PAL to borrow $38 M to buy new aircraft

MANILA, Philippines - Flag carrier Philippine Airlines (PAL) is borrowing $38 million from banks to finance the acquisition of an Airbus A321-200 aircraft.

Cathay United Bank Co. Ltd., the lead arranger and book runner of the syndicated term loan, said the loan signing ceremony with PAL is scheduled on Sept. 5.

The other banks who served as co-arrangers are Asia United Bank and Mega International Commercial Bank.

In July, PAL took delivery of a brand new Airbus A321 to be used for its domestic and international flights.

The arrival of the brand new Airbus A321 brought to 78 the total number of aircraft in PAL’s fleet.

The 199-seater A321 is configured to accommodate 12 on business class, 18 on premium economy and 169 on regular economy.

PAL is scheduled to take delivery of three more Airbus A321s before the end of the year.

Earlier this year, PAL also signed a purchase agreement with Airbus for six A350-900 aircraft to be used for long-haul routes.

The first A350 is scheduled for delivery in 2018.

PAL is acquiring new aircraft to support the plan to expand to more destinations.

At present, PAL has flights to over 40 international destinations and 30 domestic points.