Philippine Airlines Review Sought
Jun. 24, 1999
MANILA, Philippines (AP) _ U.S. aircraft maker Boeing Co. wants a review of Philippine Airlines' financial rehabilitation plan, saying its claim of $128.5 million was not addressed in the recovery program.
In a petition today to Manila's Securities and Exchange Commission, Seattle-based Boeing said the airline's plan makes no provision for settling the cancellation of an order for eight 747-400 jets.
The eight jets were part of an order of 12 Boeing 747-400s placed by PAL _ along with an order for 24 Airbus jets _ under a $4 billion fleet modernization program.
The airline bought only four Boeing jets, which are used on its long-haul flights, and canceled the other eight orders because of financial problems.
Boeing contends the airline breached the purchase agreement. The $128.5 million claim covers the cancellation of the eight jets.
Boeing called on the SEC to have its claim included in the rehabilitation plan, which was approved by a slim majority of creditors earlier this month.
Philippine Airlines is mired in $2.2 billion in debts owed mostly to U.S. and European creditors.