Bloomberg: Philippine Airlines set for first Boeing order since 2007

Insider Spotlight

• Sources said the airline is leaning toward a split widebody order of about 10 Boeing 787s and 10 Airbus A350s.
• Bloomberg said the deal could be announced during the Farnborough International Airshow starting July 20.
• Philippine Airlines chief operating officer Carlu Fernandez said the airline has yet to finalize its plans.

Philippine Airlines is preparing to place its first direct aircraft order with Boeing Co. since 2007, according to a Bloomberg News report citing people familiar with the matter.

The international wire agency reported the carrier is leaning toward splitting a multibillion-dollar widebody aircraft purchase between Boeing and Airbus SE, marking a significant fleet expansion as demand for long-haul travel continues to recover.

According to Bloomberg News, PAL is planning a firm order for about 10 Boeing 787 Dreamliners and 10 Airbus A350 aircraft, although the report said the airline is still finalizing the details and the final composition of the order could change. It cited people who requested anonymity because the discussions are confidential.

Sought for comment by InsiderPH, Philippine Airlines chief operating officer Carlu Fernandez said the airline has yet to finalize its plans.

“No final decision here yet. We’re still in the process,” he said.

The big picture

Bloomberg reported the airline is targeting an announcement at the Farnborough International Airshow in the United Kingdom, which opens on July 20 and is one of the aviation industry’s biggest events for commercial aircraft orders.

Representatives for Philippine Airlines, Boeing and Airbus declined to comment, according to Bloomberg News.

Why it matters

If completed, the agreement would represent Boeing’s first direct aircraft sale to Philippine Airlines in nearly two decades, giving the US manufacturer a larger presence in a market where Airbus currently dominates commercial fleets.

Bloomberg, citing Cirium Ltd. data, reported that fewer than 10 percent of commercial aircraft operated by Philippine carriers are Boeing jets. A Boeing win would therefore help maintain the manufacturer’s footprint in the Philippines despite strong Airbus market share.

By the numbers

Philippine Airlines ended last year with a fleet of 82 aircraft, based on its annual report. The fleet includes 10 Boeing 777 aircraft and four Airbus A350s serving long-haul routes, alongside 11 Airbus A330s operating across the Asia-Pacific region.

The planned order would support the airline’s long-term expansion, aided by the development of a proposed $15-billion Bulacan airport project.

Last month, Philippine Airlines signed an agreement in June to join the Oneworld global airline alliance.

Story updated to include comments from Philippine Airlines COO.

— Edited by Daxim L. Lucas