21-2-2024 (SINGAPORE) Cebu Pacific, the Philippine budget airline, will make a decision in May or June regarding the selection of either Airbus or Boeing for an order of over 100 narrowbody aircraft that was announced last year, according to CEO Michael Szucs.
During an interview at the Singapore Airshow, Szucs stated that Cebu Pacific is considering a combination of Airbus’ A320neo and A321neo models or Boeing’s high-capacity 737 MAX 8-200 and 737 MAX 10 for delivery starting in 2027.
This decision will serve as a significant market test for Boeing, which has faced a series of crises, including the mid-air cabin panel incident on a MAX 9 jet in January.
Cebu Pacific requires a mix of aircraft models to accommodate the diverse runway types in the Philippines. Currently, the airline operates an all-Airbus narrowbody fleet consisting of A320neos and A321neos. A switch to Boeing would represent a major victory for the American planemaker.
Szucs expressed confidence in Boeing’s ability to address the problem that caused the panel blowout and emphasized that the company is in constant communication with Cebu Pacific.
In October, Cebu Pacific announced its intention to order 100 to 150 narrowbody aircraft, with a total value of up to $12 billion at list prices, marking potentially the largest-ever jet purchase in the Philippines.
The airline aims to more than double its fleet by 2035 to capitalize on the expected long-term travel growth in Southeast Asia following the pandemic.
Szucs mentioned that the deal is likely to consist of 100 firm orders with additional options for future purchases. The decision will also consider the airline’s engine preferences.
Pratt & Whitney’s GTF engines, used on some A320neo jets, are currently undergoing inspections due to potentially flawed components, resulting in the temporary grounding of planes and flight cancellations for various airlines. Ten of Cebu Pacific’s A320neo family aircraft are currently grounded awaiting these inspections. Szucs acknowledged that the engine issue will pose challenges for the carrier in the coming years.
However, he expressed confidence that Pratt & Whitney would resolve the problem by 2027, when Cebu Pacific expects to receive its new aircraft.
On Tuesday, the airline announced its selection of Pratt & Whitney engines to power the 15 A320neo family aircraft that are currently on order.
CFM International, a joint venture between GE and Safran, offers an alternative engine option for the A320neo family and is the sole engine provider for the 737 MAX.
