Air Transport World

PAL IN TROUBLE, CANCELS 747S.

Philippine Airlines, reacting to the downturn in Asia, said it will not take the six 747-400s it has on order. It has also agreed to defer the arrival of three of the eight A32Os it ordered by 1-2 years. If PAL does not take delivery of the Boeing planes, the default will be Asia's first.

In a letter sent to staff in early March, PAL President Jose Antonio Garcia compared the carrier with a 'sick man," surviving on a day-to-day basis.

"Due to the recent currency crisis in the region, [PAL] is in serious financial trouble and will not survive unless we take drastic steps," the letter quotes Garcia. …

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