Philippine Airlines signs deal for 44 Airbus A321s for US$7 billion

PHILIPPINE Airlines (PAL) has ordered 44 single-aisle A321 and 10 widebody A330-300s in a deal worth US$7 billion to support cargo expansion into the Middle East and Australia.

The deal is to be financed by cash, bank loans and a possible share sale in a re-fleeting move that will enhance its passenger and cargo services in domestic and regional routes with A321s. The widebody jets will enhance its network in the Middle East and Australia.

PAL chairman Lucio Tan and its president Ramon S Ang said, the aircraft will provide the best for its passengers on its Asia-Pacific network. "At the same time, we will benefit from the low operating costs associated with new generation aircraft and the reduced impact on the environment."

Delivery of four to six A330-300s and six to eight A321s will go to PAL and its budget carrier Airphil Express in 2013.

It expects to complete its 100 re-fleeting with 46 of Boeing's aircraft and is looking at 777-300ER, the upcoming 777-X and the Boeing 787-9 Dreamliner, said PAL in an interview by Manila-based Business World Online.