PAL Reduces Further Airbus Orders

18 August 2014

Flag carrier Philippine Airlines (PAL) disclosed today that it is dropping eight (8) further option orders of A321NEO's due to capacity constraint at Ninoy Aquino International Airport (NAIA).

In a disclosure to Philippine Stock Exchange (PSE), the airline said that its orders from Airbus has dropped to 52 from the earlier 65 orders as it cancelled an option to acquire eight A321NEO aircraft in the first purchase agreement but agreed to acquire eight A321 NEO to cover the cancellation of five A330-300 option orders. PAL has until 2017 to exercise its right to purchase four additional A321NEO aircraft.  

In 2012, PAL entered into its first Purchase Agreement with Airbus for firm orders of 44 A321 aircraft orders (34 CEOs,10 NEO's) with options for 20 A321 NEO aircraft for delivery in fiscal years 2014 to 2020. 

Meanwhile, the airline also signed a second purchase agreement for a firm order of 10 A330-300 and options for another 10 for delivery in fiscal years 2014 to 2016. PAL and Airbus already agreed to an amendment last March wherein the number of order of A330-300 aircraft would be reduced to 15 instead of 20.

PAL accepted delivery of 12 aircraft in 2013 of the 2012 orders.  Airbus  will deliver 17 more aircraft in 2014, 15 in 2015, 10 in 2016, and two in 2017. 

Further A321NEO deliveries are cancelled, four in 2018 and four in 2019. But PAL has until 2017 to exercise its right to purchase four additional A321NEO aircraft options.  The manufacturer is set to complete wide-body orders this year.