PAL aircraft order in focus after diplomatic disputes

Local carrier Philippine Airlines (PAL) announced on Tuesday, August 28, that it has placed US$7-billion order for 54 new aircraft from Airbus — a move that, according to Reuters, adds to the list of impact of the diplomatic dispute between the Philippines and China, and US’s role in that dispute. Analysts had said that Airbus – originally a consortium between France, Germany, Britain and Spain – benefits from this rocky relations between China and Asian nations as European nations push for major contracts for Airbus in Asia. The territorial spat in the South China Sea appears to have made a dent on the chances of American firm Boeing to secure all the planned 100 aircraft orders from PAL. Reuters said there had been significant “commercial and political pressure” on PAL to secure a deal with Boeing. Both aircraft makers are locked in a global contest for market share. Philippine carriers are implementing expansion and refleeting plans to deal with jet fuel price hikes and aggressive industry growth targets.

Read more on Rappler and Reuters.