Airbus clinches $7 bln Philippine Air mega-deal

Airbus won a $7 billion order on Tuesday from Philippine Airlines, beating Boeing to a deal marked by diplomatic lobbying as the European planemaker appeared close to another major Asian deal in China.
The flag carrier plans to buy up to 100 new jets in total within the next five to seven years as it restructures operations to become a low-cost carrier and regain dominance of the local market from arch-rival Cebu Air Inc.
Those purchases would take its fleet to around 140 planes, far ahead of Cebu's 38-strong fleet, which it plans to double. Philippine Airlines (PAL) said it was still in talks with both Airbus and Boeing for its next tranche of planes.
For this stage of its fleet expansion, the airline has ordered 10 long-haul A330-300s and 44 jets from the A321 family, with delivery starting in 2013. The order includes 34 of a fuel-saving version available from mid-decade, the A321neo.
Industry sources said they expected some of these aircraft to replace older, less-efficient models, but most of the newly ordered aircraft would fuel expansion to counter Cebu Air, the country's largest budget carrier.
In Paris, shares in Airbus parent EADS bucked a weaker market to rise 0.5% to just under 30 euros.
"The good Boeing planes we are looking at are the 777-300ER and the upcoming 777-X. We're also interested in the Boeing 787-9 Dreamliner," President Ramon Ang told reporters on the sidelines of the deal-signing event in Manila on Tuesday.
San Miguel, which bought a 49% stake in PAL and a sister airline in April from Filipino billionaire and brewing rival Lucio Tan in a deal worth about $500 mln, controls the management of the airline.
A German government official meanwhile confirmed that Airbus expected to win more business from China, despite a recent row over airline emissions that obstructs a number of existing Chinese orders.
The EADS subsidiary is "optimistic" about securing deals during a state visit to Beijing this week by Chancellor Angela Merkel, the official said.
EADS Chief Executive Tom Enders is due to join a large business delegation accompanying Merkel to China.
On Monday, industry sources said Airbus hoped to sell up to 100 A320-family planes to China during the trip.
Such short-range aircraft, some of which are assembled on Chinese soil, have been spared any fallout from the row between China and EU as domestic travel expands.
China continues however to block the purchase of some 35 larger Airbus aircraft to protest against EU plans to enforce a carbon reduction scheme that opposing nations deem unfair.
Despite the new deals, Airbus is widely expected to lose its position as top-selling plane manufacturer this year to Chicago-based Boeing, which is enjoying a resurgence after falling behind its European rival for five straight years.