The Chances of Boeing Increasing its Presence in the Philippines

The Chances of Boeing Increasing its Presence in the Philippines

Boeing used to be a dominant force in the Philippines from the 1980s to the mid-2000s. Philippine Airlines operated the 747-400, 747-200, 737-400, and 737-300. Other airlines like Cebu Pacific, Air Philippines, and Grand Air also flew Boeing planes. However, the tides began to turn in the mid-2000s when Airbus started becoming the dominant fleet. But with all the current issues surrounding Airbus and the A320neo family, will Boeing re-establish a stronger presence in the Philippines?

The Presence of Boeing in the Philippines

Currently, the only operator of Boeing planes is PAL, with ten (now nine) 777-300ERs in the fleet. South East Asian Airlines still operates a Boeing 737-200C, which is a pure cargo aircraft. However, in the past, the majority of airlines operated Boeing planes.

Boeing used to be a dominant force in the Philippines from the 1980s to the mid-2000s. Philippine Airlines operated the 747-400, 747-200, 737-400, and 737-300. You also had other airlines operating Boeing planes such as Cebu Pacific, Air Philippines, and Grand Air. However, the tides slowly began to turn in the mid-2000s when Airbus was slowly becoming the dominant fleet. However, with all the present issues of Airbus and the A320neo family, will Boeing slowly establish a stronger presence in the Philippines once again?

Photo: Boeing

The Presence of Boeing in the Philippines

Currently, the only operator of Boeing planes is PAL, with ten (now nine) 777-300ER in the fleet. South East Asian Airlines still operates a Boeing 737-200C, or a pure cargo aircraft. However, in the past, the majority of airlines operated Boeing planes.

There were also other airlines operating 737s such as SEAir and other air services companies. Indeed, Boeing was enjoying a strong presence in the Philippines until Airbus slowly took over. In 1996, PAL embarked on a refleeting program involving a massive order of Airbus planes from the A320-200, A330-300, and A340-300. Basically, they ordered every Airbus plane available on the catalog at that time. However, PAL still continued to operate the 747 and 737 in the fleet.

In 2005 onwards, Cebu Pacific slowly took delivery of brand-new Airbus jets, replacing their 757-200s and DC-9s in the fleet. The initial order called for 10 A319s and 2 A320s. In 2010, Air Philippines rebranded from PAL Express to AirPhil Express. They then began utilizing two ex-PAL A320s to replace their old 737 fleet. After which, AirPhil Express ordered 20 brand-new A320s. Cebu Pacific then began increasing its A320 fleet. Asian Spirit, which operates a mixed turboprop fleet, rebranded as Zest Air and began operating A320s too.

Boeing’s presence was slowly dwindling as airlines began replacing their Boeing planes with Airbus. Eventually, PAL would end up being the lone operator of Boeing jets to this day, but only limited to widebody jets, the Boeing 777-300ER which eventually replaced their 747-400 fleet.

Boeing Philippines
Photo: Boeing
AirlineAircraftYears of Service
Philippine Airlines777-300ER2009 – present
747-4001996 – 2014
747-2001979 – 2000
737-4002000 – 2007
737-3001989 – 2008
Cebu Pacific757-2002000 – 2006
Air Philippines737-2001996 – 2009
737-3002001 – 2009
Grand Air737-2001996 – 1999

Boeing May Make a Comeback

I doubt, on the other hand, that PAL will let go of Boeing. I will put a buck on the idea that no matter what, they will always have a Boeing in the fleet. Recently, PAL placed an order for 9 Airbus A350-1000s which will eventually replace their current Boeing 777-300ERs. I personally also doubt that PAL will get a plane bigger than the A350-1000 like the Boeing 777-9X. However, PAL President and COO Capt. Stanley Ng did mention that there will be another round of widebody orders to replace their aging A330-300s. While the most ideal replacement is the A330-900neo, there is one Boeing plane that can provide better versatility than the A330neo; this is none other than the Boeing 787.

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While things are still under study before PAL makes a final fleet order announcement, it seems close to impossible that PAL will drop Boeing like a hot potato. Besides, pilots transitioning from the Boeing 777 to the 787 may not be as complicated and expensive as moving from the 777 to an A350 or A330-900. I do personally see a chance that PAL may take the 787-9 and/or 787-10 as A330 replacements. This plane also has better payload and range than the A330.

Boeing
Photo: Boeing

Possible Boeing Order from Cebu Pacific

Another airline to watch out for is Cebu Pacific. Just recently, Cebu Pacific and Airbus’s relationship is quite in hot water due to the Pratt & Whitney issues and delivery issues of the planes. While it may seem that having a single-manufacturer proved to be a more efficient way back, all the brouhaha happening is proving otherwise. Cebu Pacific continues to face capacity reductions, canceled flights, and delayed flights brought by technical issues involving their A321neos and A320neos utilizing the Pratt & Whitney geared turbofan engine.

Add also the PW1100G engine recall due to contaminated metal found in some of the engines, Cebu Pacific expects more of their NEO jets to be affected, and they are not about to take things sitting down.

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At the recent Aviation Summit, Cebu Pacific announced that they will put in a huge aircraft order within six months, and it can be the largest aircraft order in the Philippines. However, they will only order from Airbus or Boeing, not Airbus and Boeing. Meaning the huge order may be an Airbus reorder, or a totally new Boeing order.

Photo: Airbus

Cebu Pacific CEO Mike Szucs, however, mentioned that they do not want to put all their eggs in one basket, especially with this ongoing Airbus issue that is really hurting Cebu Pacific’s plans. Just lately too, Cebu Pacific and Boeing officials met up in Everett to check out the 737 MAX.

What are the chances that PAL and Cebu Pacific will get Boeings?

As of the moment, it is hard to tell, but if I am to analyze all the events happening, yes, there is a possibility that Boeing will reestablish its presence in the Philippines. Again, this is just my personal analysis. We might see 787s in the PAL fleet and 737 MAXs in the Cebu Pacific fleet. The final decision still lies with the airlines themselves. There is still no formal announcement from any of them if it will be a Boeing or Airbus for future orders, and I am holding on in anticipation.

My personal analysis of the situation tells me that yes, there is a possibility that Boeing may strengthen its presence again in the Philippines. However, it is unlikely that they will become the dominant force once again, unlike before. Perhaps Philippine aviation may end up being a 50-50 mix of Boeing and Airbus jets 5 years down the road and so on.

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