2022 Will Be a ‘Comeback Year' for PAL: Lucio Tan

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After overcoming financial challenges last year due to the COVID-19 pandemic, flag carrier Philippine Airlines (PAL) expressed optimism on Tuesday that it would emerge stronger in 2022 as it unveiled plans for network expansion, digital innovation, and a more cargo-driven strategy, gmanetwork.com reported. “We look forward to a comeback year for Philippine Airlines and for our country,” said PAL chairman and CEO Lucio Tan. PAL is celebrating its 81st anniversary this year. “Our 81st birthday marks a day of rebirth for PAL. We will make good use of our new life by delivering a stronger, more reliable and dynamic airline that our customers will love and appreciate. You have my assurance that we will stay true to our mission of serving the Filipino people through a network that keeps the Philippines connected to the global economy,” said Tan. On January 1, PAL announced it had emerged from its voluntary chapter 11 bankruptcy proceedings. In September last year, the flag carrier filed a voluntary petition for a prearranged restructuring under the U.S. chapter 11 process. Under its arrangements with creditors, the flag carrier will secure some $505 million for its recovery plan upon its exit from the process — the first tranche will be a $250-million facility debt to be pared down in the next five years, and the second tranche worth $255 million will be converted into equity. Read more.