Philippine Airlines has filed for a pre-arranged restructuring under the US Chapter 11 process in the Southern District of New York with the view to "emerge as a leaner and better-capitalised airline". Philippine Airlines (PAL) is the only party included in the Chapter 11 filing, while PAL Holdings, which is listed on the Philippine Stock Exchange (PSE), and Air Philippines Corporation, known as PAL Express, are not included in the Chapter 11 filing, according to a 6 September PSE filing. The airline will also complete a parallel filing for recognition in the Philippines under the Financial Insolvency and Rehabilitation Act of 2010. PAL says it has entered into a "series of agreements" with "substantially all" of its lenders, lessors, aircraft and engine suppliers, as well as its majority shareholder to restructure and reorganise its finances. The restructuring plan, which is subject to court approval, provides over $2 billion in permanent balance sheet reductions from existing creditors and allows PAL to consensually contract fleet capacity by 25%, it adds. It also includes $505 million in long-term equity and debt financing from PAL’s majority shareholder and $150 million of additional debt financing from new investors. The debtor-in-possession (DIP) financing is split between a $250 million Tranche A and a $255 million Tranche B. The company will continue to operate flights "in the normal course of business in accordance with safety regulations" and expects to continue to meet its current financial obligations throughout the process to employees, customers, the government, as well as its lessors, lenders, suppliers, and other creditors. “We welcome this major breakthrough, an overall agreement that enables PAL to remain the flag carrier of the Philippines and the premier global airline of the country, one that is better equipped to execute strategic initiatives and sustain the Philippines’ vital global air links to the world," states Lucio Tan, PAL's chairman and chief executive. "We are grateful to our lenders, aviation partners and other creditors for supporting the plan, which empowers PAL to overcome the unprecedented impact of the global pandemic that has significantly disrupted businesses in all sectors, especially aviation, and emerge stronger for the long-term." The Chapter 11 filing is being administered before Shelley Chapman, a federal bankruptcy judge for the Southern District of New York bankruptcy court. PAL's legal advisors are Debevoise & Plimpton, Norton Rose Fulbright US and Angara Abello Concepcion Regala & Cruz. Seabury Securities is its financial advisor and investment banker.

Malaysia has become the latest country to lift its operating ban on the Boeing 737 Max. In a 2 September safety directive, the Civil Aviation Authority of Malaysia (CAAM) said it was revoking with immediate effect a directive issued on 13 March 2019 that prohibited operations of the 737 Max 8 into, within and out of Malaysian airspace. CAAM says it took the decision after reviewing "all applicable FAA and manufacturer publications on the Boeing 737 Max in relation to its return to service". Data shows that Malaysia Airlines has orders for 10 737 Max 10 and 15 Max 8 aircraft. Malaysia's announcement comes days after India cleared the Max to begin operating to and from its airports again. "To date, 176 states have revoked their airspace prohibition on the operations of Boeing 737 Max, of which 17 states reside in the Asian region," says CAAM. Absent from that list is China, which has yet to certificate the Max to fly in its airspace. Boeing chief executive David Calhoun expressed optimism in July that China's aviation regulator would clear the jet by the end of 2021. Chinese operators account for a third of about 290 pre-built Max aircraft awaiting delivery.

Free movement around Europe is being compromised by the failure of some EU member states to harmonise their Covid-19 entry requirements, holding back the travel industry's recovery, IATA has warned. The airline association's research finds that 30% of states using the EU's Digital Covid Certificate do not accept rapid testing, while 19% do not exempt children from testing, and 41% do not allow vaccinated travellers from non-EU 'white list' countries to enter. Additionally, 11% of countries only accept paper versions of passenger locator forms, while a similar proportion have no locator forms at all. “It's essential that European states come together on Covid-19 travel procedures," states IATA's regional vice-president for Europe, Rafael Schvartzman. "The good work done by the Commission and the states to develop the DCC is being wasted by a mess of unharmonised regulations." He adds: "How can passengers travel with confidence when the rules are so different in each country within the European Union? They can't be sure if their children need to be tested or not, or if they need to fill in a form on paper, online, or not at all. It's one Europe Union. People reasonably expect a united approach to managing travel." IATA is urging all countries to accept rapid testing instead of PCR versions, exempt children from testing, and allow passengers from low-risk countries to enter Europe. "The experience over the European summer shows that a standard digital certificate is not enough: the travel processes around Covid-19 must also be harmonised and smoothed out," argues Schvartzman. "We urge European states to sort out the current mess and give hard-pressed passengers greater certainty over their travel plans."