Philippine Airlines (PAL.PS) has agreed to buy another $2.5 billion worth of Airbus jets from European Aeronautic Defence and Space Company NV (EAD.PA), its president said on Friday, part of the fast-growing carrier's attempt to reclaim dominance of its local market.
The new deal involves the purchase of 10 wide-bodied jets with a list price of $250 million each, Ramon Ang told reporters, on top of the airline's $7 billion Airbus deal with announced in August.
"We are starting to replace our jets with wide-bodied planes because that is what the market wants," Ang told reporters on the sidelines of parent company PAL Holdings Inc's stockholders' meeting.
PAL still wants to buy 35 more planes, either from Airbus or Boeing Co (BA.N), Ang said, in line with its plan to add 100 new jets to its fleet in the next five to seven years as it reshapes its business to take on main rival Cebu Air Inc (CEB.PS).
"Our refleeting program right now is close to $10 billion," Ang said. "We exercised our option to buy 10-wide bodied jets (from Airbus) two weeks ago", he said, referring to the new purchases.