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Officials prepare plan for PAL


AREHABILITATION plan for flag carrier Philippine Airlines is expected to be agreed by officials this week.



The Philippine national financial regulator has already indicated proposals to restructure PAL will be accepted.



The plan calls for investment from outside firms, which so far include Lufthansa’s consulting subsidiary, to keep the debt-ridden carrier going. PAL chairman Lucio Tan is committed personally to finding $200m in additional capital.



Other criteria for PAL involves a new debt repayment programme to reduce the $2bn owed and operation of a 22-aircraft fleet. PAL currently flies limited regional and trans-Pacific routes. European services were axed almost a year ago.


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