Philippines carrier orders more Boeing 777-300

May. 28, 2007

MANILA – Philippine Airlines has increased its planned Boeing 777-300
Extended Range fleet to a total of six aircraft – four on firm order and
two on lease – by exercising its purchase rights on two option airplanes
that were part of the original order last year.

Last October 2006, the flag carrier came to terms with the Boeing Company
on the firm order of two B777-300ER jets and purchase rights on two
additional units.

Separately, PAL also signed a letter of intent with GE Commercial Aviation
Services for the lease of two B777-300ERs.

Deliveries will commence in the third quarter of 2009 and until 2011.

“Our future fleet of B777-300ERs will allow PAL to enhance its passenger
service to the United States, while providing superior efficiency in our
operations,” said PAL president Jaime J. Bautista. “Our passengers will
appreciate the world-class interior comfort and amenities of this
high-technology aircraft.”

“PAL is a very forward-looking carrier and their fleet of six B777-300ERs
is a great fit to provide their customers the best in service while
achieving increased efficiency in these times of high fuel prices,” said
Rob Laird, vice president for sales at Boeing Commercial Airplanes. “These
aircraft symbolize our two companies working together for the benefit of
the passenger.”

The decision to acquire the B777-300ERs, PAL’s first new widebody aircraft
model in 12 years, signals the long-anticipated modernization of the
airline’s long-range fleet.

It follows on the heels of a similar upgrading of PAL’s single-aisle
fleet, which started last September 2006 with the arrival of the first of
20 brand-new Airbus A320-family jets. Six of those aircraft are already in
service and four more are arriving this year.

The fuel-efficient B777-300ER is the world’s largest long-range
twin-engine jetliner and is capable of carrying up to 365 passengers in
PAL’s two-class configuration, at a range of up to 7,880 nautical miles
(14,594 kilometers).

It will complement the Boeing 747-400, PAL’s venerable flagship, on the
trans-Pacific routes. PAL’s widebody fleet currently comprises 17
aircraft: five B747-400s, four Airbus A340-300s and eight Airbus A330-300s.

PAL has specified a bi-class configuration for its B777-300ERs, with
state-of-the-art seats and in-flight entertainment system capable of
providing audio/video on-demand in both Mabuhay (business) and Fiesta
(economy) classes.

The flag carrier flies to 24 destinations in 13 countries and territories,
including three points on the U.S. mainland – Los Angeles, San Francisco
and Las Vegas – plus Honolulu and Guam in the Pacific.

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