Jakarta, CNBC Indonesia – The national airline of the Philippines, Philippine Airlines, filed a bankruptcy filing with the United States (US) courts. This is due to the company’s financial performance which has been severely disrupted due to restrictions in the Covid-19 pandemic.
In magazine reports Forbes,The company, which is currently majority-owned by billionaire Lucio Tan, has reportedly also entered into a restructuring plan. At least, about US$ 655 million or around Rp 9 trillion is needed for this.
“The restructuring plan, which is subject to court approval, provides for more than $2 billion in permanent balance sheet reductions from existing creditors and allows airlines to consensually contract out fleet capacity of 25%,” the company said in a statement. 9/2021).
The plan Philippine Airlines also plans to file for bankruptcy in the Philippines. Under the Bankruptcy and Financial Rehabilitation Act 2010.
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Foto: Philippine Airlines. (Dok: Gallery Philippine Airlines) Philippine Airlines. (Dok: Gallery Philippine Airlines)- – |
“We are committed to maintaining business continuity throughout the restructuring process, while meeting financial obligations to employees, customers, the Philippine government, lessor and creditors,” he explained.
The Covid-19 pandemic, which is still happening in several countries, has rolled the aviation business around the world. The International Air Transport Association estimates that airlines around the world will lose about $48 billion this year after losing about $126 billion last year.
Previously, Italy’s national airline, Alitalia, also decided to close all flights starting October 15, 2021. This came after the airline was unable to maintain its financial performance for several years plus the effects of the Covid-19 pandemic were limiting public movement.
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