2-7-2024 (MANILA) In a landmark move that is poised to reshape the Philippine aviation landscape, Cebu Pacific, the country’s leading low-cost carrier, announced on Tuesday that it will purchase up to 152 Airbus planes in a deal valued at a staggering $24 billion (approximately P1.4 trillion). Hailed as the “largest aircraft order” in the nation’s aviation history, this massive acquisition underscores Cebu Pacific’s ambitious growth plans and unwavering commitment to providing its customers with an exceptional travel experience.
The announcement was made by Cebu Pacific’s Chief Executive Officer, Michael Szucs, who emphasized the strategic flexibility afforded by the deal. “The order is designed to provide Cebu Pacific with maximum flexibility to adapt fleet growth to market conditions, with the ability to switch between the A321neo and A320neo,” Szucs stated, highlighting the airline’s agility in responding to evolving market demands.
According to the statement, Cebu Pacific has signed a binding memorandum of understanding with Airbus, encompassing “firm orders” for up to 102 A321neo aircraft and purchase rights for an additional 50 A320neo planes. The combined order, based on list prices, amounts to an impressive $24 billion, underscoring the airline’s unwavering confidence in the future of the Philippine aviation industry and its commitment to providing exceptional service to its customers.
Notably, Cebu Pacific has opted to equip these new aircraft with engines from Pratt & Whitney, despite previously reporting issues with the firm’s engines that had necessitated the grounding of at least 10 planes. This decision reflects the airline’s trust in Pratt & Whitney’s ability to address the challenges and provide reliable and efficient propulsion systems for the new fleet.
“When finalized, the deal will be a significant milestone for the local airline industry,” Szucs affirmed, emphasizing the profound impact this record-breaking order will have on the Philippine aviation sector. The transaction is expected to be finalized in the third quarter of the year, setting the stage for Cebu Pacific’s ambitious expansion plans.
