Philippine Airlines (PAL) recently opened a new service from Manila to Seattle via Honolulu, in a move to generate revenues by expanding operations in the United States West Coast.
While PAL operates regular flights to Honolulu, the Honolulu to Seattle leg will be operated by Hawaiian Airlines through an interline partnership.
Cielo Villaluna, PAL spokesperson, said this marked the beginning of a broader partnership by PAL with Hawaiian Airlines.
From Honolulu, PAL also plans to launch flights to Las Vegas, Phoenix and Portland. PAL will tap codeshare and interline agreements to support the strategy.
PAL is rationalizing its US operations as part of a business recovery plan, after the filing of Chapter 11 creditor protection proceedings last Sept. 3 in New York.
Under the business plan, PAL will continue to operate to San Francisco and Los Angeles in the US West Coast.
PAL intends to give up its ultra-long-haul service to the US East Coast as well as to London.
The carrier previously attempted to mount direct Manila-Seattle flights but was foiled by United Airlines in early 2020.
The United Airlines challenged PAL’s expansion before the US Department of Transportation, saying the Philippine government was unfairly denying United Airlines slots in Manila’s Ninoy Aquino International Airport.
Earlier, PAL said it will increase flight frequencies to San Francisco, Los Angeles and Honolulu between late October and November this year.
PAL’s restructuring plan includes the write-off of $2.1 billion in debts, additional equity from its owner Dr. Lucio C. Tan and the return of 21 aircraft, or more than 20% of its fleet.
Parent firm PAL Holdings Inc. is also undergoing capital restructuring to help support PAL’s recovery.
The board of PAL Holdings approved the increase of its authorized capital from P13.5 billion to P30 billion, according to a filing with the Philippine Stock Exchange last Sept. 28.
PAL Holdings said this was to prepare for the fresh infusion of capital coming from Tan’s Group.
“The new capital will, in turn, be invested into issuer’s subsidiary, Philippine Airlines, pursuant to the court-supervised reorganization of PAL,” PAL Holdings said in the filing.