PAL working on ‘restructuring plan’

Pandemic-hit flag carrier Philippine Airlines (PAL) said Wednesday it is now working on a “comprehensive recovery and restructuring plan.”

In January to September, PAL saw a net loss of P28.85 billion, more than three times the P8.49-billion net losses recorded a year earlier.

The airline also announced in October the reduction of up to 35% or more than 2,500 of its 7,000-strong workforce citing the collapse in air travel demand and travel restrictions due to COVID-19 pandemic.

"Philippine Airlines management and stakeholders continue to work on a comprehensive recovery and restructuring plan that will enable PAL to emerge financially stronger from the current global crisis,” PAL said in a statement.

“We will make the necessary disclosures at the proper time, once details are finalized."

In the meantime, we continue to gradually increase our flights operated on most of our international and domestic routes in line with market recovery,” it said.

Finance Secretary Carlos Dominguez III, in a separate text message, confirmed that “PAL informed the DOF (Department of Finance) team of their plans last week but gave no details on any assistance they may need from us.”

To recall, the Air Carriers Association of the Philippines —comprised of PAL, Cebu Pacific, and AirAsia Philippines —called for government intervention such as long term credit facility, working capital credit lines, credit guarantee arrangements, and temporary relief from navigational and airport charges as local carriers face liquidity problems due to worldwide air travel restrictions and reduced passenger demand in time of pandemic. 

Dominguez also confirmed that PAL is planning to seek court protection from its creditors in relation to the company’s debt restructuring plan.

Presidential spokesperson Harry Roque earlier gave assurance of government assistance to the pandemic-hit aviation industry. 

Mid-March, PAL along with all other carriers were forced to halt operations as the Philippines imposed strict travel and quarantine restrictions to curb the spread of COVID-19.

Air travel is gradually resuming as lockdowns were eased by the government.—LDF, GMA News