Philippine Airlines remaining stake to continue to remain with Tan

Philippine Airlines recently indicated its remaining stake will continue to remain with the family of Taipan Lucio Tan following offloading a portion of its stake to a Filipino buyer.

Tan recently ceded management control of Philippine Airlines to diversifying conglomerate San Miguel Corp. 

Philippine Airlines flights had been running into losses for quite some years and the Tan was looking out for options to sell stakes in the airline to investors to restructure the airline and offset the losses.

Michael Tan, son of Philippine’s second wealthiest man, said that his family is not ready to sell the remaining stake in the airline and would rather prefer to keep it with them.

Currently, the Tans hold a 51 percent indirect stake in Philippine Airlines and budget sister carrier Air Philippines after unloading 49 percent to San Miguel.

The new investment is expected to be used to strengthen the operations of Philippine Airlines, which has been facing losses due to increasing jet fuel costs, labor problems, and stiff competition from low-cost rivals.