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UPDATE 2-Philippine Airlines plans court protection as pandemic hits finances

Published 11/25/2020, 12:08 PM
Updated 11/25/2020, 05:30 PM
© Reuters.
9202
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* Debt restructuring with government aid - minister
* Nearly all of the company's aircraft under lease
* Travel curbs continue to dampen demand

(Adds statement from Philippine Airlines, details)
MANILA, Nov 25 (Reuters) - Philippine Airlines PHL.UL
plans to seek court protection from creditors while it pursues
debt restructuring with government help, the finance minister
said on Wednesday, as it fights to survive a pandemic that has
battered the industry globally.
The loss-making flag carrier, partly owned by Japan's ANA
Holdings Inc 9202.T , informed the ministry of its plans last
week but gave no details as to what kind of government
assistance it needs, Finance Secretary Carlos Dominguez told
reporters.
In a statement, Philippine Airlines said the company and its
shareholders were working on a "comprehensive recovery and
restructuring plan" that would allow the carrier to emerge from
the global crisis.
The airline said it continues to gradually increase domestic
and international flights as the market recovers.
Philippine Airlines, which last month announced a reduction
of 2,700 jobs, or a third of its workforce, has a fleet of 98
Boeing and Airbus aircraft, 85 of which are leased.
As of end-September, the listed operator of Philippine
Airlines reported 198 billion pesos ($4.12 billion) in lease and
long-term debts.
Net losses in January to September surged to 28.9 billion
pesos, more than three times the 8.5 billion for the same period
of last year.
The airline halted operations in mid-March as the country
imposed one of the world's strictest and longest coronavirus
lockdowns.
Philippine budget carrier Cebu Air Inc last month announced
plans to raise roughly $500 million through bonds and shares to
ride out the downturn.

 

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