PAL to take to foreign skies

PAL to take to foreign skies

MANILA (Reuters): Resurrected Philippine Airlines is preparing
to take off for foreign skies again this week, but may avoid
using leased jumbo jets to fly to the United States for fear of
action by creditors there.

PAL on Sunday began international flights for the first time
since shutting down on September 24. An Airbus 320 flew President
Joseph Estrada to Singapore on his first foreign trip after
taking office in June.

"It's a 'Go'," PAL Executive Vice-President Manolo Aquino said
on Sunday, referring to the financially distressed flag carrier's
plan to resume international operations on October 15 after a 13-
day closure.

Problems with U.S. creditors may force PAL to use the smaller
Airbus 340-300 instead of its two leased Boeing 747-400 planes in
swings to Los Angeles and San Francisco, which have large
Filipino communities.

"We have a problem with Eximbank (U.S. Export-Import Bank),"
Aquino told Reuters. "They want to take (the airplanes) back.
We're negotiating with them right now."