Bombardier Commercial Aircraft and Philippine Airlines concluded a purchase agreement for five Q400 turboprop airliners, with purchase rights for an additional seven aircraft, Bombardier announced on December 8. The value of the transaction is $165 million based on the Q400 list price, increasing to $401 million if the airline exercises all of its purchase rights.

The Philippines Airlines Q400s will be configured for 86 seats in two classes. The five aircraft on firm order will be delivered to the airline, which is based in Pasay, Philippines, throughout 2017, Bombardier said. The parties announced a letter of intent for the sale in October.

“With the lowest seat-mile costs in the regional aircraft market, the extra-capacity, two-class Q400 aircraft will offer Philippine Airlines significant opportunities to differentiate itself competitively,” said Fred Cromer, Bombardier Commercial Aircraft president. “The Q400 aircraft is the ideal solution for the airline as it develops its domestic operations network from secondary hubs and increases intra-island connectivity.”