Philippines to lift travel ban on UAE and India
Aims to cut $2b in borrowings through a proposed restructuring plan
Philippine President Rodrigo Duterte is lifting a coronavirus ban on travellers from 10 countries including the UAE, India and Indonesia, the presidential spokesperson said yesterday.
The ban, introduced in April then expanded to more countries in July to prevent the spread of the more contagious Delta variant, will be lifted tomorrow, presidential spokesperson Harry Roque said in a statement.
Travellers from India, Pakistan, Bangladesh, Sri Lanka, Nepal, the UAE, Oman, Thailand, Malaysia and Indonesia will have to spend 14 days in quarantine upon arrival, Roque said.
“International travellers coming from the above mentioned countries shall, however, comply with the appropriate entry, testing, and quarantine protocols,” Roque said in a statement.
However, foreign tourists are still banned from entering the country except for holders of special visas such as diplomats and foreign spouses of Filipino citizens.
The local transmission of the Delta variant has spread to communities in the Philippines. The country has detected 1,789 Delta cases and 33 deaths so far.
Philippine Airlines Inc filed for Chapter 11 bankruptcy in New York with a lender-supported plan that helps the carrier recover after the pandemic devastated global travel.
The company aims to cut $2 billion in borrowings through a proposed restructuring plan, which needs court approval, it said. Philippine Airlines will also get $505 million in equity and debt financing from its majority shareholder, as well as $150 million of debt financing from new investors. The carrier said it has support agreements from 90 per cent of its lenders.
The restructuring plan will allow the carrier to reduce its fleet capacity by 25 per cent, it said. The “recovery plan” will allow the airline to return at least 20 aircraft, while it will have to cut 35 per cent of its workforce, the company’s management said in response to a Bloomberg News query.
‘Major breakthrough’
Chapter 11 lets a company continue to operate while it restructures. The filing on Friday comes after the airline spent months negotiating with its stakeholders. Billionaire owner Lucio Tan called the filing a “major breakthrough” for the carrier.
The restructuring plan allows the airline “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,” Tan, who’s the chairman and chief executive officer, said in a statement.
While an end to lockdowns eased the strain on travel at the start of the summer season in the Northern Hemisphere, the delta variant of Covid-19 has recently begun hurting many airlines, especially in the US and China. Tan has said that the airline, which was founded in 1941, was working on a comprehensive restructuring plan.
Philippine Airlines is the latest international carrier to reorganise in the United States, under US bankruptcy code. By using Chapter 11, the company will subject its reorganisation plan to the final decision of a US judge.