MANILA: Struggling Philippine Airlines said Friday it is looking for a new investor to help fund an expansion program that would see Asia’s oldest airline buying more long-haul jets.
“I would prefer an airline with more destinations so we can expand our presence,” newly-installed president Jaime Bautista said.
He added that the company may take another airline, or a company with interests in the aviation sector, as an equity partner.
Under Philippine law a foreign airline may acquire up to 40 percent of a carrier like PAL, Bautista said, while stressing there were no ongoing talks at this point.
“There are names we are looking at, but we are not at liberty to disclose (them) at this time,” he told a news conference.
Bautista said the carrier plans to buy long-haul planes over 10 years — either by converting a previous order for narrow-body aircraft from Airbus into bigger planes or taking up Boeing’s proposal to sell it 777 jets.
PAL is to open new local and international routes over the next three years, including Manila-New York from March 2015, he added.
After struggling with losses amid competition from budget carriers, high fuel costs and a labor dispute, PAL returned to profitability this year, posting a net profit of 1.49 billion pesos ($33 million) in the three months to June.
Lucio Tan, one of the Philippines’ richest men, named Bautista to lead the airline after regaining control of PAL in September, buying out San Miguel Corp’s 49 percent interest in the airline for a reported $1 billion.
Bautista said PAL is reviewing a massive refleeting program initiated by the previous management, which had ordered 64 planes from Airbus for more than $7 billion after San Miguel won management control of the airline in 2012.
The airline’s listed parent PAL Holdings disclosed last month it was “seriously studying” the possibility of deferring aircraft deliveries, complaining that “too many orders” had been made.
PAL will take delivery of 10 Airbus A321s this year and another 10 of the same model in 2016, Bautista said Friday.
Some of the 28 Airbus planes set for delivery after 2016 may be converted to long-haul jets, he said, without giving further details.
“We’ll have to study this very carefully. It’s easy to buy airplanes but difficult to dispose,” he added.
“We will take advantage of the refleeting program to improve our service, reboot costs and hopefully, become a profitable airline.”
PAL will now focus its European operations on its newly-opened London route and add more flights to Honolulu, while scaling down Middle East operations due to lower-than-projected demand, he said.
Its new fuel-efficient Airbus jets will allow PAL to compete better when Southeast Asian nations ease air traffic restrictions next year, he added.
The company will also be “more aggressive” domestically and may reopen its hub in Cebu, the commercial capital of the central Philippines, said Bautista.
Ailing Philippine Airlines, under new management, seeks investor
Ailing Philippine Airlines, under new management, seeks investor
Saudi POS spending jumps 28% in final week of Jan: SAMA
RIYADH: Saudi Arabia’s point-of-sale spending climbed sharply in the final week of January, rising nearly 28 percent from the previous week as consumer outlays increased across almost all sectors.
POS transactions reached SR16 billion ($4.27 billion) in the week ending Jan. 31, up 27.8 percent week on week, according to the Saudi Central Bank. Transaction volumes rose 16.5 percent to 248.8 million, reflecting stronger retail and service activity.
Spending on jewelry saw the biggest uptick at 55.5 percent to SR613.69 million, followed by laundry services which saw a 44.4 percent increase to SR62.83 million.
Expenditure on personal care rose 29.1 percent, while outlays on books and stationery increased 5.1 percent. Hotel spending climbed 7.4 percent to SR377.1 million.
Further gains were recorded across other categories. Spending in pharmacies and medical supplies rose 33.4 percent to SR259.19 million, while medical services increased 13.7 percent to SR515.44 million.
Food and beverage spending surged 38.6 percent to SR2.6 billion, accounting for the largest share of total POS value. Restaurants and cafes followed with a 20.4 percent increase to SR1.81 billion. Apparel and clothing spending rose 35.4 percent to SR1.33 billion, representing the third-largest share during the week.
The Kingdom’s key urban centers mirrored the national surge. Riyadh, which accounted for the largest share of total POS spending, saw a 22 percent rise to SR5.44 billion from SR4.46 billion the previous week. The number of transactions in the capital reached 78.6 million, up 13.8 percent week on week.
In Jeddah, transaction values increased 23.7 percent to SR2.16 billion, while Dammam reported a 22.2 percent rise to SR783.06 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
