Philip­pine Air drops pos­si­ble plane or­der as mar­ket slows

The Pak Banker - - BUSINESS -

MANILA: Philip­pine Air­lines may make an an­nounce­ment of new air­craft or­ders at the Sin­ga­pore Air­show as plane­mak­ers Air­bus Group SE and Boe­ing Co. seek to re­vive sales in a re­gion bat­tling over­ca­pac­ity. The flag car­rier is con­sid­er­ing Wed­nes­day for its an­nounce­ment, Pres­i­dent Jaime Bautista said in an in­ter­view Sun­day in Sin­ga­pore. Bautista de­clined to com­ment on what model the car­rier has cho­sen. The air­line was con­sid­er­ing buy­ing six air­craft in a firm or­der, with an op­tion to buy six more, Bautista said in Novem­ber.

Philip­pine Air was de­bat­ing be­tween Air­bus's A350 wide-body air­craft and Boe­ing's 787 Dream­liner to start ser­vices to New York, Bautista said in an in­ter­view last year. An or­der dur­ing the Sin­ga­pore Air­show, which starts Tues­day, will come amid con­cerns that air­lines in South­east Asia have or­dered more planes than they need. On Sun­day, In­ter­na­tional Air Trans­port As­so­ci­a­tion Pres­i­dent Tony Tyler said South­east Asian air­lines may de­fer plane or­ders as they bat­tle over­ca­pac­ity and in­tense com­pe­ti­tion among half a dozen low-fare car­ri­ers. Bud­get air­lines in the re­gion have gar­nered 54 per­cent mar­ket share, more than twice the global av­er­age, Tyler said.Philip­pine Air wants new planes to re­place some of its Air­bus A340 jets as it mulls ex­pand­ing U.S. and Europe routes. Air­bus has agreed to help the air­line re­struc­ture its fleet, which in­cludes de­liv­er­ing a to­tal of 10 A321s and 28 more planes in the next seven to eight years, Bautista said last March.

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