We value our continued partnership
To our valued partners:
Our restructuring process will strengthen Philippine Airlines financially and enable us to reinvest in our operations to better support you as a partner. U.S. Chapter 11 financial restructuring is a well-established legal process that enables businesses to execute their financial recovery plans while continuing to operate and serve the public.
You are important to our business and we value the relationship that we have built with you.
Our highest priority is the safety and health of our employees, passengers and communities. And nothing about that will change as we undergo financial restructuring.
As we undergo Chapter 11 restructuring, we are expecting to secure US$505 Million in long-term equity and debt financing along with US$150 Million of additional debt funding and US$2.0 Billion in permanent balance sheet reductions as part of our agreements with key creditors and stakeholders.
We have the liquidity to continue operating in the normal course throughout this process. Importantly, this process is not an insolvency proceeding or liquidation.
- Travel Agency Partners and GSAs: We will continue to deliver uninterrupted service during this process and beyond. Our flights will continue according to current schedules. All tickets, vouchers, and frequent flyer miles remain valid and unchanged and subject to the usual terms and conditions of use. We continue to gradually increase domestic and international flights as travel demand recovers with the easing of government travel restrictions. We are continuing our efforts to clear the backlog in refunds by deploying more resources and improving processes, reaffirming PAL’s commitment to fulfill all refund obligations.
- Airline Partners: We will continue to deliver uninterrupted service during this process and beyond. As a network airline with a global market reach, you are very important to our business, and we will uphold and continue to honor all current interline, special prorate and codeshare agreements.
- Mabuhay Miles Program Partners: We will continue to recontract and accept more partnerships under the Mabuhay Miles Partner Program.
Throughout the restructuring process, we remain focused on maintaining business as usual and will maintain an open dialogue with our partners if there are any changes, consistent with past practice.
Will PAL continue to honor existing partnerships with other airlines and any other affiliated businesses?
Yes. Our business continues uninterrupted, and all tickets, vouchers, and Mabuhay Miles will be honored under the usual terms and conditions of use. Also, our interline relationships, special prorate arrangements, and codeshare agreements will continue unchanged throughout this process. Philippine Airlines will maintain its membership in the International Air Transport Association (IATA) and continue its participation in the IATA Clearing House (ICH).
We will continue to recontract and accept more partnerships under the Mabuhay Miles Partner Program. To arrange for a meeting, please email [email protected]
If you have any questions related to our process, please do not hesitate to reach out to your normal company contact.