advised Ng to immediately appoint key officials in the carrier to help him frame its direction and policies. “He will need a strong CFO, head of commercial group, and head of planning and strategy,” noting that Santa Maria “appointed a young head of the commercial group with no airline experience. His head of planning also had no airline experience, just like him.” Prior to his work at PAL, Santa Maria worked in the business process outsourcing industry.
The source added, “Ng needs a cohesive Board of Directors who will give guidance and direction.”
Meanwhile, the former PAL official who explained the company’s internal process for choosing the president by way of rationalizing the OIC nature of the appointment, said that while he could not speak to family dynamics between Ng/Lilibeth and the older children of the PAL chairman, “What I know is Stanley is competent, familiar with airport operations, low key, but mahusay.”
Santa Maria shepherded PAL through one of its toughest challenges as global Covid-19 travel restrictions expanded its losses. It filed for Chapter 11 Bankruptcy on September 3, 2021, and exited it on December 31, 2022, wiping out some $2 billion in debts. Its restructuring plan includes the reduction of its fleet and a commitment to infuse $505 million in new capital by the Tan family. Prior to its bankruptcy proceedings, the carrier already cut its work force and reduced frequencies along traditional routes.