Manila, Sep 4 (TIWN) The Philippine Airlines (PAL) has filed for Chapter 11 bankruptcy in the US to pursue a restructuring plan to keep the company afloat amid the Covid-19 pandemic, the flag carrier said on Saturday.

The national carrier of the Philippines said the filing will allow it to restructure contracts and cut debt by at least $2 billion while getting $655 million in fresh capital when it emerges from the Chapter 11 process.  PAL will also downsize its fleet by 25% and re-negotiate contracts to reduce lease payments.  "Philippine Airlines will continue business-as-usual operations while finalising the restructuring of our network, fleet and organisation," senior vice president and chief financial officer Nilo Thaddeus Rodriguez said in a video message.