Lucio Tan expects the negotiations for the sale of a majority stake in flag carrier Philippine Airlines Inc (PAL) to be finalized by next year. The said transaction will be discussed with San Miguel Corporation (SMC), according to ABS-CBN News.

Tan, chairman and chief executive officer of PAL, said that his group is in talks with SMC for the divestment of the 51% stake in the airline. Should Tan's group decide to sell the said stake to SMC, the flag carrier will become a wholly-owned company of SMC, which presently holds a 49% stake in PAL, the report explained.

In April 2012, SMC infused $500 million to buy a 49% equity interest in Trustmark Holdings Corp. The latter owns 97.71% of PAL's parent firm, PAL Holdings Inc, which owns 84.67% of PAL through the firm PR Holdings Inc, the report detailed.

Since SMC entered the picture, the Philippine carrier has been on a refleeting program. This program involves the purchase of 100 new aircrafts to gear for its Europe and additional US flights. The airline presently operates a fleet composed of 48 aircrafts, ABS-CBN News reported.