Philippine Air mulling Chapter 11, in talks to reduce its fleet

MANILA, May 15 (Bloomberg): Philippine Airlines Inc. is in talks with plane lessors about reducing its fleet size and has told them it’s considering a Chapter 11 filing in the US to carry out a restructuring, according to people familiar with the plan.

The airline could return at least two Airbus SE A350s to lessors and four of the 10 Boeing Co. 777s in its fleet, some of the people said, asking not to be identified as the information is private. Two A350s are in the process of being taken back by aircraft lessors and will be redeployed to other carriers, one person said. Prior to the negotiations, Philippine Airlines had six A350s.