NEWSFLASH

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GERMAN, JAPANESE FUNDING FOR PAL AIRBUS

Makati City, Dec. 2, 1997 - Philippine Airlines has concluded financing agreements with a German Bank and a Japanese consortium to fund the acquisition of two brand new Airbus A320s. The agreements were with Frankfurt-based Kreditanstalt fur Wiederaufbau and a Japanese consortium led by Marubeni Corp.

"These agreements very clearly show the confidence of the international financial community in the future of Philippine Airlines," said PAL president Jose Antonio Garcia.

The latest loan agreements round out PAL's financing requirements for its aircraft order this year. PAL has so far secured financing for 13 brand-new aircraft over the last six months as its ambitious 36-plane refleeting program reaches the halfway mark.

All but one of PAL's 13 Airbus aircraft have been delivered and are already in service.

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