Wednesday, February 17, 2016

The A350-900 Wins A PAL Order

A six order with six options is a win for Airbus in a hotly contested wide body market amounts to 1.8 billion dollar order amount using book prices. After much consideration and due diligence PAL agrees to an Airbus purchase commitment for the A350-900 based exclaiming the win based on passenger space, long distance reach with the Trent XWB 700 performance metrics. However an airline slices it, the findings for the A350 sets PAL as an Airbus run operation.

If PAL was hedging its Airbus bet with the 777 family, then a comparison will be forthcoming in the futures years of head to head operations. An important note for any model to model battle is PAL runs a heavy ended single aisle Airbus fleet. Not mentioned in reports is the Airbus Single aisle fleet influence for the wide body purchase since Airbus has a preponderance in its overall fleet. It would have been a greater surprise if PAL had ordered the 787's over the A350's since it had already uses a significant majority of its fleet as a Airbus fleet operation.

Boeing had wanted a greater representation in PAL's fleet with the wide-body suite of 787's and 777's. Further purchase analysis concludes the Airbus additional five inches over a 787's dimensional width and having an operations already based on Airbus tipped the balance, since the A350 range was not really the winning factor for the Airbus offering, even though it mentions range as having an influence in the decision. 

When all things are considered: flying the distance attribute, is close enough between the two competitors for making a decision based on its own current single aisle status; and then it went with the same manufacturer on its wide body choice became the more practical decision for PAL within its corporate vision.

Boeing didn't have a chance concerning PAL's order environment. The argument for Airbus was already made before this competition began.