Philippine Airlines Files Bankruptcy | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-07.07.25

Airborne-NextGen-07.08.25

AirborneUnlimited-07.09.25

Airborne-FlightTraining-07.10.25

AirborneUnlimited-07.11.25

Mon, Sep 13, 2021

Philippine Airlines Files Bankruptcy

United States Is A Favorite Haven For International Airlines Seeking Protection

Philippine Airlines filed for Chapter 11 bankruptcy with a lender-supported plan to help the carrier recover after the COVID-19 pandemic.

The company will get $505 million in equity and debt financing from its majority shareholder, in addition to $150 million from new investors to contribute to debt financing. The goal is to cut $2 billion in borrowings through a proposed restructuring plan, which will need court approval, allowing the carrier to reduce its fleet capacity by 25%.

The Chapter 11 filing allows the company to operate while it begins its journey to restructure. The filing comes after the airline negotiated for months with stakeholders.

Lucio Tan, the carrier's billionaire owner, was satisfied with the results and called the filing a “major breakthrough” for the company. The restructuring plan allows the airline “to overcome the unprecedented impact of the global pandemic that has significantly disrupted businesses in all sectors, especially aviation, and emerge stronger for the long-term,” Tan, who’s the chairman and chief executive officer, said in a statement.

Philippine Airlines is the latest international airline carrier to reorganize in the United States, under US bankruptcy code. By using Chapter 11, the company will subject its reorganization plan to the final decision of a U.S. judge. The filing took place in New York.

The US is rising in popularity due to the law in the states being favorable to a company. Other companies who sought protection in the US due to issues stemming from COVID, include Latam Airlines, Aeromexico and Avianca Holdings.

The airline will continue to operate its passenger and cargo flights based on demand and travel restrictions. The company expects to  add domestic and international flights as the market recovers.

FMI: www.philippineairlines.com/en

Advertisement

More News

Aero-News: Quote of the Day (07.11.25)

“Honored to accept this mission. Time to take over space. Let’s launch.” Source: SecTrans Sean Duffy commenting after President Donald Trump appointed U.S. Secret>[...]

ANN's Daily Aero-Term (07.11.25): Permanent Echo

Permanent Echo Radar signals reflected from fixed objects on the earth's surface; e.g., buildings, towers, terrain. Permanent echoes are distinguished from “ground clutter&rd>[...]

ANN's Daily Aero-Linx (07.11.25)

Aero Linx: European Hang Gliding and Paragliding Union (EHPU) The general aim of the EHPU is to promote and protect hang gliding and paragliding in Europe. In order to achieve this>[...]

NTSB Final Report: Schweizer SGS 2-33A

Glider Encountered A Loss Of Lift And There Was Not Sufficient Altitude To Reach The Airport Analysis: The flight instructor reported that while turning final, the glider encounter>[...]

NTSB Prelim: Aeronca 7AC

Airplane Climbed To 100 Ft Above Ground Level, At Which Time The Airplane Experienced A Total Loss Of Engine Power On May 24, 2025, at 1300 eastern daylight time, an Aeronca 7AC, N>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2025 Web Development & Design by Pauli Systems, LC