28-6-2024 (MANILA) Airbus is closing in on a preliminary agreement with Philippine budget airline Cebu Air, operating as Cebu Pacific, for the purchase of dozens of narrow-body jets, according to three sources familiar with the matter. The deal, expected to be announced in the coming days, marks a significant milestone for the European aircraft manufacturer in the rapidly growing Southeast Asian aviation market.
While both Airbus and Cebu Air declined to comment on the ongoing commercial discussions, the sources revealed that the deal involves approximately 70 jets, including a number of A321neo models, the larger variant of Airbus’ best-selling single-aisle aircraft family.
Cebu Pacific, known for its aggressive expansion plans, has been actively seeking to order 100-150 narrow-body jets from either Boeing or Airbus, in what was anticipated to be the Philippines’ largest jet purchase to date, potentially worth up to $12 billion at list prices.
The airline’s ambitious fleet expansion strategy aims to capitalize on the long-term travel boom across Southeast Asia following the COVID-19 pandemic. By 2035, Cebu Pacific plans to more than double its current fleet size to meet the increasing demand for air travel in the region.
Currently, the airline operates a fleet of 64 Airbus and 14 ATR aircraft, which is set to increase to 92 by the end of 2024. The addition of the new Airbus jets will further bolster its growth plans and solidify its position as a leading low-cost carrier in the region.
Earlier this month, Bloomberg reported that Cebu Pacific was leaning towards favoring Airbus for a potential order of up to 150 aircraft, further fueling speculation about the impending deal.
The anticipated agreement with Cebu Pacific underscores Airbus’ strong presence in the Asia-Pacific region and its commitment to meeting the growing demand for efficient and modern aircraft. The narrow-body jets, renowned for their fuel efficiency and passenger comfort, are expected to play a crucial role in Cebu Pacific’s efforts to expand its route network and offer affordable air travel options to more destinations.
