Philippines Airlines, controlled by banking and tobacco tycoon Lucio Tan, has announced plans to accelerate the modernisation of its fleet with orders for 20 Boeing 787-10 Dreamliners and 14 Airbus A350-1000 long-haul aircraft.
The agreements were announced during the ongoing Farnborough International Airshow in the United Kingdom, marking one of the most significant fleet expansion plans in the airline’s history.
Boeing Deal Includes 15 Firm Orders and Five Options
Under the agreement signed on Monday, Philippines Airlines has committed to purchasing at least 15 Boeing 787-10 Dreamliners, with an option to acquire an additional five aircraft.
According to the airline, the aircraft are scheduled to be delivered between 2031 and 2034. The new Dreamliners are expected to strengthen the carrier’s medium- and long-haul network while improving operational efficiency and passenger comfort. The aircraft will be powered by GE Aerospace’s GEnx-1B engines.
Airbus Agreement Adds 14 A350-1000 Aircraft
Philippines Airlines signed a separate memorandum of understanding with Airbus on Tuesday for the acquisition of nine Airbus A350-1000 aircraft, with options to purchase an additional five.
The aircraft are expected to be delivered between 2034 and 2036 and will serve as the airline’s flagship aircraft for long-haul operations. The A350-1000 aircraft will be equipped with Rolls-Royce Trent XWB-97 engines.
According to the airline, Philippines Airlines is currently the first and only airline in Southeast Asia to operate the A350-1000. The aircraft has helped expand the carrier’s long-haul reach, particularly to destinations in North America.
Orders Could Be Worth Billions of Dollars
Philippines Airlines has not disclosed the financial terms of either agreement. However, estimates cited by Simple Flying suggest that the Boeing order could have a list value of up to $7.1 billion.
The listed price of a Boeing 787 Dreamliner can reach approximately $355 million, although airlines typically pay significantly less after negotiated discounts. Similarly, the Airbus order could have a list value of up to approximately $5.1 billion, according to estimates.
The actual transaction value is expected to be lower than the catalogue prices due to commercial discounts and other contractual arrangements commonly negotiated between airlines and aircraft manufacturers.
Airline Rebuilds After Chapter 11 Bankruptcy Process
The fleet expansion marks a significant turnaround for the 85-year-old airline, which faced severe financial difficulties after the COVID-19 pandemic brought international air travel to a near standstill.
Philippines Airlines successfully emerged from the Chapter 11 bankruptcy restructuring process in the United States in December 2021. As part of the restructuring, the airline reduced more than $2 billion in debt and secured additional capital to support its recovery.
The airline later raised $300 million through its first bond sale following its emergence from the restructuring process. The new capital has supported the carrier’s fleet expansion and modernisation strategy.
Chapter 11 is a legal restructuring process that allows a financially distressed company to reorganise its debts and operations while continuing to operate, rather than shutting down completely.
Investment Reflects Confidence in Future Air Travel Growth
Lucio Tan III, chairman of Philippines Airlines Holdings and grandson of business magnate Lucio Tan, said the investment reflected the group’s confidence in the future of the airline and the continued growth of air travel.
He said the Boeing 787-10 would strengthen the airline’s medium- and long-haul fleet while providing passengers with an enhanced travel experience and improving operational efficiency.
The new aircraft are expected to help the airline respond to growing passenger demand while replacing older aircraft and strengthening its competitiveness in the international aviation market.
Philippines Airlines Expands Global Network
Philippines Airlines currently operates a fleet of more than 80 aircraft and serves destinations across the Philippines, Asia, North America, Australia and the Middle East. The airline operates flights to approximately 40 international destinations, in addition to its extensive domestic network. Following record profits in 2023, the carrier has pursued an aggressive fleet expansion strategy since 2024. The latest Boeing and Airbus agreements represent a major step in its long-term plan to expand capacity and modernise its fleet.
Lucio Tan Group Has Broad Business Interests
Philippines Airlines is part of a wider business empire controlled by Lucio Tan, one of the Philippines’ wealthiest individuals. Through the LT Group, Tan has major investments in banking, beer, tobacco and real estate, in addition to aviation. According to Forbes, Lucio Tan has an estimated net worth of approximately $2.9 billion and remains one of the Philippines’ most prominent business figures.
