PAL orders 10 Airbus planes

MANILA, Philippines – Flag carrier Philippine Airlines (PAL) is purchasing 10 more wide-bodied aircraft worth US$2.5 billion from Airbus.

PAL President and Chief Executive Officer Ramon S. Ang said the additional 10 aircraft are Airbus A330s, and 8 of them will be delivered in 2013.

This is on top of the $7-B deal that PAL signed with Airbus in August for the purchase of 54 aircraft that consists of 34 single aisle Airbus A321s; 10 Airbus A321 neo (New Engine Option); and 10 twin-aisle A330-300.

The flag carrier will start receiving the 34 Airbus aircraft in the second half 2013. These planes will be used for its regional and mid-range flights, including the Middle East.

“The first batch we ordered from Airbus is 54 aircrafts. We exercised another option for 10 wide-bodied aircraft two weeks ago. The list price is $250 million each. We will be operating more wide-bodied planes in the region because that’s what the market wants,” Ang said.

“These are modern aircraft that will replace most of our existing fleet. It will bring the down the cost tremendously. Right now our maintenance and fuel costs are so high. By replacing them with modern wide-bodied aircraft we are projecting to save by at least 20% of cost on revenues,” he said.

Boeing planes arriving

Ang also said PAL will get another Boeing 777 aircraft in November this year, its fourth among the 6 units scheduled for delivery until 2013.
 
The first two Boeing777 units arrived in November 2009 and January 2010 while the flag carrier took delivery of the third unit last June this year. The Boeing 777-300ER aircraft arrived in Manila from Seattle, Washington where the plane manufacturer is based.

“We have 3 more Boeing 777 units coming. One in November and the two by next year,” he said.

The flag carrier will implement a system-wide redeployment of its fleet toward the end of the year to save as much as $300 million per year. – Rappler.com