Philippine Airlines (PAL) is close to finalizing its first direct order with American manufacturer Boeing since 2007. The Southeast Asian carrier plans to split a multi-billion-dollar long-haul aircraft deal between Boeing and Airbus, a key strategy aimed at securing its long-term growth.
A Split Order to Boost Long-Haul Operations
According to sources close to the negotiations who spoke to Bloomberg, the Philippine flag carrier is opting for a mixed-fleet strategy to renew and expand its long-distance routes. The preliminary agreement is expected to comprise:
- 10 Boeing 787 Dreamliners, marking the airline’s return to direct purchases from the U.S. manufacturer.
- 10 Airbus A350s, reinforcing its relationship with the European planemaker.
While final details are being consolidated and the definitive structure of the order could still vary, the official announcement is anticipated to take place at the Farnborough International Airshow in the United Kingdom. One of the industry’s premier aerospace events, the airshow is scheduled to begin on July 20.
→ Boeing Expands 737 MAX Production with Activation of New Everett Assembly Line
Strategic Impact on the Philippine Market
This agreement represents a highly significant commercial milestone for Boeing. Currently, the commercial aviation market in the Philippines is heavily dominated by Airbus; in fact, fewer than 10% of the commercial jetliners in service across the country were manufactured by the American aerospace giant.
Securing a portion of this contract not only allows Boeing to establish a stronger foothold in the region but also represents a major commercial victory amid ongoing trade tensions, which have been fueled by tariffs imposed on the islands by U.S. President Donald Trump.
Current Philippine Airlines Fleet Status
The carrier’s current fleet totals 85 aircraft, broken down as follows:
- 11 De Havilland Canada DHC-8-400s
- 19 Airbus A320s
- 30 Airbus A321s
- 11 Airbus A330s
- 4 Airbus A350s
- 10 Boeing 777s
Infrastructure and Alliances: The Future of Philippine Airlines
This massive investment in seating capacity and fuel efficiency will serve as the anchor for the airline’s future growth, which will be further propelled by the development of a new $15 billion airport project near Manila.
In addition to expanding its fleet, the airline made a strategic international move last June by signing an agreement to join the Oneworld global airline alliance, aligning itself with major global carriers such as American Airlines, Iberia, and British Airways.
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