Philippine Airlines set for major fleet expansion with Boeing and Airbus orders
Philippine Airlines' Strategic Aircraft Orders and Industry Implications
By Tim Hepher and Karen Lema
Major Fleet Expansion Plans
PARIS/MANILA, July 10 (Reuters) - Philippine Airlines (PAL) is poised to order 15 Boeing 787-10 aircraft and nine Airbus A350-1000 jets, marking its first Boeing purchase in almost 20 years, industry sources said on Friday.
Announcement and Engine Supplier Competition
The orders are expected to be announced at the Farnborough Airshow this month. The decision to include the Boeing 787 will automatically trigger a separate engine contest between Britain's Rolls-Royce and U.S. giant GE Aerospace.
Responses from Manufacturers and the Airline
Airbus and Boeing declined to comment on commercial discussions.
Philippine Airlines said it could not provide information on potential fleet acquisitions.
Background and Market Context
The deal comes after the airline's president disclosed at an industry summit in June that the airline planned to order new planes in the next couple of months.
Bloomberg News reported earlier this week that the carrier had opted to split an order for about 20 planes between Airbus and Boeing.
Current Fleet and Competitive Landscape
PAL currently has a mixed wide-body fleet of predominantly previous-generation Airbus A330s and Boeing 777s as well as a handful of the newer A350s.
The 787-10 competes most directly with Airbus's upgraded A330neo model.
Broader Industry and Economic Factors
Trade Relations and Expansion Initiatives
Following a global showdown over tariffs, Washington is seeking to narrow its trade deficit with the Philippines which stood at nearly $5 billion in 2024. The Philippines has pledged to increase imports from the United States.
At the same time, PAL is expanding as the country plans a new airport and last month announced plans to join the oneworld Alliance, ending its isolation from major airline groupings.
Reporting Credits
(Reporting by Tim Hepher, Karen LemaEditing by David Goodman and Sharon Singleton)
