Philippine Airlines (PAL) has agreed a new contract with AFI KLM E&M for the maintenance of GE90 and CFM56-5B engines.

Both parties met in Manila at the end of May to finalize the contract.

The GE90 powers the airline’s nine Boeing 777 aircraft fleet. AFI KLM E&M will support PAL with shop visits for the widebody engine for the remainder of its life in the carrier’s fleet. 

The CFM56-5B powers some of its Airbus A320 aircraft, which are typically used on PAL-operated domestic and regional routes.

Alvin Limqueco, senior vice president of supply chain management at Philippine Airlines, says: "PAL and AFI KLM E&M have kept strong communication lines during the pandemic, and we look forward to continuing our robust ties as they continue to support our fleet requirements in the future through this extended agreement."

The new maintenance arrangements come at a time of change for PAL, which, after enduring a challenging four years of losses, returned to profitability last year.

At the end of 2021, PAL completed a debt restructuring plan after filing for a chapter 11 at the height of the COVID-19 pandemic in which it committed to cutting debts by $2 billion.

As part of the restructuring proposal, PAL's billionaire owner Lucio Tan agreed to inject $505 million of capital into the business.

The airline also confirmed plans to reduce its fleet size from 92 to 70 aircraft.