PAL, WA reach settlement

PAL, WA reach settlement

MANILA (AFP): Philippine Airlines (PAL) and World Airways (WA) on Saturday "reached an amicable settlement" over aircraft PAL leased from the U.S. firm, a statement said.

Executives from the two companies signed an agreement ending "several days of legal posturing between the two companies," the statement issued by PAL said.

"World Airways committed to PAL to exert more effort to improve its on-time reliability and backed up this commitment with stricter guarantees," it said.

"PAL on the other hand committed to continue with the wet lease under a restructured agreement," it added.

The statement did not say how many or what type of aircraft PAL leased from World Airways, but said "the centerpiece of PAL's four billion-dollar reflecting and modernization program is the four-engine A340-300s."

PAL has phased in 17 new aircraft including four B747-400s, four A340-200S, two A340-300s and a wet lease of three A340-300s and four MD11s.