Philippine Air To Lift Aircraft Purchases

Philippine Airlines (PAL) is in talks with Airbus and Boeing to buy up to 12 wide-body aircraft and will decide on the purchase before the end of the year.

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 and the Philippine unit of Air Asia.

PAL will put firm orders for six aircraft worth around USD$1 billion for delivery in 2017 and 2018, with the option to buy six more 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 A350. That is what we are studying now," he said.

The Philippines' fourth richest man, Lucio Tan, last year took over management of the airline and started a review of its operations, which included aircraft retirement and purchases.

PAL and its budget unit operate 61 Airbus, six Boeing and nine Bombardier aircraft.