Budget carrier Cebu Pacific on Thursday signaled air fares could inflate once the new concession at the Ninoy Aquino International Airport (NAIA) implements the revised airport charges.
“I think fares will have to be adjusted to account for these factors. [But] I think we have to wait and see. Let’s see what happens at NAIA,” Xander Lao, Cebu Air Inc. president and chief commercial officer told reporters on the sidelines of ceremonies marking the purchase of 152 additional Cebu Pacific aircraft.
He noted the government has not changed the airport fee structure the past 20 years or so because of promised improvements that come with its privatization.
“That’s not new, and not just at the NAIA but also in other airports in the Philippines like Cebu, Clark and others,” Lao said.
According to him, the airline recognizes the importance of investing in the physical and operational improvements of airports. He said the airline looks forward to collaborating closely with the New NAIA Infra Corp. for the benefit of passengers.
“We are optimistic that these enhancements will lead to more efficient operations and improved services, benefiting both passengers and airlines in the long term,” Lao said.
In a separate development, Cebu Pacific Wednesday night signed a landmark purchase agreement with Airbus and Pratt & Whitney, an RTX business, for up to 152 A321neo aircraft, equipped with Pratt & Whitney GTF engines.
The agreement covers firm orders for up to 102 A321neo aircraft plus 50 A320 neo family purchase rights or options.
This acquisition, which has a minimum commitment of 70 aircraft, is the largest in Philippine aviation history, valued at some USD24 billion (P1.4 trillion) based on the listed price for the entire 152 aircraft order.
“The selection of Airbus and Pratt & Whitney underscores our focus on operational efficiency, sustainability, and innovation, ensuring that we continue to deliver the highest standards of service while significantly reducing our carbon footprint,” Michael Szucs, chief executive officer at Cebu Pacific, said.
“This milestone signals our ongoing dedication to expanding air travel accessibility and affordability, while supporting the Philippines’ broader economic growth and connectivity goals,” he added.
