Philippine Airlines (PAL) is preparing to announce an order for Boeing 777-300ERs for delivery from 2009.
Industry sources say PAL has selected the twinjet over the four-engined Airbus A340-600 and purchase and lease agreements could be announced as early as next week.
The sources say the carrier will be taking two of the type through a purchase agreement with Boeing as well as two on lease from GE Commercial Aviation Services (GECAS).
It will also be taking two options from Boeing. The first aircraft from the order is due to arrive in 2009. Final terms of the Boeing portion of the deal have been finalised while the GECAS agreement remains in the form of a letter of intent.
PAL president and chief operating officer Jaime Bautista said in an interview at the annual meeting of the member carriers of the Association of Asia Pacific Airlines in Osaka, Japan that a widebody aircraft order announcement could come as early as this week. He declined to confirm, however, that the 777-300ER has been chosen over the A340-600.
The new aircraft will be used mainly for existing and new US services, he says, adding that they will be for both growth and replacement purposes.
PAL’s widebody fleet currently comprises eight Airbus A330-300s, four Airbus A340-300s and five Boeing 747-400s, and commonality with its existing Airbus fleet was originally seen as something working in the A340-600’s favour during the competition.
One of the leased 747-400s is due to be returned to its owner in 2009, says Bautista.
The purchase agreement with Boeing is believed to include the cancellation of four 747-400s from a more than 10-year-old order that PAL has long sought to walk away from.
PAL fell into serious financial difficulty in the late 1990s and tried to cancel the order but Boeing declined to agree to it without sizeable penalties being paid and it officially remains in the manufacturer’s orderbook.
Source: FlightGlobal.com
