Philippine Airlines Bolsters Airbus Partnership to Support Global Expansion
By Alex Moreno
SINGAPORE—Philippine Airlines on Wednesday deepened its long-standing technical partnership with Airbus SE, signing a comprehensive maintenance agreement covering its entire fleet of European-manufactured aircraft as the carrier accelerates plans to expand its long-haul international network.
The agreement, finalized on the sidelines of the Singapore Airshow, extends the airline’s existing Flight Hour Services (FHS) contract to 63 aircraft. These include 43 A320-family narrowbody jets, 11 A330-family widebodies, and nine A350-1000 aircraft designed for ultra-long-haul operations. Philippine Airlines began operating its first A350-1000 in early 2025, with five additional aircraft scheduled for delivery through 2026 to support nonstop services to North America and other long-distance markets.
The expanded deal underscores the airline’s effort to align its technical infrastructure with an increasingly global route strategy. As Philippine Airlines adds longer and more complex sectors to its network, operational reliability and predictable maintenance costs have become central to sustaining profitability and on-time performance.
Under the so-called “Power-by-the-Hour” model, Airbus will assume responsibility for a broad range of component support activities, including repairs, standard exchanges, and engineering services. A key feature of the agreement is the establishment of a permanent on-site inventory of spare parts at the airline’s main hub at Ninoy Aquino International Airport in Manila. By positioning critical components closer to the point of use, the airline aims to reduce aircraft-on-ground time and improve schedule resilience, particularly during peak travel periods.
The move reflects a broader trend among airlines worldwide to transfer maintenance risk to original equipment manufacturers. In an operating environment characterized by supply-chain constraints, rising labor costs, and fluctuating demand, outsourcing component management allows carriers to stabilize expenses and preserve capital. For Philippine Airlines, consolidating maintenance support under a single provider also simplifies fleet management as it continues a multiyear modernization effort.
The partnership builds on a relationship that began in 2018, when the flag carrier first enrolled its A350-900 fleet in Airbus’ Flight Hour Services program. The scope of the agreement was expanded in 2022 to include A320 and A330 aircraft. With the latest extension, Philippine Airlines has now placed its entire Airbus fleet under one integrated technical framework, a move executives say will improve cost predictability and operational planning over the long term.
Airbus Asia-Pacific President Anand Stanley said the expanded agreement is intended to help the airline optimize fleet performance through access to Airbus’ global logistics network and data-driven reliability insights. He added that the collaboration allows Philippine Airlines to concentrate on flight operations and customer service, while Airbus manages the technical and supply-chain complexities associated with a diverse and growing fleet.
The maintenance agreement comes as Philippine Airlines continues to rebuild and reposition itself following the aviation industry’s post-pandemic recovery. The carrier reported maintenance expenses of approximately 17.48 billion pesos (about $310 million) during the first three quarters of 2025, highlighting the scale of cost pressures facing airlines as fleets age and flight activity increases.
Beyond widebody expansion, the airline is pursuing a broader fleet modernization strategy. This includes the planned delivery of several A321neo aircraft, which are expected to offer improved fuel efficiency and range for regional routes, as well as an extensive refurbishment program for existing narrowbody aircraft scheduled to run through 2027. Together, these initiatives are aimed at improving passenger experience while lowering unit costs.
By outsourcing component management directly to Airbus, Philippine Airlines can significantly reduce the capital typically tied up in spare-parts inventories. The resulting operational efficiencies are expected to support the airline’s ambition to maintain consistent service standards as it expands its presence across the Asia-Pacific region and deepens its reach into long-haul international markets.
As competition intensifies among Asian carriers for premium and long-distance traffic, the airline’s ability to pair network growth with reliable, cost-effective operations may prove decisive in reclaiming market share and strengthening its global position.©kuryentenews