PAL New Management

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With the 49% stake acquisition by San Miguel of Philippine Airlines, PAL recently change its management with Ramon Ang as the new president. Lucio Tan still holds a position of the board of PAL. 

source: www.sanmiguel.com.ph

Below is the news from Business World in regards to this management changes at PAL.

Posted on April 20, 2012 07:19:19 PM

PAL Holdings changes announced

THE MANAGEMENT team of PAL Holdings, Inc, the operator of flag carrier Philippine Airlines, has been revamped in the wake of a buy-in by conglomerate San Miguel Corp.

Joining PAL Holding’s board of directors are San Miguel President Ramon S. Ang, Iñigo U. Zobel, former Trade Minister Roberto V. Ongpin, Ferdinand K. Constantino and Aurora T. Calderon.

Mr. Ongpin and Mr. Zobel are major stockholders of San Miguel while Mr. Constantino and Ms. Calderon are currently the chief financial officer and executive vice-president, respectively, of the conglomerate.

Mr. Ang was named the new PAL Holdings president, replacing Jaime J. Bautista who has resigned along with Domingo T. Chua, Wilson T. Young, Juanita Tan Lee and Johnip G. Cua.

Staying on at the board are Chairman Lucio C. Tan, Harry C. Tan, Lucio K. Tan, Jr., Michael G. Tan and Enrique O. Cheng.

New officers appointed during Friday’s board meeting aside from Mr. Ang were Harry C. Tan as treasurer, replacing Mr. Chua; Estelito P. Mendoza as corporate secretary, replacing Ma. Cecilia L. Pesayco who was named assistant corporate secretary along with Irene M. Cipriano; and Daniel L. Ang Tan Chai as the chief finance officer.

 

click here to read full article at www.bworldonline.com

 

 

In my personal opinion the entrance of Ramon Ang could be a good signal for the ailing flag carrier. After last year's trouble with PAL's PALEA and the cap on retirement age issue, Philippine Airlines profitability after a long time of non-generation of profit will soon go end. The competition with JGS's Cebu Pacific will also build a healthy and good airfare price for Filipinos and I hope we Pinoys take advantage of such opportunity.

Though there are lots of skeptics of RSA's entry to PAL I guess it is the best option PAL has to save its business. Let's look forward for a better Philippine Airlines and a better airfare for us Pinoys.

 

Disclaimer: Above opinion is the personal opinion of the  blogger. Please do your due diligence for your personal trades.

My personal analysis: Cebu Air Inc. (CEB)

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source: www.jgsummit.com.ph

Cebu Air Inc. which is commercially known as Cebu Pacific is JG Summit's air transportation  business. 

The company has been around since August 1988 but only listed in the Philippine Stock Exchange via IPO last October 26, 2010. Cebu Pacific has been the leading "Low Cost Carrier" in the Philippines. They started with local flights to famous Philippine destinations and now has flights in the nearby ASEAN countries, China, South Korea, Japan, and Taiwan.

From its IPO level of 125 pesos, CEB has been at the 70 level making this its support level. Though a lot were skeptical about the aviation industry due to rising fuel cost CEB has posted earnings for the past years and still  shows earnings this year to date. News of further expansion with the the additional 4 A320 planes and increase flights to some ASEAN countries come January 2012 has made analysts and investors hopeful in the carriers future. Indications is that its current price level is the best price to get in. 

source: http://investing.businessweek.com

Fundamentally CEB is in good shape. 


Current ratio is at 1.06 signifying CEB's capability to pay currently maturing payables is a good sign for a big company specially in the transportation industry.  A Debt to Equity of 101.51 may be scary but of this Long Term to Debt to Equity is at 89.76 quite manageable level. 


As mentioned earlier even with the rising cost of fuel  last year and first months of 2011 CEB still managed to be a profitable company. With operating cost almost at 50% of revenues curbing expenses is a great task that CEB is able to handle.

source: www.angdabawenyo.com

Competition has become tight with ZestAir(formerly Asian Spirit) and AirPhilExpress(Air Philippines of PAL) penetrating the market. Another issue with CEB is the so many complaints in regards to their service and hidden charges. This is one of the possible downer of CEB's passenger volume. 


A lot of investors who jump in during CEB's IPO at 125 level are either waiting or have given up. Most analyst though believe that CEB might be back at the 92-98 level thus some indicate a buy rating. The 70 level might be the lowest that CEB can get and as for the past 2-3 days with PSEi going up and regaining its 4500 level its not surprising that some are starting to accumulate.


So what are the possible reasons why I see CEB a good buy in the coming months? Lets recap:


- Expansion with 4 new planes and additional local and
  international flights
- Declining fuel price
- PAL problem
- Better business outlook in 2012


and do you remember this?
(this is the rehearsal and actual performance in the aircraft)






But again this is just my opinion; how about you what do you think of Cebu Pacific? Share your thoughts, leave some comments.   

source: http://iceylilo.blogspot.com/