Airbus has won a huge order from Philippine Airlines (PAL) beating out US rival Boeing.
The European planemaker will supply 54 new jets as the Philippine flag carrier triples the size of its fleet over the next seven years.
It is restructuring its operations to become a low-cost airline in an attempt to regain dominance of the local market.
For this stage of fleet expansion, the airline has ordered 10 long-haul A330-300s and 44 jets from the A321 family, with delivery starting in 2013
The biggest ever fleet expansion in PAL’s 71-year history will take its fleet to around 140 planes
Asia’s oldest airline will pay Airbus in cash, with part of the money to come from bank loans, said President Ramon Ang. The carrier is also ready to issue more shares to fund the purchases, it said in a statement.
Boeing is still in the running for future purchases.
“The good Boeing planes we are looking at are the 777-300 ER and the upcoming 777-X. We’re also interested in the Boeing 787-9 Dreamliner,” Ang told reporters on the sidelines of the deal signing event in Manila.
“We have the option on whichever type of aircraft to go,” he said.