Philippine Airlines, which recently took in the San Miguel Corp as a new investor, is seen investing as much as $1 billion for a fleet modernization program that will make the storied flag carrier more competitive.
Ramon S. Ang, president of SMC who signed a deal last week to acquire 49 percent each of PAL Holdings and Air Philippines Corp., said the conglomerate welcomed “the opportunity to participate in the refleeting and modernization plans of the two airlines.”
In a text message, Ang said the fleet modernization would cost at least $500 million to as much as $1 billion.
The $500-million minimum requirement is what SMC is infusing into several holding firms that will result in its equity investment in PAL and AirPhil, where the conglomerate is expected to exercise management control even if the majority stake would remain with the group of taipan Lucio Tan.
In a statement jointly issued by the Lucio Tan group and SMC, the two groups said the new partnership would “allow the two airlines to strengthen operations and stay competitive with the implementation of PAL and AirPhil’s fleet modernization program.”
Industry sources explained that because SMC’s entry into PAL and AirPhil would involve the issuance of new shares, new money would flow into the carriers. For capital spending beyond $500 million, the source said the airlines could fund this through debt rather than equity so as not to disrupt the existing capital structure.
http://business.inquirer.net/52951/pal-airphil-set-refleeting-programs
Showing posts with label Airline. Show all posts
Showing posts with label Airline. Show all posts
Monday, April 9, 2012
Monday, October 31, 2011
Stock News 2011: Lufthansa cautious as profit plunges
Image via WikipediaDeutsche Lufthansa AG warned that persisting economic uncertainty is clouding the growth prospects of the aviation industry, but added it doesn't expect the global economy to drift into a renewed recession.
"None of our data suggests there will be a double-dip recession scenario, but the going definitely gets tougher," Chief Financial Officer Stephan Gemkow told a news conference.
The increasingly uncertain economic outlook was already reflected in the company's falling third-quarter profits – although the decline was lower than analysts had expected – and is continuing to depress future bookings, the German flagship airline said.
Previously, Lufthansa had been relatively unaffected by the economic crisis that is gripping the euro zone, but business confidence in Germany and elsewhere in Europe has shown signs of wavering amid concerns that a slowdown may be around the corner.
Still, Lufthansa also reiterated its recently lowered full-year profit guidance, and said it would "initially prepare for slower growth rates in passenger and freight traffic."
In response to the deteriorating economy, Lufthansa pledged to divest loss-making units – such as British Midland Airways, known as bmi – step up cost cutting efforts, adjust passenger capacity expansion plans and boost its low-cost airline offerings.
"The macroeconomic environment--and therefore the strength of demand for the airborne companies in particular – has weakened significantly," Lufthansa said in its third quarter report. "At the same time, the booking prospects for the months ahead have deteriorated substantially," the carrier said.
http://mb.com.ph/node/339556/lufthan
Monday, May 30, 2011
Stock News 2011: Fat attendants taboo on airlines
Image via WikipediaA dispute at Thai Airways over a requirement that flight attendants meet weight and shape standards has sparked a debate over how important appearance is for the job.
Under the weight-loss rules, which the airline believes will help it increase passenger numbers, female attendants have to keep their Body Mass Index (BMI) below 25 points and their waistlines no more than 32 inches, while males must keep their BMI to 27.5 and waistlines to 35 inches.
Over a year ago, staff was given six months to lose the necessary weight and the company organized dietary and fitness advice to help.
Tests this spring saw 41 of the 6,000 flight attendants fail to pass the new standards, resulting in disciplinary proceedings.
Those who failed the tests were shifted to domestic routes while flight attendants unable to comply after a year have been told they will be transferred to ground services.
While the attendants have accused Thai Airways of discrimination and of violating their rights, the company doesn't understand the furore its decision has caused, saying the move was necessary to maintain weight standards.
The attractiveness of its flight attendants gives Thai Airways a competitive advantage over its rivals, said Teerapol Chotechanapibal, vice-president for products and customer services.
http://mb.com.ph/node/320437/fat-attendant
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