PAL Nearing Deal To Acquire Airbus A350s

Philippine Airlines is reported to be close to announcing a deal to secure about half a dozen Airbus A350s to serve US and European long-haul flights.

The deal for Airbus A350-900s, likely to be announced at this week's Singapore Airshow, would be valued at about USD$1.8 billion at list prices.

PAL and Airbus declined to comment.

"PAL will announce in due time its fleet orders which will add to its existing roster of aircraft," the airline said.

PAL President Jaime Bautista said last year it was a choice between the A350 and Boeing 787.

PAL's order comes at a time when rival Cebu Pacific is also expanding its local routes.

PAL is acquiring more aircraft as it grows its international network to cater to increased demand from millions of Filipinos working overseas.

PAL's expected fleet acquisition underscores the buoyant outlook for Southeast Asia's fifth-largest economy as it bucks a global slowdown. It is forecast to expand by 6 percent this year - one of the fastest growth rates in Asia.

However, there are concerns among manufacturers gathering in Singapore that overall demand for new aircraft is slowing after a record wave of orders.

The Philippines' fourth richest man, Lucio Tan, began a review of PAL's operations after taking over the airline's management in 2014.

PAL and its budget unit operate about 60 Airbus, six Boeing and around nine Bombardier planes.