PAL Appoints New President, Officer-in-Charge Status Might Discourage Investors

On January 31, Philippine Airlines (PAL) announced that it appointed Captain Stanley K. Ng as the new president and chief operating officer in acting or Officer-in-Charge (OIC) capacity following the end of Gilbert F. Santa Maria’s engagement for both positions. Capt. Ng is now the first pilot after close to six decades to take on the presidency of the flag carrier. Ng was previously the Senior Vice President for Airline Operations prior to his appointment.

The Board of PAL has since expressed its gratitude for Santa Maria’s tenure and likewise puts full trust and confidence in Capt. Ng, especially as the company aims for a full recovery. However, financial analyst Astro del Castillo believes that the appointment of an OIC instead of a president and COO sends a sense of uncertainty for investors.

“This OIC appointment sends the wrong signal to creditors especially since PAL just exited from Chapter 11 bankruptcy. It will only add more questions about PAL moving forward, on what direction it will take,” explained Del Castillo. He hopes, however, that “the [replacement] will be as good as the previous president. He was aggressive in fighting for the industry,  not just for PAL, especially during this pandemic.”

A former PAL official, on the other hand, clarified why Ng was appointed OIC first. “As I understand it, there is an internal process for choosing the president, which will have to be followed. That’s why Ng is OIC in the meantime.” The former official also noted that Santa Maria went through the same internal process before becoming the president in 2019.

Del Castillo further adds that investors will likely “play it safe instead of putting more money in PAL” during this time. Despite all the buzz, other former PAL executives and those involved in the industry are pleased by the announcement. “What I know is Stanley is competent, familiar with airport operations, low key, but mahusay,” said the same former official who pointed out the flag carrier’s internal process.

Sources: Manila Bulletin, BusinessMirror