PAL on Sunday began international flights for the first time since shutting down on September 24. An Airbus 320 flew president Joseph Estrada to Singapore on his first foreign trip after taking office in June. "It's a `Go'," PAL executive vice-president Manolo Aquino said on Sunday, referring to the financially distressed flag carrier's plan to resume international operations on October 15 after a 13-day closure.

Problems with the US creditors may force PAL to use the smaller Airbus 340-300 instead of its two leased Boeing 747-400 planes in swings to Los Angeles and San Francisco, which have large Filipino communities. "We have a problem with Eximbank (US Export-Import Bank)," Aquino said. "They want to take (the airplanes) back. We're negotiating with them right now." PAL is seeking to halt thetermination of leases on two Boeing 747-400s financed by Eximbank, one of several US creditors to whom the airline owes about $400 million.

Aquino said PAL wanted to use the jumbos for the peak travel season later in the year.