Flag carrier Philippine Airlines (PAL) is set to return at least twenty (20) aircraft — Airbus and Boeing planes — to its lessors as the airline undergoes a financial restructuring with the aim of surviving the ongoing pandemic where global travel continues to decline.
This development followed confirmation of PAL’s Chapter 11 bankruptcy filing in the United States aimed at gathering fresh capital while continuing its operations.
At present, PAL maintains a fleet of ninety-two (92) aircraft and is expecting the delivery of thirteen (13) narrow-body Airbus aircraft with an option to cancel some of those already ordered. The Filipino airline also said that they will be implementing a “power-by-the-hour” scheme for the remainder of their fleet to allow them to better manage their cash flow by paying a fixed cost based on the number of hours an aircraft is used.
During the first week of September 2021, PAL confirmed the buzz that they had filed bankruptcy in the US and has proposed a rehabilitation plan that will cut some US$2B in borrowings, to include more than US$500M in long-term debt-equity and debt financing from PAL Holdings, Inc. — the airline’s majority shareholder, and another US$150M of additional debt financing from new investors.
ANA Holdings of Japan currently holds a 9.5% stake in Philippine Airlines.