Lucio Tan III appointed as president of PAL Holdings

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Lucio Tan III with his grandfather, Lucio Tan. Photo from Philippine Airlines.
  • Lucio Tan III has been appointed as president of PAL Holdings, Inc., the parent firm of Philippine Airlines 
  • Tan III takes over the post from his grandfather, tycoon Lucio C. Tan, who remain as chairman and CEO

Lucio Tan III has been appointed as president of PAL Holdings, Inc. (PHI), the parent firm of Philippine Airlines (PAL), taking over the post from his grandfather, tycoon Lucio Tan.

Lucio Tan remains as chairman and chief executive officer of PHI, the company said in a statement.

“As the newly designated President of PAL Holdings, I am committed to providing stability and upholding the highest level of integrity within the company,” Tan III said.

He added: “I look forward to working closely with the PAL team, under the leadership of its President and COO, Capt. Stanley Ng, to ensure a collaborative and cohesive approach in serving the best interests of our customers. We also aim to safeguard our shareholders’ investments by fostering a culture of transparency, accountability, and long-term value creation.”

Tan III first entered PHI in December 2019 as a director of the company, as well as its subsidiaries, PAL and Air Philippines Corp. In 2021, he was appointed vice president of PHI.

His appointment as president comes as PHI registered a total consolidated operating income of P17 billion in 2022, a turnaround from an operating loss of P4 billion in 2021. It was also the company’s first positive full-year operating income since 2019.

In a virtual annual stockholders’ meeting on May 25, PHI attributed the turnaround to the implementation of PAL’s financial restructuring plan and the increased demand for air travel with the reopening of travel borders.

“I am grateful to our shareholders, our customers, the flying public, for their trust and support. We face major challenges just the same. We need to rebuild our product and our fleet. Philippine Airlines needs to be a stronger competitor and a leader in service and innovation,” Lucio Tan said.

PHI’s consolidated revenues improved by 137% to P139 billion in 2022 from P59 billion in 2021. Passenger traffic also increased by 214% to 9.31 million in 2022 from 2.97 million in 2021.

PAL has inaugurated the Manila-Perth nonstop service and has reopened routes between the Philippines and points in mainland China. On top of an extensive domestic network anchored on its gateway hubs in Manila, Cebu, and Davao, PAL is currently the only airline operating nonstop flights linking the Philippines to the United States and Canada, along with the largest network of flights from Manila to multiple cities in the Middle East, Japan, and Australia.