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Aircraft Orders & Deliveries

BOC Aviation and Philippine Airlines Finalize Airbus A350-1000 Deal

BOC Aviation and Philippine Airlines agree on leaseback deal for two Airbus A350-1000s to support PAL’s fleet modernization and long-haul routes.

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This article is based on an official press release from BOC Aviation.

BOC Aviation and Philippine Airlines Seal Landmark Deal for Two Airbus A350-1000s

BOC Aviation Limited has officially announced a significant purchase-and-leaseback agreement with Philippine Airlines (PAL) involving two Airbus A350-1000 Commercial-Aircraft. According to the company’s statement released on December 4, 2025, this Contracts marks a dual milestone, it welcomes PAL as a new customer to the lessor’s portfolio and represents the first-ever addition of the A350-1000 model to the BOC Aviation fleet.

The agreement secures the immediate future of PAL’s long-haul capabilities, with the first aircraft scheduled for Delivery in December 2025. As the aviation industry continues to navigate a competitive landscape for wide-body assets, this deal underscores the strategic reliance on lessors to facilitate fleet modernization and capacity expansion.

Transaction Details and Aircraft Specifications

The deal is structured as a purchase-and-leaseback transaction, a financial mechanism where BOC Aviation purchases the aircraft and immediately leases them back to the Airlines. This allows Philippine Airlines to maintain liquidity while securing essential assets for its premier routes.

According to details released regarding the agreement, the two Airbus A350-1000s will be powered by Rolls-Royce Trent XWB engines. The aircraft are expected to feature a high-density, premium tri-class configuration designed to accommodate 382 passengers. The layout includes:

  • Business Class: 42 seats
  • Premium Economy: 24 seats
  • Economy Class: 316 seats

Steven Townend, CEO and Managing Director of BOC Aviation, highlighted the significance of the transaction in the official release:

“We are delighted to welcome PAL as a new customer. This is our first A350-1000 delivery and underscores our commitment to supporting the industry’s development with latest-technology aircraft. As a global aircraft operating lessor… our financial strength and orderbook allow us to support the growth of our airline customers with both capital and capacity.”

Strategic Implications for Philippine Airlines

For Philippine Airlines, the acquisition of the A350-1000 is a critical component of its “Fleet Modernization” strategy. The airline aims to operate one of the youngest fleets in Asia, replacing older Boeing 777-300ERs with more fuel-efficient alternatives. The A350-1000 is currently the only aircraft in PAL’s inventory capable of operating non-stop on its longest transpacific routes, specifically Manila to New York (JFK) and Manila to Toronto, without payload restrictions.

Richard Nuttall, President and COO of Philippine Airlines, commented on the operational benefits of the new airframes:

“The addition of the Airbus A350-1000 to our fleet marks a pivotal step in Philippine Airlines’ ongoing fleet modernization program. This investment not only aligns with our commitment to operating one of the youngest and most fuel-efficient fleets in the region, but also ensures we can deliver world-class comfort, reliability, and efficiency to our passengers.”

AirPro News Analysis: The Wide-Body Market Context

This transaction occurs against the backdrop of a tightened wide-body market in late 2025. Industry data indicates a persistent shortage of twin-aisle aircraft driven by manufacturing delays and a robust resurgence in long-haul international travel. Consequently, lease rates have risen, and securing delivery slots has become increasingly competitive.

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By securing these assets through BOC Aviation, PAL bypasses potential delivery backlogs that might affect direct orders. Furthermore, the deal highlights BOC Aviation’s substantial market position. As of September 30, 2025, the lessor reported a total portfolio of 812 aircraft owned, managed, and on order, demonstrating the liquidity required to execute large-scale capital deployments during periods of high demand.

Frequently Asked Questions

When will Philippine Airlines receive the new aircraft?

According to the press release, the first Airbus A350-1000 is scheduled for delivery in December 2025.

What routes will these aircraft fly?

While specific scheduling is subject to change, the aircraft are intended for PAL’s premier long-haul routes to North America, including non-stop services from Manila to New York and Toronto.

How many passengers can the new A350-1000 carry?

The aircraft will be configured with a premium tri-class layout totaling 382 seats.

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Photo Credit: BOC Aviation

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Aircraft Orders & Deliveries

China Airlines Orders Five Additional Airbus A350-1000 Aircraft

China Airlines adds five Airbus A350-1000s to its fleet, enhancing capacity on transpacific and European routes with deliveries from 2026.

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This article is based on an official press release from Airbus and additional industry data regarding fleet modernization.

China Airlines Bolsters Long-Haul Capacity with Additional A350-1000 Order

China Airlines (CAL) has officially signed a firm orders for five additional Airbus A350-1000 aircraft, signaling a continued commitment to modernizing its long-haul operations. Announced on December 18, 2025, this agreement increases the Taiwan-based carrier’s total backlog for the A350-1000 variant to 15 aircraft. The move is part of a broader strategy to replace aging widebody jets and enhance capacity on high-density routes connecting Asia with North America and Europe.

According to the official statement released by Airbus, these new aircraft will join the airline’s existing fleet of 15 A350-900s. The decision to expand the A350-1000 order book underscores the operator’s reliance on the A350 family’s commonality, which allows for streamlined pilot training and maintenance procedures. Deliveries for the newly ordered jets are scheduled to commence in 2026 and continue through 2029.

The deal also highlights the competitive landscape of widebody aviation in the Asia-Pacific region. By securing these additional units, China Airlines aims to deploy its flagship product on slot-constrained routes where maximizing passenger count per movement is critical. The aircraft will be powered by Rolls-Royce Trent XWB-97 engines, known for their efficiency in long-range operations.

Strategic Deployment and Cabin Innovation

China Airlines plans to utilize the A350-1000 primarily for its most prestigious long-haul markets. Industry reports indicate that the aircraft will be deployed on key transpacific routes to New York (JFK), Los Angeles (LAX), Seattle (SEA), and Ontario, California (ONT), as well as European hubs like London Heathrow (LHR). The A350-1000 offers significantly higher capacity than the -900 variant, making it a strategic asset for airports with limited landing slots.

Next-Generation Passenger Experience

Coinciding with these deliveries, the airline is preparing to unveil a major upgrade to its onboard product. Sources familiar with the carrier’s fleet planning suggest a new cabin design will debut in 2027. This retrofit is expected to feature business class suites with closing doors, 4K entertainment screens, and wireless charging capabilities, aiming to rival premium competitors such as Singapore Airlines and Cathay Pacific.

The interior aesthetic will likely continue the carrier’s “Oriental aesthetics” theme, utilizing persimmon wood-grain finishes and mood lighting to evoke a boutique hotel atmosphere. While the current A350-900 seats 306 passengers, the larger -1000 variant is projected to accommodate between 350 and 400 passengers, providing a substantial boost in premium economy and economy seat inventory.

Executive Commentary

Both China Airlines and Airbus executives emphasized the efficiency and passenger comfort benefits of the A350-1000. In the official press release, Kao Shing-Hwang, Chairman of China Airlines, noted the alignment of this order with the carrier’s sustainability and service goals.

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“Expanding our A350-1000 fleet marks another important step in our long-term growth strategy. The A350’s exceptional efficiency and passenger comfort align with our goals to modernize our fleet, enhance long-haul competitiveness, and deliver an elevated travel experience to our customers.”

Kao Shing-Hwang, Chairman of China Airlines

Benoit de Saint-Exupéry, Airbus EVP Sales, added that the repeat order validates the aircraft’s performance in the heavy widebody segment.

“This follow-on order is a strong vote of confidence in the A350-1000 as the right aircraft for China Airlines’ future network ambitions. Its next-generation efficiency, range, and cabin comfort brings even greater value to the airline and its passengers.”

Benoit de Saint-Exupéry, Airbus Sales

AirPro News Analysis

This order reinforces a “split fleet” procurement strategy that has become increasingly common among major global carriers. While China Airlines has committed to the Boeing 777X for specific high-volume trunk routes and the 787 Dreamliner for regional replacement, the expansion of the A350-1000 fleet secures Airbus’s position as the backbone of the airline’s medium-to-large widebody operations.

From a financial perspective, based on 2025 list prices of approximately $366.5 million per unit, the deal holds a theoretical face value of roughly $1.83 billion, though actual acquisition costs are typically 40-50% lower after standard industry discounts. Environmentally, the shift is significant; the A350-1000 offers a 25% reduction in fuel burn compared to the previous generation aircraft it replaces, such as the Boeing 747-400 freighters and older passenger jets. This efficiency gain is a critical component of the airline’s roadmap to achieving Net Zero carbon emissions by 2050.

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Photo Credit: Airbus

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Aircraft Orders & Deliveries

Natilus Launches India Subsidiary and Secures SpiceJet Aircraft Order

Natilus expands into India with a Mumbai subsidiary and a 100-aircraft order from SpiceJet for its Horizon blended-wing body plane.

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This article is based on an official press release from Natilus.

Natilus Launches India Subsidiary; Secures Commitment for 100 Aircraft from SpiceJet

Natilus, a U.S.-based aerospace manufacturers specializing in Blended-Wing Body (BWB) Commercial-Aircraft, has officially announced its expansion into the Indian aviation market. According to the company’s press release, the move includes the debut of a new subsidiary, Natilus India, headquartered in Mumbai. This strategic expansion is designed to address the growing demand in one of the world’s fastest-developing aviation sectors.

Coinciding with the launch of the new subsidiary, Natilus announced a significant commercial agreement with Indian low-cost carrier SpiceJet. The Airlines has committed to purchasing 100 units of Natilus’s “Horizon” passenger aircraft. The company noted that this transaction is subject to the successful Certification of the aircraft, which is currently in the development phase.

Strategic Expansion and Leadership

The establishment of Natilus India represents a direct effort to localize operations within a key global market. In its announcement, Natilus confirmed the appointment of Ravi Bhatia as the Regional Director for the new subsidiary. Bhatia’s role will focus on overseeing in-country operations, managing regulatory engagement with Indian aviation authorities, and fostering industrial Partnerships.

The company stated that this move aligns with India’s “Make in India” initiative. By establishing a physical presence in Mumbai, Natilus aims to source components and engineering services locally, integrating Indian manufacturing capabilities into its global Supply-Chain.

The SpiceJet Commitment

The purchase order from SpiceJet marks a pivotal moment for the “Horizon” program. If completed, this deal would position SpiceJet as an early adopter of BWB technology in the region. The “Horizon” is Natilus’s flagship passenger model, designed to seat between 200 and 240 passengers.

According to performance data released by Natilus, the aircraft is engineered to replace traditional narrowbody fleets, such as the Boeing 737 and Airbus A320 families, with a range of approximately 3,500 nautical miles.

Technological Innovation: The Blended-Wing Body

Natilus is distinguishing itself from traditional aerospace manufacturers through its focus on the Blended-Wing Body design. Unlike the conventional “tube-and-wing” architecture, the BWB design integrates the fuselage and wings into a single lifting body.

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In its official communications, Natilus claims this aerodynamic shift offers significant efficiency gains:

  • Fuel Efficiency: The design reportedly consumes 30% less fuel than comparable traditional aircraft.
  • Operational Costs: The company projects a 50% reduction in overall operating costs.
  • Volume: The airframe offers 40% more interior volume, allowing for flexible passenger or cargo configurations without increasing the aircraft’s airport footprint.

AirPro News Analysis: Market Context and Risks

While the announcement signals strong momentum for Natilus, the timeline and regulatory hurdles remain significant factors. The “Horizon” aircraft is expected to enter service in the early 2030s, meaning the realization of the SpiceJet order is likely a decade away. Furthermore, the deal is explicitly “subject to certification.” Natilus is currently pursuing FAA Part 25 certification in the United States, which must be achieved before the Directorate General of Civil Aviation (DGCA) in India can validate the aircraft for local operations.

For SpiceJet, this commitment appears to be a long-term strategic bet on efficiency. The airline, which has faced recent financial volatility, is looking to future-proof its fleet against rising fuel costs. By locking in orders for an aircraft that promises 50% lower operating costs, the carrier is signaling a focus on long-term profitability despite current market challenges.

The move also places Natilus in direct competition with other BWB developers, such as JetZero, which has secured backing from major U.S. carriers. However, by establishing a dedicated subsidiary in India, Natilus is attempting to secure a “first-mover” advantage in the Asian market, which industry forecasts suggest will require over 2,200 new aircraft by 2040.

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Photo Credit: Natilus

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Aircraft Orders & Deliveries

Star Air in Talks for $1 Billion Embraer E2 Jet Fleet Expansion

Star Air is negotiating a $1 billion deal to acquire up to 20 Embraer E2 jets, marking Embraer’s first direct E2 commercial order in India with deliveries from 2028.

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This article summarizes reporting by Bloomberg and journalists Mihir Mishra and Siddharth Philip. And publicly available datas.

Star Air in Talks for $1 Billion Embraer Fleet Expansion

Star Air, recognized as India’s largest private regional carrier, is reportedly in advanced discussions to acquire up to 20 aircraft from Brazilian aerospace manufacturer Embraer SA. According to reporting by Bloomberg, the potential deal is valued at approximately $1 billion based on list prices, marking a significant potential breakthrough for Embraer in the competitive Indian aviation market.

If finalized, this acquisition would represent the first direct commercial order for Embraer’s new E2 generation jets by an Indian airline. The move signals a strategic shift for Star Air, which currently operates a fleet of leased Embraer aircraft, toward asset ownership and long-term capacity expansion.

Details of the Proposed Acquisition

According to sources familiar with the matter cited by Bloomberg, the negotiations center on the Embraer E-Jet E2 family, specifically the E195-E2 or E190-E2 models. These aircraft are designed to bridge the gap between smaller turboprops and larger narrowbody jets like the Airbus A320, offering capacity for up to 146 passengers.

Deal Structure and Timeline

Industry reports indicate the deal is likely structured to include:

  • Total Units: Up to 20 aircraft.
  • Order Split: A probable mix of 10 firm orders and 10 options to be exercised at a later date.
  • Valuation: Estimated at $1 billion at list prices, though airlines typically negotiate significant discounts for bulk orders.
  • Delivery: Deliveries are projected to commence in the fiscal year ending March 2028.

This potential order aligns with Star Air’s broader “Vision 2030” strategy. As reported by the Economic Times and other outlets in November 2025, the airline aims to expand its fleet to 50 aircraft by the end of the decade. Currently, the carrier operates an all-Embraer fleet consisting of 50-seater ERJ 145s and dual-class E175s.

Financial Backing and Strategic Context

The scale of this acquisition requires substantial capital, and Star Air has been actively strengthening its balance sheet to support such expansion. The airline is the aviation arm of the Sanjay Ghodawat Group (SGG), a diversified conglomerate with interests ranging from consumer products to energy.

In November 2025, Star Air successfully raised INR 150 crore (approximately $18 million) in a Series B funding round. This round attracted marquee investors, including Micro Labs Ltd and Deepak Agarwal. Furthermore, the airline has indicated plans to raise an additional INR 200 crore by the 2026-27 fiscal year to fund pre-delivery payments and operational scaling.

Embraer’s Push into India

For Embraer, securing a firm order from Star Air would be a critical validation of its “Profit Hunter” marketing campaign in South Asia. While the manufacturer supplies aircraft to the Indian Air Force and the Border Security Force, it has historically struggled to break the commercial duopoly held by Airbus and Boeing in the region.

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To address this, Embraer opened a new corporate office in New Delhi in October 2025. This localized presence appears to be yielding results, as the manufacturer positions the E2 jet as the ideal solution for India’s regional connectivity scheme, UDAN (Ude Desh ka Aam Nagarik).

AirPro News Analysis

The Case for “Right-Sizing” in Indian Aviation

At AirPro News, we view this potential transaction as a pivotal moment for the concept of “right-sizing” in the Indian market. For years, Indian carriers have relied heavily on 180-seat Airbus A320s or Boeing 737s. While efficient on trunk routes (e.g., Delhi to Mumbai), these aircraft are often too large to operate profitably on thinner regional routes connecting Tier-2 and Tier-3 cities.

Conversely, turboprops like the ATR-72 are efficient but slower and lack the range for longer regional sectors. The Embraer E2 family sits in the middle, offering jet speeds and ranges with a seat capacity (100–146) that lowers the financial risk per flight. If Star Air proceeds with this order, it validates the business case that profitability in India is not solely about filling the largest possible plane, but about matching capacity to demand.

Frequently Asked Questions

What is the value of the Star Air and Embraer deal?

The deal is estimated to be worth approximately $1 billion based on list prices, though final transaction prices are usually lower.

Which aircraft is Star Air buying?

The airline is considering the Embraer E-Jet E2 family, likely the E195-E2 or E190-E2 models.

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When will the new aircraft be delivered?

Deliveries are expected to begin in the fiscal year ending March 2028.

Is Star Air a public company?

No, Star Air is a private regional carrier and part of the Sanjay Ghodawat Group. However, it has raised external capital through Series B funding.

Sources

Photo Credit: Embraer E195-E2

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