PAL Out of US

Travel News Asia
September 8 – September 21,1997

PHILIPPINE Airlines (PR) has suspended its flight to Los Angeles via Seoul to New York.

PR said it had fallen foul of a United States Federal Aviation Administration (FAA) ruling barring the Philippines from expanding to other destinations in America.

PR has been losing on the expanded routes. It was not clear whether the losses were due to the FAA ruling or spiraling costs.

Under the FAA ruling, any Philippine carrier is prohibited from increasing its flights as well as introducing new services in the US unless it uses aircraft-leased from Category 1 countries, such as the US. – Sol Villa, Manila