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-04.21.25

Airborne-NextGen-04.22.25

AirborneUnlimited-04.23.25

Airborne-FltTraining-04.24.25

AirborneUnlimited-04.25.25

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

ANN's Daily Aero-Term (04.22.25): Landing Area

Landing Area Any locality either on land, water, or structures, including airports/heliports and intermediate landing fields, which is used, or intended to be used, for the landing>[...]

ANN's Daily Aero-Linx (04.22.25)

Aero Linx: North American Trainer Association NATA is an independent, non-profit 501(c)(3) corporation dedicated to the preservation, restoration and safe operation and enjoyment o>[...]

Airborne 04.23.25: CAF C-47 Skytrain, Tough Low-Level Drone Regs, NEW NOTAMs

Also: Astronaut Pettit & Cosmonauts Return, Malaysia Wants Boeing Slots, Germany Nixes Typhoon Sale, More Boeing Woes The CAF’s restored C-47 Skytrain “Ready 4 Duty>[...]

Airborne 04.21.25: Charter Bust, VeriJet Woes, Visual Approach Risks

Also: Sun Country CEO to Spirit, Indian AF Rafale Jets, Archer-United, Avflight Grows Federal prosecutors recently filed a lawsuit against an uncertified charter flight company and>[...]

Aero-News: Quote of the Day (04.23.25)

“The Notice to Airmen system is deeply outdated and showing serious cracks. Over the last few years, we’ve seen multiple system outages ground regional air travel, crea>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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