Philippine Airlines continues to fly and serve the public, now and into the future

Dear Philippine Airlines Family,

We are happy to announce that Philippine Airlines has officially concluded the Chapter 11 restructuring process. 

We completed the process in less than four months, a shorter period than the one to three years typically experienced by other airlines. 

Ultimately, our restructuring succeeded because the entire PAL and PALex organization pulled together to restore our network after the catastrophic first months of the pandemic. 

Your efforts helped us earn the faith and confidence of our customers, creditors, industry and government partners, suppliers and the Filipino public as we kept the flag flying during the last 22 months. 

The renewal of Philippine Airlines benefits all of us – our employees and our customers – as we gain a sturdier financial foundation that helps us grow back our flights, routes and markets, enabling PAL to contribute actively to Philippine economic recovery and the revival of the tourism industry.

Chapter 11 emergence earns us a new chance to put PAL firmly on track towards self-sustaining profitability and market leadership. We must make the best of this new chance as we face great challenges ahead.  Your hard work, commitment, dynamism and love for PAL will matter more than ever.  

We will succeed as long as we focus resolutely on our mission as the national flag carrier and premier full-service airline – to deliver Buong Pusong Alaga to all our passengers, fly home our overseas Filipinos, transport the goods that keep our economy humming and sustain the vital links connecting our islands to global markets. Let us faithfully carry out that mission.

FAQ

What does the completion of our financial restructuring mean for our business?

Following the Court’s approval of our plan and the filing of the Notice of Emergence, we have completed the restructuring process, significantly reducing our debt and other liabilities. Throughout this process, we operated without interruption and remained focused on serving our valued customers and partners. We could not have done this without your dedication and hard work. Restructuring provided access to additional financing, which allowed us to remain focused on our priorities and will enable us to reinvest in our operations.

Is emergence the final step in the process?

Yes, this is the final step in the restructuring process and a great achievement for all the members of the worldwide PAL Family. We have emerged as a more efficient company, one that is better equipped to execute strategic initiatives and sustain the Philippines’ vital global air links to the world. Make no mistake: there are great challenges ahead, and the aviation markets have some way to go before full recovery. We will ask all of you to meet those challenges with the same dedication and fidelity to our mandate to serve the public and take great care of our customers.

Is the current leadership team expected to remain in place?

Yes. We do not anticipate any changes to our current management team as a result of the completion of our restructuring process.

Will there be any changes to my compensation and benefits package?

We will continue paying all employee obligations and wages and providing benefits in the normal course.

What does this mean for me? How will this impact my day-to-day role and responsibilities? Will I still report to the same individuals?

This is an exciting step for PAL and for our employees. We do not expect our emergence to have a direct impact on your day-to-day roles and responsibilities. You should continue to report to the same individuals and maintain your existing responsibilities as prior to our Chapter 11 filing and emergence.

Contact

If you have any questions related to our process, please do not hesitate to reach out to your internal manager.