Cebu Air Inc., the listed airline unit of the Gokongwei Group that runs budget carrier Cebu Pacific, said Tuesday it expects to finalize within the third quarter the agreement to purchase from Airbus a total 152 aircraft, a deal valued at approximately USD24 billion based on list price.
Earlier this month, the Gokongwei Group presented the deal to President Ferdinand Marcos Jr. as the largest deal in Philippine aviation history and a vote of confidence on the prospects of the tourism and travel industry.
Cebu Air said the deal with Airbus ncludes firm orders for 102 A321neo aircraft and purchase rights for an additional 50 A320neo Family aircraft. The budget carrier has chosen Pratt & Whitney’s GTF™ engines to power these new additions to its fleet.
“This order underscores Cebu Pacific’s commitment to enhancing its fleet with the latest generation aircraft,” said Michael Szucs, chief executive officer of the budget carrier. “It provides us with the flexibility to meet market demands effectively, supporting our mission to make air travel more accessible and affordable while contributing to the growth of the Philippines.”
Airbus expressed confidence their aircraft will contribute significantly to Cebu Pacific’s operational efficiency and cost-effectiveness in a competitive market environment.
“These state-of-the-art A321neo aircraft will enable CEB to further reduce operating costs and offer low fares, reinforcing its position as a leading low-cost carrier in the Asia-Pacific region,” said Benoît de Saint-Exupéry, executive vice president of sales for commercial aircraft at Airbus.
Pratt & Whitney highlighted the significance of Cebu Pacific’s decision to continue with their GTF engines, emphasizing the engine’s fuel efficiency and sustainability benefits. “Our GTF™ engines are well-positioned to support Cebu Pacific’s growth ambitions while delivering exceptional performance and environmental advantages,” said Rick Deurloo, president of commercial engines at Pratt & Whitney.
Last year, Cebu Air has shown substantial recovery from deleterious impact of the COVID-19 pandemic and has moved to rebuild its capital base that has been sent to a deficit by the ill effects on operation of the travel restrictions imposed globally to prevent the spread of the virus.
