MANILA, PHILIPPINESPhilippine Airlines and Avation agreed on terms for PAL to retain the use of a Boeing 777-300ER aircraft on lease from Avation.

Philippine Airlines had announced that it would return 22 aircraft, mostly Airbus and Boeing jets to lessors as it pursues a financial restructuring program

The leasing company has also agreed to support PAL's restructuring process, under which Avation will be entitled to receive payments relating to utilization since 01-Sep-2020 on power by an hourly basis and a promissory note for a portion of rent outstanding, for the period prior to 01-Sep-2020.

The lease will continue to its original scheduled termination, following an initial period on a power-by-the-hour basis the lease will revert to the current market rate fixed rents and maintenance reserves. As previously reported by CAPA, PAL entered a series of agreements with lenders, lessors, and aircraft and engine suppliers, as well as its majority shareholder, to restructure and reorganize its finances. The carrier has voluntarily filed for a pre-arranged restructuring under the US Chapter 11 process, to implement the consensual restructuring plan.