Join our daily newsletter At The Bell to receive exclusive market insights
- Philippines Airlines will return nearly a quarter of its planes to leasers as part of its financial restructuring process
- On Friday, the airline announced it was marking its 80th anniversary by beginning a US Chapter 11 financial restructuring
- The airline says it will come out of the restructuring process with “fresh capital, lower debt and a sturdier financial foundation”
- For now, that means returning 22 of its 92 planes, and postponing the delivering of 13 new jets from Airbus
Philippine Airlines will return nearly a quarter of its planes to leasers and push back a delivery from Airbus as part of its financial restructuring process.
The airline doesn’t expect to return to pre-pandemic operation levels for another three or four years, executives today said in a press conference, and as such will return 22 of its 92 planes to leasers.
Further, the company has negotiated to postpone — or cancel at a later date — a delivery of 13 new jets from Airbus.
An 80th anniversary bankruptcy
On Friday, the airline announced it was marking its 80th anniversary by beginning a US Chapter 11 financial restructuring.
A note from our team: Philippine Airlines continues to serve our valued customers as we embark on a key stage of our recovery with the support of our stakeholders and the commitment of our personnel.
— Philippine Airlines (@flyPAL) September 4, 2021
For more information, please visit https://t.co/qyz7aCKmVf. pic.twitter.com/fveK7HCXqS
The proposed restructuring — which requires court approval — was submitted to the Southern District of New York.
In a statement on its website, Philippine Airlines said the voluntary process would allow the company to emerge with “fresh capital, lower debt and a sturdier financial foundation”.
For now, the airline is reassuring customers it is “business as usual”.
