This move is a key part of the flag carrier’s strategy to expand its market share abroad. It comes as the airline prepares for new planes and faces growing competition from both global and local players.
“With a strengthened leadership team, we believe PAL is well-positioned to navigate the challenges of an increasingly competitive global market and grow further,” said Tan, the chair and CEO of PAL.
During the airline’s stockholders’ meeting on Thursday, Nuttall officially took the helm of the flag carrier, becoming the first foreign president in its eight-decade history.
Before this, he had a successful career as a global airline executive, most recently serving as CEO of SriLankan Airlines.
The leadership revamp comes as PAL prepares to take delivery of nine Airbus A350-1000 long-range aircraft, the first of which is scheduled to arrive by the end of the year.
“PAL is also strengthening its competitive edge by expanding nonstop routes and forming new inter-airline partnerships to improve connectivity to global markets and offer customers greater access to more destinations,” the airline said in a statement.
PAL’s finances, while stable coming off its Chapter 11 restructuring during the pandemic, are facing increasing cost pressures alongside other industry players.
Despite a 50-percent slump in earnings last year, it maintained a net margin of 5 percent, above the 3 percent global average.
“Philippine Airlines delivered solid financial results, expanded its network, and maintained high standards of operational reliability, amid global challenges that have continued to impact the airline industry,” said Lucio C. Tan III, president of parent firm PAL Holdings, whose stockholders’ meeting was held on the same day.
“These positive outcomes have led to stronger financial footing, renewed stakeholder confidence, and better preparedness for PAL for its future growth initiatives,” he added.
