Philippine Airlines has just announced a new aircraft order with Boeing, and it’s a plane that seems like a great fit for the carrier.
Philippine Airlines orders up to 20 Boeing 787 Dreamliners
Philippine Airlines has signed a Memorandum of Understanding (MoU) with Boeing for the acquisition of up to 20 787-10 aircraft, with the order expected to include 15 firm orders and five options. The catch is that we’ll have to be patient, as the expectation is that the planes will be delivered between 2031 and 2034, best case scenario. So don’t expect to see one of these planes flying until around five years from now.
For context, the 787-10 is the largest variant of the Dreamliner. While it has the least range of any 787 variant, the per-seat economics are great, given how it’s “stretched.” Philippine Airlines intends to use the plane for both medium and long haul flights.
The agreement was announced at the start of the Farnborough International Airshow. This marks the carrier’s first Boeing aircraft order since 2007, as the airline has increasingly switched to Airbus for both narrow body and wide body aircraft. So that’s a pretty big win for Boeing, after nearly two decades.
Here’s how Lucio C. Tan III, CEO of PAL Holdings, describes this development:
“This investment manifests our confidence in the future of Philippine Airlines and the continued growth of air travel. The Boeing 787-10 will strengthen our medium and long-haul fleet, allowing us to provide an even better travel experience for our customers while improving operational efficiency and supporting our long-term sustainability goals. As Asia’s first and longest serving airline, we proudly celebrated our 85th anniversary earlier this year. An equally meaningful milestone that we celebrate this year is 80 years of partnership between Philippine Airlines and Boeing.”
The Boeing 787-10 seems like a great fit for Philippine Airlines
For context, Philippine Airlines’ fleet currently consists of 51 aircraft, including 26 Airbus A321s (18 A321ceos, eight A321neos), 11 Airbus A330-300s, four Airbus A350s (two A350-900s, two A350-1000s), and 10 Boeing 777-300ERs. On top of that, the airline otherwise has 13 A321neos and seven A350-1000s on order.
Philippine Airlines has been through quite a few “phases” in terms of growing vs. shrinking. The airline now once again seems to be in growth mode, trying to improve its passenger experience, and become more of a global carrier. Keep in mind that it’s also joining the oneworld alliance, which is supposed to help with that.
The Boeing 787-10 seems like the obvious choice for the airline. For one, the Philippines is a very high volume market, and the attractive per-seat operating costs will come in handy. Furthermore, we’ve seen impressive improvements to the 787-10’s range, to the point that the plane could now fly from Manila (MNL) to some of the carrier’s North America destinations, including Seattle (SEA) and Vancouver (YVR).
I am curious to what extent these planes will be used for growth rather than fleet renewal. For example, the carrier’s A330s and 777s are an average of around 12 years old. So while those planes aren’t necessarily close to retiring, one imagines that some long term plans will have to be made there. Could we see either or both fleet types replaced by the 787s?
Bottom line
Philippine Airlines intends to modernize its fleet significantly, as the airline is ordering up to 20 Boeing 787-10s, including a firm order for 15 jets, plus five options. This is just an MoU for now, and planes are expected to be delivered between 2031 and 2034.
This is a logical fit for Philippine Airlines’ fleet, given the plane’s great per-seat economics. My question now is just how much growth the airline is planning, and whether these planes will replace the A330s and/or 777s.
What do you make of Philippine Airlines’ Dreamliner order?