Philippine Airlines signed an agreement with Bombardier Commercial Aircraft Inc. to acquire an additional seven Q400 new generation aircraft for $235 million.
“As we position ourselves for growth, we are pleased to be adding more Q400 to our fleet,” PAL president and chief operating officer Jaime Bautista said Tuesday.
PAL in December placed an original order for five Q400s and acquired purchase rights for an additional seven.
PAL is expected to take delivery of the world’s first dual-class, 86-seat Q400 aircraft in July to be utilized on specific domestic routes.
The remaining four Q400 aircraft will be delivered until November this year.
“We are thrilled about the opportunities that lie ahead, and we look forward to offering more capacity and improving connectivity in the region with comfortable, fast and efficient regional aircraft like Bombardier’s 86-seat turboprops,” Bautista said.
Bombardier Commercial Aircraft president Fred Cromer said the Q400 aircraft had helped airlines around the world expand their networks and capture new opportunities.
Bombardier has recorded a total of 585 firm orders of Q400 aircraft.
“We are delighted that Philippine Airlines is growing its fleet with more Q400 aircraft, and are confident that the airline will benefit from the aircraft’s outstanding economics and performance,” Cromer said
PAL currently owns four Bombardier DHC 8-300 aircraft and five Bombardier DHC 8-400 aircraft which PAL dry leased to sister company PAL Express. A dry lease is a leasing arrangement where an airline provides an aircraft, without crew, to another airline.
PAL Express uses these aircraft to fly to provincial destinations.
PAL’s domestic network, including those operated by PAL Express, covers 31 cities and towns in the Philippines.
It serves the following domestic destinations: Bacolod, Basco, Butuan, Busuanga, Cagayan, Calbayog, Catarman, Caticlan, Cebu, Cotabato, Davao, Dipolog, Dumaguete, General Santos, Iloilo, Jolo, Kalibo, Laoag, Legazpi, Manila, Masbate, Naga, Ozamiz, Puerto Princesa, Roxas, Surigao, Tablas, Tacloban, Tagbilaran, Tuguegarao and Zamboanga.
The airline led by tycoon Lucio Tan expects delivery of two Boeing 777-300 ER in December and ordered six A350s, with an option for six more.
The aircraft is capable of flying non-stop from Manila to New York. The additional B777-300 ERs will be deployed to the London and North American routes.
PAL’s parent firm PAL Holdings Inc. earlier posted a net loss of P904.7 million in the first quarter, a reversal from a P2.71-billion income last year.