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Manila Bulletin devider Business devider The Stock Market devider PAL expands Airbus maintenance deal to anchor international growth

PAL expands Airbus maintenance deal to anchor international growth

Published Feb 9, 2026 02:40 pm
Philippine Airlines (PAL) has expanded a long-term maintenance agreement with Airbus SE to cover its entire fleet of European-made aircraft, as the flag carrier seeks to manage rising operational costs amid its aggressive international expansion.
PAL signed a new agreement with Airbus for its flight hour services (FHS) to further strengthen fleet maintenance and operational support for 63 of its aircraft.
Under the extended deal, Airbus will continue to provide component support for PAL through standard exchange, component repairs, component reliability, and engineering services.
Airbus will also deploy an on-site stock of aircraft spare parts necessary for repair works at PAL’s main hub at Ninoy Aquino International Airport (NAIA).
PAL and Airbus first formed a partnership for fleet maintenance in 2018, having signed the FHS contract in support of the airline’s A350-900 fleet.
This was later expanded in 2022 to cover A320 and A330 fleets as the carrier expanded its Airbus-manufactured fleets to serve new long-haul destinations.
With the new contract, Airbus is tasked to provide support to nine A350-1000, 11 A330 Family and 43 A320 Family jets operated by PAL.
“We thank Philippine Airlines for extending its flight hour services agreements across its entire Airbus fleet to cover the A350, A330 Family and A320 Family,” Airbus Asia-Pacific president Anand Stanley said in a statement.
“This demonstrates the strength of our long-standing partnership and our shared commitment to operational excellence,” he added.
Through the FHS program’s data-driven approach, Stanley said it would help PAL maximize its fleet performance while cutting total operating costs.
This comes at an opportune time for PAL after its consolidated expenses in the first nine months of 2025 grew by about four percent to ₱124.85 billion from ₱120.09 billion in the same period last year.
More than half the costs were related to flying operations, reaching ₱64.01 billion, while maintenance costs stood at ₱17.48 billion.
PAL has been deploying Airbus jetliners as it expands its international presence, primarily to destinations in North America.
Last month, the Lucio Tan-led airline officially unveiled its first Airbus A350-1000, becoming the first airline in Southeast Asia to operate the long-range widebody.
Five more A350-1000 aircraft are scheduled to join the fleet within the year, with the remaining three arriving in 2027. All nine will be serviced by Airbus’ FHS program.
Configured in a tri-class layout that accommodates 382 passengers, the aircraft will operate long-haul services to cities in the United States and Canada, including Los Angeles, New York, and Toronto.
PAL currently operates a fleet of 82 aircraft, serving domestic and international routes across Asia, North America, Australia, and the Middle East.
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