The U.S. Federal Aviation Authority (FAA) has downgraded the Philippines to category 2 from category 1 after inspections showed the Philippine Air Transportation Office (ATO) did not meet global safety standards. Under Category 2, PAL is prohibited from increasing its 33 flights a week to the US and its territories and from changing the type or increasing the number of aircraft used on these routes. Also to be affected is the delivery, beginning 2009, of six brand-new Boeing 777-300ER airplanes, to be deployed by PAL on the trans-Pacific flights.
PAL President Jaime Bautista said:
