Philippine Airlines said Wednesday it signed a deal with Airbus Group SE to acquire six A350-900 jets worth $1.8 billion, with an option to buy six others, to support its international expansion.
Asia’s first airline signed a memorandum of understanding with Airbus for the order of six A350-900s for $1.83 billion, with six purchase options, worth another $1.83 billion, or for a total of $3.66 billion at the sidelines of Singapore Airshow.
The list price for each A350-900 aircraft was $304.8 million.
“After a thorough commercial and technical evaluation, we decided the A350 will best meet the requirements of our expanding operations,” PAL president and chief operating officer Jaime Bautista said in a statement.
Bautista said the A350’s range capability was an important factor in the decision and would enable the airline to offer non-stop service on all premium long-haul routes.
A350-900, which will have a three-class configuration (business class, premium economy and regular economy) is capable of flying non-stop from Manila to New York on a full load.
PAL was debating between Airbus’s A350 and Boeing’s 787 Dreamliner, Bautista said last year.
PAL plans to deploy the A350 XWB (extra wide body), which seats more than 300, on new routes to North America and Europe. The first A350 is scheduled to be delivered in 2018.
Airbus president and chief executive Fabrice Bregier said A350 XWB set new standards, combining extra-long range capability with the lowest operating costs of any aircraft in the larger twin-aisle category.
“Passengers flying with PAL can look forward to the new levels of comfort offered by the aircraft, with a wider and quieter cabin, and more personal space for all,” Bregier said.
PAL also signed a $600-million order with Rolls-Royce for Trent XWB engines to power the six A350.
The Trent XWB is the world’s most efficient engine flying today and the fastest-selling wide body engine with more than 1,500 engines sold to 41 customers. PAL currently uses Trent 700 engines for its fleet of 15 A330 aircraft.
A350 is the world’s latest generation airliner, featuring the most modern aero-dynamic design, carbon fiber fuselage and wings. With the Trent XWB engines, the A350 operates at 25 percent less fuel burn and emissions, significantly lowering maintenance costs. The extra-wide cabin provides passengers more personal space in all classes.
Airbus recorded 777 firm orders for the A350 XWB from 41 customers worldwide, making it one of the most successful widebody aircraft on record.
PAL, now wholly-owned by tycoon Lucio Tan after he bought back a 49-percent stake that San Miguel Corp. purchased from him in 2012, posted a comprehensive income of P6.55 billion in the first nine months of 2015, up from P169.1 million in 2014.
PAL Holdings attributed the sharp increase in comprehensive income during the period to strong revenues, which rose 10.8 percent to P81.98 billion from P73.98 billion in 2014.
PAL’s passenger revenues rose 12.5 percent to P68.37 billion in the first nine months of 2015 from P60.78 billion a year earlier. With Vito Barcelo, Bloomberg