Philippine Airlines Nears Major Fleet Renewal with Boeing, Airbus Orders

Philippine Airlines (PAL) is poised to place a substantial order for 24 new wide-body jets, splitting the acquisition between rivals Boeing and Airbus, according to a Reuters report citing industry sources. The deal would be a major step in the carrier's fleet modernization and expansion strategy.

Details of the Reported Order

The planned acquisition reportedly consists of two separate agreements:

• 15 Boeing 787-10 Dreamliners
• 9 Airbus A350-1000 aircraft

According to the sources, an official announcement is expected at the Farnborough Airshow later this month. The move is particularly notable as it would represent PAL's first purchase from Boeing in almost 20 years. The Boeing order will also initiate a separate competition between engine manufacturers GE Aerospace and Rolls-Royce to power the new 787s.

Strategic Context and Fleet Renewal

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The large order aligns with recent comments from PAL's president, who indicated at an industry summit in June that the airline would be ordering new aircraft in the coming months. This fleet renewal is a key part of the carrier's broader growth plans, which include a recently announced intention to join the oneworld Alliance.

PAL currently operates a mixed wide-body fleet that includes previous-generation Airbus A330s and Boeing 777s, alongside a small number of newer Airbus A350s. The new aircraft would significantly upgrade the airline's long-haul capabilities and efficiency. The deal also surfaces amid a pledge by the Philippines to increase imports from the United States to help narrow a trade deficit that stood at nearly $5 billion in 2024.

Market Implications

For the planemakers, a split order of this size represents a significant win for both sides in the highly competitive wide-body market. The choice of the Boeing 787-10 is a key development, as it competes directly with the Airbus A330neo, an upgraded version of a plane already in PAL's fleet.

As is standard practice during commercial negotiations, Philippine Airlines, Airbus, and Boeing all declined to comment on the potential deal, according to Reuters.