by Christopher Freeburn | August 28, 2012 11:22 am
Philippine Airlines has tapped European airplane maker Airbus to supply it with up to 100 new planes over the next five to seven years in a deal worth about $7 billion.
Airbus beat out American rival Boeing (NYSE:BA) to snag the order.
Under the deal, Airbus will deliver ten A330 jets and forty-four A321 planes beginning in 2013. Philippine Airlines will finance the orders with bank loans and might also issue additional shares, Reuters noted.
Philippine Airlines officials said they were considering Boeing 777-300 ER and 777-X jets for additional purchases.
Analysts noted that the Airbus purchase came despite Washington’s support for the Philippines during its recent South China Sea territorial stand-off with China. Sources said that Philippine Airlines had been pressured to purchase jets from Boeing.
It marked the second bit of bad news for Boeing in as many weeks. Last week, Australian airline Qantas cancelled an $8.5 billion order with Boeing after posting an annual loss.
Shares of Boeing rose fractionally in Tuesday morning trading.
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