Philippine Airlines Plans For Major Restructuring After Filing For Chapter 11 Bankruptcy

Philippine Airlines is among those airlines that suffered major losses during the coronavirus pandemic. The restrictions imposed on travel during 2020 and 2021 forced these airlines to take several measures to survive. Restructuring is one of them. Philippine Airlines has decided to undergo major restructuring. As part of restructuring plans, the airline has now revealed that it will remove 22 aircraft from its fleet. It will now work as a smaller airline and will provide services on fewer destinations. The decision has been taken as there are very chances of recovery in the immediate future. President Gilbert Santa Maria confirmed details about the fleet reduction.

This was almost certain as the airline filed for bankruptcy protection. With this decision, the number of aircraft in its fleet will reduce to 70. These aircraft were leased and will now be returned to lessors. However, it is not clear which types of aircraft would be returned. There are reports that it would include some of the widebody 777 and A350 aircraft. Philippine Airlines was till now operating with 10 777-300ER aircraft. Out of which, six were on the lease. The company was operating four A350 and all of them were on the lease. The company was already discussing returning at least two A350s and around four 777s to lessors in May this year.

Apart from returning aircraft, the airline is also thinking about upcoming orders. Philippines Airlines has placed an order of 13 A321neos with Airbus. The airline has now held talks with the aerospace company and reached an agreement to delay the deliveries. Even more, the company can now cancel some of its orders beyond 2026. However, it is not clear how many, if any, would be canceled. These changes are part of the restriction after the airline filed for Chapter 11 bankruptcy in the United States. The company aims to save around USD 2 billion through these majors. Maria has expressed hopes that the process of finishing the Chapter 11 restructuring would be over by end of this year. But he said that it is very unlikely that the revenue would return to pre-pandemic levels anytime before 2025.