Tag Archives: Philippines (Philippine Airlines)

Philippine Airlines exits Chapter 11 bankruptcy reorganization

"The Love Bus"

Philippine Airlines announced on December 31, 2021 it had exited Chapter 11 bankruptcy protection and reorganization.

The airline had previously filed for reorganization on September 3, 2021.

Philippine Airlines stated it would reduce its debt load by $2 billion and at the same time add $505 million in liquidity from its main shareholder PAL Holdings, owned by Lucio Tan. PAL also said that at the same time it had the option of obtaining a further $150 million from new investors.

The airline also stated it had terminated around 2,000 employees.

The airline issued this statement:

Philippine Airlines Inc. (PAL) announced on December 31, 2021 that it has emerged from its voluntary Chapter 11 proceedings as a more efficient airline with a strengthened balance sheet, reaffirming its continuing role as the Philippines’ sole full-service airline with the largest international network.

PAL successfully completed its financial restructuring within four months, in contrast to other airlines that remain in the Chapter 11 process more than a year after filing in 2020. The Philippine flag carrier credits the strong support of its creditors and shareholders, the cooperation of its industry partners and the collective efforts of PAL employees around the world who sustained flights on multiple international and domestic routes throughout the restructuring period.

PAL has streamlined operations with a reorganized fleet and is now better capitalized for future growth. The Company’s Plan of Reorganization, which was approved by the U.S. restructuring Court on December 17, 2021, provides for over US$2.0 billion in permanent balance sheet reductions from existing creditors, improvements in PAL’s critical operational agreements and additional liquidity including a US$505 million investment in long-term equity and debt financing from PAL’s majority shareholder.

The airline’s consensual restructuring plan was accepted by 100% of the votes cast by its primary aircraft lessors and lenders, original equipment manufacturers and maintenance, repair, and overhaul service providers, and certain funded debt lenders.

“Philippine Airlines stands ready to help grow back the Philippines’ local and international air travel markets in ways that renew the tourism industry, serve the needs of global citizens including overseas Filipinos, and contribute actively to the recovery of the Philippine economy,” said PAL Director Lucio C. Tan III, quoting PAL Chairman and CEO Dr. Lucio C. Tan. “Our mission as the flag carrier matters more than ever, and we are thankful for the chance to rebound from the pandemic and continue to fulfill this mission as best as we can.”

“This is a celebratory moment for PAL, for all our partners and stakeholders, and for our personnel who sacrificed much while working successfully to keep the airline flying,” said Gilbert F. Santa Maria, PAL President and Chief Operating Officer. “Above all, we thank our customers for their support, and the Filipino people for keeping faith in their flag carrier through the entire restructuring process. There are immense challenges ahead, but we look forward to tackling them as a reinvigorated Philippine Airlines, better positioned for strategic growth to continue serving our customers.”

Moving forward, PAL will reinvest in its operations to better serve its valued customers by:

  • Reinforcing PAL’s position as the Philippines’ sole full-service airline with the largest international network serving four continents, including:
    • The only nonstop flights linking the Philippines to the U.S., Canadian East and West Coasts, Hawaii, Brisbane, and Melbourne;
    • The largest network of flights from the Philippines to multiple cities in Japan, Australia and the Middle East, along with convenient schedules to Hong Kong, Korea, Taipei, Singapore, Thailand, Indonesia, Vietnam and Malaysia;
    • A high-frequency domestic network encompassing trunk routes to the major cities of Visayas, Mindanao and Luzon, as well as inter-island services to the nation’s tourist hot spots and paradise islands;
    • The only full-service options in Philippine domestic skies, including Business Class on many local routes.
  • Restoring more routes and increasing flight frequencies as travel restrictions ease and borders reopen, including the resumption of regular flights to multiple cities in mainland China, full regularization of flights to Australia and the commencement of historic new services to Israel.
  • Building on code sharing and interline partnerships to complement the airline’s current and future network and allow PAL passengers to enjoy better connections and access to more destinations through partner airlines.
  • Expanding PAL’s newly established cargo business to tap more air cargo market opportunities, including the operation of all-cargo flights to keep supply chains moving and to meet specific freight transport needs such as the airlift of vaccines and medical equipment.
  • Offering year-round great value fares and competitive promotional offers.
  • Developing innovations to PAL’s Mabuhay Miles frequent flyer program, including an expansion of membership rolls and enhancements to program terms and benefits.
  • Accelerating digital transformation initiatives to deliver seamless and intuitive experiences to PAL customers, including a more personalized website and mobile app, a streamlined booking process that offers more flexible payment options such as e-wallets and installment plans, enhanced self-service options for rebooking and check-in, and improved chat facilities and inter-active voice response (IVR) functions through PAL’s contact center.
  • Rolling out new product advancements within 2022, as part of a commitment to continuously upgrade services and the overall customer travel experience.
  • Upholding, as always, the strictest professional safety standards and health protocols in all of PAL’s operations.

Under the newly effective recovery plan, PAL has the option to obtain up to US$150 million in additional financing from new investors.

PAL reiterated its commitment to fulfill all refund obligations. The Company has cleared over 99% of past refunds and is now back to normal processing times for refunds, except for some 2020 cases that require validation procedures mostly involving third party providers.

Philippine Airlines Inc. was the only party included in the Chapter 11 filing; while PAL Holdings Inc., which is listed on the Philippine Stock Exchange (PSE: PHI), and Air Philippines Corporation, known as PAL Express, were not included in the Chapter 11 filing.

75 Years of connecting the Pacific.

On July 31, 1946, Philippine Airlines became Asia’s first airline to cross the Pacific Ocean. The pioneer DC-4 flight carried 40 American servicemen from Manila to Oakland, California, via Guam, Wake, Kwajalein and Honolulu.

Top Copyright Photo: Philippines (Philippine Airlines) Airbus A350-941 RP-C3507 (msn 280) (The Love Bus) YYZ (TMK Photography). Image: 946502.

Philippine Airlines aircraft slide show:

Philippine Airlines aircraft photo gallery:

Philippine Airlines to return 22 aircraft in Chapter 11 reorganization

Philippine Airlines, as previously reported, is now going through the Chapter 11 bankruptcy reorganization process in the United States.

PAL will use the process to shed 22 unused jets, mainly Airbus and Boeing aircraft on lease.

The carrier expects to trim its fleet from 92 aircraft to around 70 in the process according to Reuters.

The airline has also negotiated with Airbus to delay the delivery of 13 narrow-body aircraft.

COVID-19 has ravaged the airline’s markets.

In other news, Philippine Airlines is operating special flights from the UAE, Malaysia and Thailand in September in support of the Philippine Government’s “Bayanihan” repatriation program.

PAL Bayanihan flights:

  • Dubai-Manila (PR 659) – September 2, 4, 6, 8, 11 and 14
  • Kuala Lumpur-Manila (PR 526) – September 4
  • Bangkok-Manila (PR 731) – September 9
  • Jakarta to Manila (PR 540) – September 12

For Lufthansa

Above Copyright Photo: This A350 has already gone to Lufthansa: Philippines (Philippine Airlines) Airbus A350-941 RP-C3506 (msn 243) MUC (Arnd Wolf). Image: 954404.

PAL aircraft slide show:

 

Philippine Airlines files for Chapter 11 bankruptcy reorganization

Philippines (Philippine Airlines) Boeing 777-300 ER RP-C7782 (msn 61735) PAE (Nick Dean). Image: 940281.

Philippine Airlines Inc. (PAL) has announced it has entered into a series of agreements with substantially all of the Company’s lenders, lessors, and aircraft and engine suppliers, as well as its majority shareholder, to allow the Company to successfully restructure and reorganize its finances to navigate the COVID-19 crisis and emerge as a leaner and better-capitalized airline.

The restructuring plan, which is subject to court approval, provides over US$2.0 Billion in permanent balance sheet reductions from existing creditors and allows the airline to consensually contract fleet capacity by 25% and includes US$505 Million in long-term equity and debt financing from PAL’s majority shareholder and US$150 Million of additional debt financing from new investors.

As part of the agreements with key stakeholders, the Company has voluntarily filed for a pre-arranged restructuring under the U.S. Chapter 11 process in the Southern District of New York to implement the consensual restructuring plan. PAL will also complete a parallel filing for recognition in the Philippines under the Financial Insolvency and Rehabilitation (FRIA) Act of 2010.

Top Copyright Photo: Philippines (Philippine Airlines) Boeing 777-300 ER RP-C7782 (msn 61735) PAE (Nick Dean). Image: 940281.

PAL aircraft slide show:

Philippine Airlines cancels all domestic flights

Philippine Airlines has made this announcement:

 

In compliance with the Philippine government’s Enhanced Community Quarantine measure over the Region of Luzon, including Metro Manila, ALL DOMESTIC FLIGHTS of Philippine Airlines are CANCELLED effective March 17, 2020 until April 12, 2020.

Flights shall resume on April 13, 2020.


We continue to operate INTERNATIONAL FLIGHTS up to 11:59 PM March 19, 2020.  We will announce in due course the status of our international flights from March 20 up to April 12, as we are presently coordinating with government authorities on the relevant implementing details.

PAL will comply with the travel restrictions set out in the quarantine rules.

Please note that this is a developing situation, and the quarantine rules are subject to periodic review by the Philippine government’s Inter-Agency Task Force for COVID 19.

Philippine Airlines aircraft photo gallery:

Goshawk delivers its first Airbus A350-900 to Philippine Airlines

"The Love Bus"

Goshawk has announces the delivery of an Airbus A350-900 aircraft to four star carrier Philippine Airlines. This is the first delivery between Goshawk and Philippine Airlines.

This year marks the 40th anniversary of partnership between Airbus and Philippine Airlines. To celebrate this partnership, Philippine Airlines has showcased its ‘Love Bus’ logo on the aircraft, which was first unveiled on Philippine Airlines Airbus A300B4 aircraft in 1979.

Top Copyright Photo (all others by Goshawk): Philippines (Philippine Airlines) Airbus A350-941 F-WZNA (RP-C3507) (msn 280) (The Love Bus) TLS (Eurospot). Image: 945448.

Philippine Airlines aircraft slide show:

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ANA Holdings acquires a 9.5% state in PAL Holdings

Philippines (Philippine Airlines) Boeing 777-3F6 ER RP-C7773 (msn 38718) LAX (Michael B. Ing). Image: 945498.

ANA Holdings has made this announcement:

ANA Holdings, Inc., parent of All Nippon Airways (ANA), will invest $95 million US dollars in PAL Holdings Inc. and acquire 9.5% of PAL Holding’s outstanding shares. PAL Holdings is the parent of Philippine Airlines Inc. (PAL), the Philippine flag carrier and the largest airline in the Philippines.

ANA HD will acquire the shares from Trustmark Holdings Corporation, which is owned by the Lucio Tan family and is the largest shareholder of PAL Holdings.

In line with the Mid-Term Corporate Strategy for FY2018-2022, the ANA Group is expanding its international group network, which is considered its main growth pillar, and strengthening its partnerships with foreign airlines to provide further convenience to its passengers.

This purchase underscores ANA HD’s belief in the dynamism of the Asian region and the great potential of the Philippines’ multi-awarded flag carrier and its confidence that the Philippine air travel market will continue to serve as an economic leader for the ASEAN region.

Additionally, the investment by ANA HD heralds the dawn of a new era of growth for PAL, which has embarked on a full-scale expansion program that has seen its fleet and network grow to almost 100 aircraft and 80 destinations in four continents. This campaign has coincided with an emphasis on product transformation that saw PAL recognized recently as the World’s Most Improved Airline for 2019.

ANA operates 14 flights weekly on 2 routes to the Philippines and Philippine Airlines currently operates 84 flights weekly on 9 routes to Japan. The two carriers have codeshare operations on Japan – Philippine routes and domestic routes within Japan and the Philippines, linking a total of 16 Japanese and 11 Philippine destinations.

Completion of the investment is subject to certain closing conditions.

Top Copyright Photo (all others by PAL): Philippines (Philippine Airlines) Boeing 777-3F6 ER RP-C7773 (msn 38718) LAX (Michael B. Ing). Image: 945498.

Philippines aircraft slide show:

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Philippine Airlines to expand its Asia network, gets ready to take delivery of a new A350 “The Love Bus”

"The Love Bus"

Philippine Airlines is expanding its Asia network with new routes to Hanoi, Phnom Penh and Delhi this spring.

The Manila – Hanoi route will start on March 31 and will operate four days a week.

Manila – Phnom Penh service will start the following day on April 1. This new route will operate five days a week.

Finally the carrier is returning to Delhi, India in April. The restored route will operate four days a week with new Airbus A321neo aircraft (below).

Philippine Airlines also made this announcement about the return of “The Love Bus”:

Philippine Airlines is slated next month to receive its 5th brand-new Airbus A350-900, the 4-Star carrier’s flagship fleet for long-haul operations to New York, London, and soon, Toronto. The sleek fuselage of the ultra-modern, long-range aircraft will showcase the “Love Bus” logo to mark the PAL-Airbus partnership now on its 40th year, and to celebrate the airline’s signature heartfelt service. Photo shows the freshly-painted PAL A350 Love Bus at the Airbus plant in Toulouse, France, proudly bearing the “kiss mark” Love Bus logo that was first unveiled on PAL’s Airbus A300B4 aircraft in 1979 and the early 1980s.
Top and Bottom Copyright Photos: Philippines (Philippine Airlines) Airbus A350-941 F-WZNA (RP-C3507) (msn 280) (The Love Bus) TLS (Eurospot). Image: 945447.
Philippine Airlines aircraft slide show:

"The Love Bus"

Philippine Airlines launches its nonstop New York route

First flight June 7, 2018, first Philippines Airbus A350-900

On October 29, 2018, Philippine Airlines marked another milestone in aviation history as the first airline to fly nonstop service to New York from the Philippines.

A brand-new PAL Airbus A350-900 commenced the historic flight when it departed as flight PR126 from Manila’s Ninoy Aquino International Airport for a 16-hour nonstop journey across the North Polar regions, to land at New York’s John F. Kennedy International Airport on the evening of the same day.

From October 29 to November 3, 2018 PAL will operate a four times weekly service (Monday / Tuesday / Thursday / Saturday) from Manila to New York.

PR126 departs from Manila at 8:10 PM and arrives in New York JFK at 11:15 PM (local time) on the same day. By November 5, Manila departure will shift to 9:00 PM and arrival in New York JFK remains at 11:15 PM. Starting on December 6, 2018, PAL will start serving the MNL-JFK route five times weekly with the introduction of the 5th frequency (every Wednesday).

From October 30 to November 5, PAL will serve the New York to Manila route four times weekly (Tuesday/ Wednesday / Friday / Sunday).

PR127 will leave New York JFK at 1:45 AM (local time) and touch down in Manila is at 6:25 AM the following day. By November 7, arrival in Manila will be at 7:25 AM (note: departure from New York remains at 1:45 AM local time.)

PAL will operate the 5th frequency (every Thursday) out of New York starting December 13.

All PAL flights to New York will depart from NAIA Terminal 2. PAL flights from New York will arrive at NAIA Terminal 1. However, PAL flights to and from Canada, i.e. Vancouver and Toronto, will use NAIA Terminal 1 as their point of departure and arrival in Manila.


Above Photo: PAL. Leading the Flight: PAL A350 Chief Pilot Captain Emmanuel ‘Butch’ Generoso (second from the left) and Captain Jose David (left).

Top Copyright Photo: Philippines (Philippine Airlines) Airbus A350-941 F-WZNA (RP-C3501) (msn 221) TLS (Eurospot). Image: 942285.

PAL aircraft slide show:

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Philippines to bring the Airbus A350-900 to Los Angeles

Philippines (Philippine Airlines) Airbus A350-941 F-WZNZ (RP-C3503) (msn 228) TLS (Paul Bannwarth). Image: 942986.

Philippine Airlines will introduce the new Airbus A350-900 on the Manila – Los Angeles route on September 22, 2018. Initially the new service will be operated on two days.

Copyright Photo: Philippines (Philippine Airlines) Airbus A350-941 F-WZNZ (RP-C3503) (msn 228) TLS (Paul Bannwarth). Image: 942986.

Philippines aircraft slide show:

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Philippine Airlines takes delivery of its first Airbus A350-900

First flight June 7, 2018, first Philippines Airbus A350-900

Philippine Airlines (PAL) has taken delivery of its first Airbus A350-900 at a special event in Toulouse, France, becoming the 19th airline to operate the world’s most modern and efficient long range airliner.

Altogether, Philippine Airlines has ordered six A350-900s, which will be primarily operated on nonstop services to Europe and North America. These will include the carrier’s longest route to New York, which the A350-900 can operate nonstop in both directions, all year round. Representing a distance of over 8,000 nautical miles, the 17 hour return journey from New York to Manila previously involved a technical stop in Vancouver.

Philippine Airlines has configured its A350-900s with a premium three class layout seating 295 passengers in three classes. This including 30 seats that convert to fully flat beds in Business Class, 24 offering extra space in Premium Economy and 241 18-inch wide seats in the main cabin.

The aircraft features the award-winning Airspace by Airbus cabin, with more personal space and full connectivity throughout. The cabin is the quietest of any twin aisle aircraft and features the latest mood lighting and air conditioning systems. Higher humidity levels and a lower cabin altitude all contribute to added well-being on board, especially for long range flights.

At the end of June 2018, Airbus has recorded 882 firm orders for the A350 XWB from 46 customers worldwide, already making it one of the most successful widebody aircraft ever. 182 A350 XWBs have been delivered to 19 airlines worldwide.

Top Copyright Photo (all others by Airbus and Philippines): Philippines (Philippine Airlines) Airbus A350-941 F-WZNA (RP-C3501) (msn 221) TLS (Eurospot). Image: 942284.

Philippines aircraft slide show: