Philippine Airlines firms order for five Q400s

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Philippine Airlines has firmed an order for five Bombardier Q400 turboprops, with purchase rights for an additional seven aircraft.
The five Q400s, which will be configured with 86 seats in two classes, will be delivered throughout 2017, says Bombardier in a statement. The deal is worth $165 million at list price.
“The Q400 aircraft is the ideal solution for the airline as it develops its domestic operations network from secondary hubs and increases intra-island connectivity,” says Bombardier Commercial Aircraft president Fred Cromer.
The Q400s will be operated by the Philippine flag carrier’s PAL Express unit, which currently operates four Q300s and four Q400s, largely on services to island destinations. It also has nine Airbus A320s and two A321s in its fleet.
Its current Q400 fleet has an average age of 14 years, while its Q300s are 10 years old on average.
Questions & Answers
Q.What is the total potential value of this deal to Bombardier?
What is the total potential value of this deal to Bombardier?
The initial order for five Q400 turboprops is valued at $165 million at list price. The article does not specify the value of the purchase rights for the additional seven aircraft.
Q.Which specific unit of Philippine Airlines will operate these new aircraft?
Which specific unit of Philippine Airlines will operate these new aircraft?
The new Q400s will be operated by PAL Express, which is the Philippine flag carrier's unit. This unit already operates a mix of turboprops and Airbus jets.
Q.How do these new aircraft compare to the current Q400s in the PAL Express fleet?
How do these new aircraft compare to the current Q400s in the PAL Express fleet?
The new Q400s will be configured with 86 seats in two classes. The article states the current Q400 fleet operated by PAL Express has an average age of 14 years, but does not detail their configuration.
Q.What is the primary strategic purpose for Philippine Airlines acquiring these Q400s?
What is the primary strategic purpose for Philippine Airlines acquiring these Q400s?
The airline intends to use the Q400s to develop its domestic operations network from secondary hubs. They will also be used to increase intra-island connectivity within the Philippines.
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