PAL Signs Engine Maintenance Contract with AFI KLM E&M

Manila, Paris, Amstelveen, 1 March 2011 – Philippine Airlines (PAL) today entered into a long term contract with AFI KLM E&M for maintenance and engineering support of its GE90 engines, the primary workhorses of PAL’s fleet of Boeing 777-300Ers.

PAL president and COO Jaime J. Bautista and AFI KLM E&M executives led by Fabrice Defrance AFI KLM E&M SVP Industrial & Business Development, signed the agreement which covers on-site and on-wing maintenance, shop visits, component support, spare engines and engineering support for PAL’s extended range Boeing 777s.

During the past years, PAL has tapped the services of AFI KLM E&M not only for CF6-80E engine maintenance but also for airframe and FTR support services. Satisfied with AFI KLM E&M’s high quality services and attractive pricing, PAL decided to take the partnership further. “AFI KLM E&M has amply demonstrated its flexibility and understanding of our needs in all the work done for us. We are therefore happy to extend our cooperation to a new area – GE90 engine support – where AFI KLM E&M has also demonstrated its know-how,” Bautista said.

Apart from competitive rates, PAL was also won over by the dual MRO-Airline profile of AFI KLM E&M, which has unrivalled experience in the GE90 maintenance product, both for the AIR FRANCE KLM fleets and for its customers worldwide. AFI KLM E&M has expanded its engineering capabilities, enabling it to offer a comprehensive range of solutions for handling GE90 engines – currently the only comprehensive, reliable alternative to the manufacturer’s service offer. Franck Terner, Executive Vice President of AFI KLM E&M, said: “We are delighted to continue working with Philippine Airlines, with which we have developed a relationship based on respect and mutual trust over the years.”

About Philippine Airlines. Now celebrating its 70th anniversary, PAL is the flag carrier and national airline of the Philippines. Founded in 1941, it is the oldest commercial airline in Asia operating under its original name. From its hubs at the Ninoy Aquino International Airport – Manila’s main gateway -- and Mactan Island, Cebu, PAL serves a network of 20 domestic points and 25 international destinations spanning Asia, Oceania and North America.

About AFI KLM E&M. Air France Industries and KLM engineering & Maintenance, which joined forces following the Air France KLM merger, are world-leading multi-product MRO (Maintenance, Repair, Overhaul) providers with a joint workforce of 14,000, offering comprehensive technical support for airlines ranging from engineering and line maintenance to engine overhaul as well as the management, repair and supply of aircraft components, structured around a powerful logistics network. AFI KLM E&M supports more than 1,230 aircraft operated by 150 major international airlines. www.afiklmem.com