Philippine Airlines files for U.S. bankruptcy protection over Corona disaster

Philippine Airlines (PR/PAL) filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court on September 3. This is equivalent to filing for the Civil Rehabilitation Law in Japan. PR/PAL plans to continue its operations as usual while trying to restructure. The company's business performance has deteriorated due to a drop in air travel demand caused by the spread of the new coronavirus infection, resulting in a large loss. The company judged that it would not be able to expect a recovery in demand for the time being because the infection was not expected to be contained. It is believed that the company has decided not to rebuild on its own. Philippine Airlines filed for legal liquidation in the U.S., as it has many creditors outside the Philippines.