Philippine Airlines Signs Letter of Intent to Acquire up to 12 Bombardier Q400 Aircraft

TORONTO, ONTARIO--(Marketwired - Oct. 14, 2016) - Bombardier Commercial Aircraft announced today that Philippine Airlines, Inc., flag carrier of the Philippines, has signed a Letter of Intent (LOI) to acquire up to 12 Q400 aircraft.

"For close to a decade, the Bombardier Q Series family of aircraft has been instrumental in evolving our domestic network operations," said Jaime J Bautista, President and Chief Operating Officer, Philippine Airlines. "We are proud that our continued fleet growth now makes us the first airline to launch service with the two-class, 86-seat Q400 aircraft. As we strive to become a 5-star-rated airline, the Q400 aircraft, featuring a modern and innovative configuration, will be instrumental in providing our travellers with a world-class, in-flight passenger experience."

"Integrating the extra-capacity, two-class Q400 aircraft into its operations is the ideal solution for Philippine Airlines as it reshapes its domestic air travel strategy," said Fred Cromer, President, Bombardier Commercial Aircraft. "With its perfect balance of passenger amenities and operational flexibility, the 86-seat Q400 aircraft will offer Philippine Airlines significant opportunities to differentiate itself in the region's fiercely competitive environment.

"We look forward to working with Philippine Airlines to reach a firm purchase agreement for Q400 aircraft," added Mr. Cromer.

"As Philippine Airlines looks to develop its domestic operations from secondary hubs and increase intra-island connectivity, the 86-seat Q400 aircraft -- the largest two-class turboprop aircraft available on the market -- will increase the carrier's competitiveness by offering the lowest seat-mile and operating costs in the regional aircraft market," said François Cognard, Vice President, Sales, South-East Asia and Australasia. "Our continued collaboration will undoubtedly set the stage for another decade of profitable and efficient operations for Philippine Airlines."

Bombardier's Dash 8/Q Series turboprops and CRJ Series regional jets have made significant advances in the Asia-Pacific region where approximately 190 aircraft - including more than 165 Dash8/Q Series turboprops -- are in service with, or ordered by, over 25 customers and operators.

Bombardier's customer support network for commercial aircraft in the Asia-Pacific region includes Regional Support Offices in Narita (Tokyo), Sydney, Beijing, Shanghai and Mumbai, as well as Parts Depots in Sydney, Beijing and Singapore. Operating from the company's regional office located in Singapore, Bombardier Commercial Aircraft's sales and marketing team is well positioned to provide industry-leading solutions to its current and prospective customers.

About Philippine Airlines

Philippine Airlines (PAL) is the flag carrier of the Philippines. Headquartered in Manila, PAL celebrates its 75^th anniversary this year as the first commercial airline in Asia still in operation today. Operating out of its hubs at Ninoy Aquino International Airport of Manila and Mactan-Cebu International Airport of Cebu, Philippine Airlines serves 31 destinations in the Philippines and over 40 destinations in Southeast Asia, East Asia, Middle East, Oceania, North America and Europe.

About the Q400 Aircraft

Designed as a modern, 21st-century turboprop, the Q400 aircraft is the most recent development in the Q Series family of aircraft. It provides unmatched performance, operational flexibility and passenger comfort. In addition to the standard single-class configuration, Q400 aircraft are available with an optional dual-class interior for enhanced passenger comfort; in an optional extra-capacity configuration offering up to 90 seats for higher-density markets; and in a cargo-passenger combi configuration.

Thanks to its combination of turboprop attributes, jet-like features, industry-leading passenger experience and environmental footprint, the Q400 aircraft is exceptionally versatile and can be adapted to a variety of business models. By offering a 30 per cent reduction in fuel burn over the jets it often replaces, the Q400 aircraft radically reduces carbon emissions and increases cost efficiency. Its high-speed cruise -- 160 km/h faster than conventional turboprops -- places the aircraft's flight time within minutes of jet schedules, at the same seat cost as larger single-aisle jets. Its large propellers operate at a lower RPM, generating more power with less noise and making it a friendly option for city centres.

The Q400 aircraft family includes over 60 owners and operators in almost 40 countries. The worldwide fleet has logged more than 6.9 million flight hours and has transported more than 429 million passengers. Long recognized as a high-value asset by operators, the Q400 aircraft is now also attracting growing interest from the leasing community.

Bombardier has recorded firm orders for a total of 565 Q400 aircraft.

About Bombardier

Bombardier is the world's leading manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.

Bombardier is headquartered in Montréal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability North America Index. In the fiscal year ended December 31, 2015, we posted revenues of $18.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier

Notes to Editors

Images of Q400 aircraft in Philippine Airlines' livery are posted with this press release at www.bombardier.com.

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