PAL may cancel jet order

PAL may cancel jet order

MANILA (AFP): Philippine Airlines (PAL) is planning to cancel its order for four Boeing 747-400 jets due to high interest rates and the currency crisis sweeping the region, a business newspaper reported yesterday.

The Business World newspaper, quoting an unnamed PAL official, said the ailing national flag-carrier had written to Boeing Co. earlier this month, informing the aircraft-maker of the decision to cancel the order for the four planes.

The official was quoted as saying that the two firms had begun discussions on terms of the cancellations and expressed hope that PAL would not be hit with a penalty.

Once the economic situation turns around, PAL will consider reordering the four aircraft, the newspaper said.

PAL spokesmen said they could not comment on whether PAL was cancelling the Boeing orders.

However they said that PAL was still scheduled to receive 15 Airbus planes this year as part of its 36-plane fleet modernization program.