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MANILA, Philippines - Philippine Airlines (PAL) expects to return to profitability as early as next year, its new operations chief said on Thursday.
"A year from the time we invested in the company, we are confident PAL will turn around," Ramon Ang, president of PAL and San Miguel Corp. told reporters on the sidelines of the Ginebra San Miguel Inc. annual stockholders meeting.
PAL incurred a comprehensive loss of $33.5 million during the third quarter covering October to December last year, a reversal of the $15.1 million net income in the same period in 2010, because of high fuel costs and a workers’ strike
For its fiscal year ending March 2011, the airline registered a net income of $72.5 million.
Ang also said budget unit Air Philippines Express would be remaned PAL Express.
The airline will acquire 100 aircraft in the next five years, he said.
PAL expects delivery of its third and fourth Boeing 777-300ERs as well as four additional Airbus A320s in preparation for the expansion of its route network.
Last month, San Miguel Equity Investments Inc. entered into investment agreements with Trustmark Holdings Corp. and Zuma Holdings and Management Corp. giving the former a minority stake in PAL and AirPhil.
Trustmark and Zuma are majority owned by Lucio Tan.
Ang said the new investment - $500 million for a 49 percent stake in the carriers - will allow the two airlines to modernize their fleet.
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