The FINANCIAL — Bombardier Commercial Aircraft announced on October 8 that it has finalized a firm purchase agreement with Philippine Airlines, Inc., flag carrier of the Philippines, consistent with the Letter of Intent announced on October 14, 2016.
The purchase agreement includes a firm order for five Q400 aircraft and purchase rights for an additional seven Q400 aircraft, according to Bombardier.
Based on the list price of the Q400 aircraft, the firm order is valued at approximately US $165 million and could increase to US $401 million, should Philippine Airlines exercise all its purchase rights.
“With the lowest seat-mile costs in the regional aircraft market, the extra-capacity, two-class Q400 aircraft will offer Philippine Airlines significant opportunities to differentiate itself competitively,” said Fred Cromer, President, Bombardier Commercial Aircraft. “The Q400 aircraft is the ideal solution for the airline as it develops its domestic operations network from secondary hubs and increases intra-island connectivity.”
“As we strive to become a top-rated airline, the Q Series family of aircraft has enabled us to develop our business model into one which efficiently meets our domestic route requirements while providing our passengers with a full service onboard experience”, said Jaime J Bautista, President and Chief Operating Officer, Philippine Airlines. “We are proud of our collaboration with Bombardier and welcome the first modern and innovatively configured two-class, 86-seat Q400 aircraft to our growing fleet.”
The five firm-ordered Q400 aircraft are expected to be delivered throughout 2017.
Bombardier’s customer support network for commercial aircraft in the Asia-Pacific region includes Regional Support Offices in Singapore, Narita (Tokyo), Sydney, Beijing, Shanghai and Mumbai, as well as Parts Depots in Sydney, Beijing and Singapore. Operating from the company’s regional office located in Singapore, Bombardier Commercial Aircraft’s sales and marketing team is well positioned to provide industry-leading solutions to its current and prospective customers.