MIAMI — Bombardier and Philippine Airlines (PAL) have finalized a firm order for five Q400 turboprops, with purchasing  options for seven additional aircraft.

The firm order is the finalization of a prior Letter of Intent announced last October, and it is valued at approximately US $165 million at list prices, and it could increase to US $401 million if all options are exercised.

The flag carrier of the Philippines also becomes the launch customer of the 86-seat Q400 aircraft. The additional seating of this high-density variant removes the forward baggage cabin, converts the forward cargo door into a passenger door, and modifying the galley and wardrobe closet.

Currently, PAL operates five 76-seat Q400s under its regional division PAL Express. The regional carrier is Philippine Airline’s answer to Cebu Pacific’s domestic dominance, with a 60% share in the low-cost travel market in the Philippines.

“As we strive to become a top-rated airline, the Q Series family of aircraft has enabled us to develop our business model into one which efficiently meets our domestic route requirements while providing our passengers with a full service on board experience”, Jaime J Bautista, President and Chief Operating Officer, Philippine Airlines said in a statement.

Besides this Q400 firm order to be delivered throughout 2017, PAL has a backlog of orders for 30 Airbus A321neo and up to 12 Airbus A350-900s.