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UPDATE 1-Philippine Air says plans to lift aircraft purchases, to decide by year-end

Published 2015-11-23, 10:36 p/m
© Reuters. UPDATE 1-Philippine Air says plans to lift aircraft purchases, to decide by year-end
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* New jet orders could reach 12 from previously announced 8
* To decide on supplier before year-end
* New aircraft for U.S. and Europe long-haul flights

(Adds quotes, background, details)
By Neil Jerome Morales
MANILA, Nov 24 (Reuters) - Philippine Airlines Inc (PAL) is
in talks with Airbus Group SE AIR.PA and Boeing (N:BA) Co BA.N to
buy as many as 12 wide-body aircraft and will decide on the
purchase before the end of the year, the flag carrier's
President Jaime Bautista told Reuters.
PAL in August had said it was planning to buy eight planes,
but Bautista said the amount had increased to cater to growing
demand for long-haul flights to the United States and Europe.

Long-haul routes are the most profitable for PAL, which like
its regional peers is locked in intense competition with budget
carriers including Cebu Air Inc CEB.PS and the Philippine unit
of Air Asia Bhd AIRA.KL .
PAL will put firm orders for six aircraft worth around $1
billion for delivery in 2017 and 2018, with the option to buy
six more jets for 2019 and 2020 delivery depending on the growth
of the long-haul market, Bautista added.
"It's either the Boeing 787 or the Airbus 350. That is what
we are studying now," he said on the sidelines of a company
event late on Monday.
The Philippines' fourth richest man, Lucio Tan, last year
took over management of the airline and started a review of its
operations, which included jet retirement and purchases.

PAL and its budget unit operate 61 Airbus jets, six Boeing
aircraft and nine Bombardier BBDb.TO planes.

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