The Philippine Online Chronicles

Business tycoon Lucio Tan has confirmed that the country's flag carrier and Asia's oldest airline is for sale 'at the right price.'

Tan, chairman and chief executive officer of PAL also confirmed that he is in talks with Ramon S. Ang of San Miguel Corporation and Manuel V. Pangilinan of the Philippine Long Distance Telephone Company for the possible sale of the airline company.

Last December, SMC's Ang confirmed in a disclosure to the Philippine Stock Exchange, that the company was invited by Lucio Tan, the CEO and controlling stockholder of PAL Holdings Inc., to participate and assist in the re-fleeting and modernization of PAL.

Malacanang, on the other hand, has welcomed plans Tan to sell the flag carrier, saying the sale will improve the image of the airline company. "We welcome the additional investment of whoever would like to buy PAL because it would mean additional investments to the country,” Palace spokesperson Edwin Lacierda said in a Channelnewsasia report.

"Considering the PAL is our national brand, the additional investments would improve the branding of our national carrier," he added.

According to abs-cbnnews.com “rumors circulating the business community said Ang and Pangilinan were ready to infuse $1 billion to buy part of PAL Holdings, which has been denying buy-in talks since last year.”

The possible venture would enable PAL to complete its refleeting program by 2015. Out of the 36 aircraft currently in the PAL fleet, five are Boeing 747-400s that were purchased during the carrier’s first refleeting program more than two decades ago.

Other than the five B747s, PAL’s fleet also includes two B777-300ER, four Airbus 340-300, eight A330-300, 13 A320-200, and four A320-319.

In September, a labor strike gripped PAL after its employees protested against the company's outsourcing program that laid off 2,600 employees.

Reacting to the possible sale of the company, PAL Employees Association (PALEA) Secretary Bong Palad said it is a welcome development. He said in an interview over ANC, "We're keeping our fingers crossed that the new acquiring party will respect the rule of law. Willing kaming bumalik upang matulungan yung bagong may-ari at ibalik ang nawalang prestihiyo ng PAL sa buong mundo."