Airbus Secured $1.8 Billion Contract From Philippine Airlines
Philippine Airlines and Airbus Group signed a Memorandum of Agreement (MOU) where the latter won the right to deliver six new aircraft worth $1.8 billion that will replace Philippine Airlines' A340 old models. The agreement comes with an option for six more additional orders that will enable non-stop travel from Manila to the U.S., Canada and Europe.
The agreement and announcement was held at the Singapore Airshow Wednesday where Philippine Airlines get the delivery of new A350-900 aircraft within two years. President and CEO of the Philippine carrier Jaime Bautista, said that the delivery will replace old models of A340 aircraft. The deal includes the option of purchasing additional six Airbus' latest jet built with wide body. The order value before discount is $308 million which is the list price of the said aircraft.
Based on a Bloomberg report, aircraft giants Mitsubishi Aircraft Corp., Boeing Co., ATR and Airbus made an announcement at the Singapore Airshow about the total order of $4.2 billion this week. On the same day, Chicago-based Boeing reveals an order with China's Okay Air valued at $1.3 billion.
Philippine Airlines' contract with the European aircraft maker worth $1.85 billion for the order of six A350-900s includes the option of ordering six additional more. According to Jaime Bautista, Philippine Airlines president, the new planes will be utilized for PAL's non-stop, long distance flights from Manila to the Europe, US and Canada, according to Inquirer.
During the past six years under the regime of President Benigno Aquino whose term ends in June, the country's economic growth averaged at 6.2%. This makes one of Asia's strongest performances reinforcing the travel demand. The airlines would become the key transportation connection of millions of Filipinos working abroad with a channel network tracking the key destinations of the labor paladin. The aircraft delivery will begin in 2018, as reported by asiaone.
"We are happy to announce that today we will commit to acquire six A350-900 series which will allow us... to fly non-stop from Manila to New York, allow us to increase our presence in the US, in San Francisco and Los Angeles, and also to Vancouver and Toronto," Bautista told a news conference.
Fabrice Brégier Airbus President & CEO, said: "We are pleased to welcome Philippine Airlines as the latest airline to select the all-new A350 XWB.
The new aircraft order will allow Philippine Airlines to operate the non-stop service of carrying passengers on the 8,000 nautical mile New York - Manila channel 365 days a year, fully loaded with passengers. The A350 wings are made at Broughton and Rolls-Royce provides the Trent XWB engines worth $600 million to power the new aircraft.