Airbus scores with $7b Philippine order

Manila/Paris: Airbus won a $7 billion (Dh25.7 billion) order to help more than triple Philippine Airlines Inc’s fleet, beating Boeing Co to a deal despite US support for Manila in a diplomatic dispute with China.

The flag carrier, which plans to buy up to 100 new aircraft in total within the next five to seven years as it fights to regain dominance of the local market, said it was still in talks with both Airbus and Boeing for its next tranche of planes.

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, Asia’s oldest airline said in a statement. The carrier is ready to issue more shares to fund its jet purchases, it said.

“The 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,” airline president Ramon 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.

One person familiar with the matter said there had been significant “commercial and political pressure” on the airline to secure a deal with Boeing.

Boeing and Airbus are already locked in a global contest for market share, in some cases more than halving prices to bolster orders of the newly revamped models of best-selling narrowbody jets, industry sources and analysts say.

With prestige, jobs and often influence at stake, experts say diplomacy is an occasional weapon in jetliner deals. Analysts say Airbus — originally a consortium between France, Germany, Britain and Spain — also benefits from diplomatic support from European nations for major contracts.

Former French presidents Jacques Chirac and Nicolas Sarkozy both regularly promoted Airbus overseas, especially in Asia. Airbus hopes to win orders to sell up to 100 A320 planes to China when German Chancellor Angela Merkel visits the country this week, industry sources said.

China regularly places three-figure plane orders tied to state events held with US or European leaders.