PAL’s recovery plan approved by US court.

 PAL’s recovery plan approved by US court.

Philippine Airlines (PAL) has been given the green light by a US court to proceed with its recovery plan, which aims to help the airline bounce back from the financial impact of the COVID-19 pandemic.

The plan, which was approved by the US Bankruptcy Court for the Southern District of New York, will allow PAL to restructure its debt and secure new financing to help the airline stay afloat.

PAL has been hit hard by the pandemic, with travel restrictions and reduced demand for air travel leading to a significant drop in revenue. The airline was forced to file for Chapter 11 bankruptcy protection in the US in September 2021, in order to restructure its debt and secure new financing.

Under the approved recovery plan, PAL will receive $2.5 billion in new financing, which will be used to pay off existing debt and fund the airline’s operations. The plan also includes a reduction in the airline’s fleet size, as well as a reduction in its workforce.

PAL CEO Gilbert Santa Maria said in a statement that the approval of the recovery plan was a “significant milestone” for the airline, and that it would help PAL “emerge from Chapter 11 as a stronger, more competitive airline.”

The airline has also announced plans to expand its route network, with new flights to destinations in the US, Europe, and Asia. PAL is also planning to upgrade its fleet with new aircraft, including the Airbus A321neo and the Boeing 777X.

The approval of PAL’s recovery plan is a positive development for the airline, which has been struggling to stay afloat amid the pandemic. With new financing and a plan to restructure its debt, PAL is well-positioned to weather the ongoing challenges facing the airline industry and emerge as a stronger, more competitive player in the global aviation market.