Boeing, Airbus Win Philippine Air Orders : Aerospace: The airline says it will spend $2.7 billion to buy 32 new jetliners from the rival manufacturers.

Philippine Airlines Inc. said it plans to spend $2.7 billion to buy 32 new aircraft from Boeing Co. and Airbus Industrie in the next three years.

With an ownership dispute nearly settled, the national flag carrier plans to buy eight 747-400s, Boeing’s biggest long-distance jet, said Jaime Bautista, chief financial officer of Philippine Airlines.

The airline has also agreed to purchase four A340-300s, eight A330-300s and 12 A320s from Airbus Industrie of France under a refleeting program aimed at returning the airline to profitability, Bautista said.

Bautista declined to say how much Boeing and Airbus each would receive from the orders, which will rise to $3 billion when repairs and service are included. The 747-400, which can carry about 400 passengers, generally costs about $150 million.

Seattle-based Boeing, the world’s largest maker of commercial aircraft, has been competing with European rival Airbus and U.S.-based McDonnell Douglas Corp. to supply airlines in Asia, where rapid economic growth has led to more travel.

Airbus is owned by a European consortium made up of Deutsche Airbus, Aerospatiale, British Aerospace and Construcciones Aeronauticas.

Boeing is likely to capture up to 80% of the high-growth Asian aircraft market, said Paul Nisbet, an analyst at JSA Research. Asia will experience double-digit growth in airline traffic in the next few years as economic gains in the region spur more travel, he said.

Boeing is also expected to win the bulk of a $4-billion order for 25 new aircraft from Malaysian Airline System. An airline spokeswoman said Wednesday that it would announce after the new year the winner of the bid.

New Straits Times, quoting aviation sources, reported that Boeing would win more than $2 billion of the orders, mostly for the 747-400s.

Boeing has about 60% of the world jetliner market, Airbus has about 30% and McDonnell Douglas 10%--a share that has been falling.

Mark Simpson, head of research at ING Barings in Hong Kong, said air traffic in the region has been growing faster than capacity, which has fueled a turnaround in profits and expansion programs for many Asian carriers. He forecast 10% annual growth in passenger traffic in the next three years.

Singapore Airlines Ltd. said last month that it would buy as many as 77 Boeing jets for as much as $12.7 billion. That was followed by China Airlines’ order last week to purchase up to 15 Boeing 737-800 jets for $750 million.

On Wednesday, Boeing shares added 12.5 cents to 77.875 on the New York Stock Exchange.

Philippine Airlines’ agreement to expand and update its fleet had been under discussion for some time. The sudden breakthrough in the airlines’ boardroom battle last week cleared the way for the purchases, Bautista said.

Government financial institutions agreed last Friday to let airline Chairman Lucio Tan, a beer and tobacco magnate, obtain a majority stake in the company.

Tan has feuded with minority stockholders over plans to update and expand the fleet since 1991, when one of his companies won the bidding for 67% of the formerly state-owned airline.