According to aviation enthusiasts’ sources, with China’s help, Philippine Airlines is set to welcome its first A350-1000 aircraft. The registration number of this aircraft has been confirmed as RP-C3510, and it is expected to be delivered next week.
Philippine Airlines, the flag carrier of the Philippines, is the country’s leading airline. Founded in 1941, it has long been managed by the Chinese-Filipino Chen Yongcai family. In June 2023, Philippine Airlines placed an order for 9 A350-1000 aircraft, which are scheduled to be delivered between 2025 and 2028.
The A350-1000 belongs to the A350 series and is Airbus’ most technologically advanced large passenger aircraft. It can carry up to approximately 480 passengers and has a maximum range of around 16,000 kilometers. Following the discontinuation of the A380, it is now Airbus’ largest available aircraft model.
Philippine Airlines has a strong demand for wide-body large aircraft. Apart from business passenger flow, this is also driven by the “Filipino domestic workers”. Filipino domestic workers are popular in Western countries for their hardworking nature, gentle temperament, good English proficiency, and professional training in childcare and cooking. They are highly competent at both taking care of children and managing household affairs.
The return trips of Filipino domestic workers to their hometowns for family visits are a key part of the Philippines’ civil aviation business. Most children are reluctant to part with their nannies for long, and employers often book direct flight tickets for them—senior Filipino domestic workers even get to travel in first class for both outbound and return trips. Surveys show that first-class seats on all airlines flying to and from Manila are almost always fully occupied, thanks to this unique passenger flow of Filipino domestic workers.
Philippine Airlines’ intercontinental routes were originally mainly operated by Boeing 777-300ER aircraft. It trialed the A350-900 before the COVID-19 pandemic, and there were rumors during the pandemic that it would abandon the model entirely. However, possibly due to higher-than-expected passenger traffic, it retained 2 of these aircraft. These two A350-900s feature a relatively spacious cabin layout and are now primarily used for flights to New York.
Most analysts believe that Philippine Airlines’ order for the A350-1000 is to replace its 777-300ER fleet, while others suggest that the airline has found a “profitable formula” with the A350. Although the A350-900 has higher operating costs, as a new-generation aircraft, it is highly fuel-efficient, making it competitive on routes to North America and Europe.
Philippine Airlines is regarded as having a high level of operational expertise, largely because it has to compete with Cebu Pacific, known as the “price butcher”. The Philippines has one of the lowest airfare levels in the world, even lower than South Korea. Cebu Pacific often slashes domestic airfares to around 100 Chinese yuan, leaving almost no profit margin.
Despite facing intense competition from Cebu Pacific, Philippine Airlines has managed to keep up so far. It actively leverages its advantages in long-haul routes and business services to carve out its own market space. With low fares and decent services, many Chinese passengers choose to take Philippine Airlines and transfer in Manila when traveling to North America.
China has long provided financial support to the Philippines’ civil aviation sector, and some Chinese investors have even established airlines in the Philippines. It is reported that Philippine Airlines has sold its first A350-1000 to China’s “BOC Aviation” and will use the aircraft through a “sale-and-leaseback” arrangement. This not only brings business opportunities to China but can also be seen as the Philippines “bringing China on board” for cooperation.
Given Philippine Airlines’ strong operational capabilities and the A350-1000’s excellent long-haul performance, Analyst La considers this to be an excellent cooperation!
