Andrzej Jeziorski/SINGAPORE
Struggling Philippine Airlines (PAL) is talking to Lufthansa about a joint cargo service between Manila and Frankfurt, which could mark PAL's return to Europe after a year away.
According to PAL, the proposed block space agreement will come into effect on 1 November, with PAL buying a cargo space allocation on three weekly Lufthansa MD-11 flights. "The Lufthansa block space deal allows PAL to gain a toehold in the rapidly growing cargo market to Europe," says the Philippine carrier.
PAL had to stop services to Frankfurt, London and Paris in June last year because of the Asian economic crash, industrial disputes and a debt exceeding $2.2 billion. The carrier is working to re-establish itself under a rehabilitation plan agreed in May by the Philippine Securities and Exchange Commission (SEC)allowing it to keep operating with fewer aircraft.
The carrier has been hit with fresh calls from Boeing for the SEC to reject the plan. The US manufacturer wants PAL to pay more than $100 million in damages for cancelling a seven-aircraft order for Boeing 747-400s. Boeing has written to the SEC calling on it to justify its approval of the plan, which Boeing says does not provide for its damages claim because it is not a secured aircraft creditor.
Boeing is understood to be calling on the SEC to list all the creditors that approved the rehabilitation plan, revealing the class and size of debt held by each one.
PAL is also in talks with Lufthansa Technik over a possible maintenance joint venture, and has employed Lufthansa Consulting to help with its revival plans.
Source: Flight International
