SerpApi.Org
Philippine Airlines (PAL)—controlled by banking and tobacco tycoon Lucio Tan—said it’s ordering up to 20 Boeing 787-10 Dreamliner jets to modernize its fleet amid a travel boom.
Under a preliminary agreement signed during the Farnborough International Airshow in the U.K., the Philippine flag carrier committed to purchase at least 15 Dreamliners, with an additional five on option. The planes are scheduled for delivery between 2031 and 2034, Manila-based PAL said in a statement.
PAL didn’t disclose financial details of the deal, which could cost as much as $7.1 billion based on the aircraft’s list price. A Dreamliner can cost up to $355 million, but airlines typically pay $150 million to $200 million after discounts, according to Simple Flying.
The agreement with Boeing comes after PAL raised $300 million from its first bond sale after emerging from Chapter 11 bankruptcy proceedings in the U.S. in December 2021. The fresh capital will help fund the 85-year old airline’s fleet modernization and expansion. It will be PAL’s first order with Boeing since 2007, according to the airline.
“This investment manifests our confidence in the future of Philippine Airlines and the continued growth of air travel,” said Lucio Tan III, the tycoon’s grandson and president of PAL Holdings, PAL’s parent company. “The Boeing 787-10 will strengthen our medium and longhaul fleet, allowing us to provide an even better travel experience for our customers while improving operational efficiency.”
The 787 Dreamliner is part of a broader fleet modernization program to build a more efficient, sustainable, and competitive airline, PAL said. The planes will be fitted with GE Aerospace’s GEnx-1B engines, it added.
With a fleet of more than 80 aircraft, PAL operates across the Philippines and 40 international destinations in Asia, North America, Australia and the Middle East. It has been expanding and upgrading its fleet since 2024 after booking record profit in 2023 amid a post-pandemic travel rebound. In December, it ordered five additional Airbus A320 aircraft.
Aside from PAL, the tycoon’s interests include banking, beer, spirits, tobacco and real estate through his publicly listed LT Group. With a net worth of $2.9 billion according to Forbes real-time data, Tan is among the country’s wealthiest.
