PAL Airlines (previously known as Aerolinea Principal Chila SA) was a carrier that operated scheduled domestic services within Chile utilising narrowbody jet and turboprop equipment. PAL Airlines was based in Santiago, Chile. CEO Fernando Musiet confirmed the carrier has indefinitely suspended operations "until we see that it is possible to be profitable". Mr Musiet said the carrier has been affected by unfavourable macroeconomic conditions in Chile, which include a slowdown in mining activity, as well as rising fuel costs. Regulator DGAC suspended the PAL due to unpaid aeronautical charges, while the carrier's debt reportedly exceeds USD10 million. PAL's maintenance centre is the carrier's primary asset and will reportedly continue operating.
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