MANILA, Philippines —Budget carrier Cebu Pacific is taking its time to carefully review the proposals from jet manufacturers Airbus and Boeing for its $12-billion aircraft order, now targeting to pick one by the first half of 2024.
Xander Lao, president and chief commercial officer of the Gokongwei-led airline, told reporters on Tuesday they do not have a “hard deadline” for closing the deal to acquire 100 to 150 aircraft in line with a goal of increasing passenger capacity.
“We have to be very deliberate with our process in order to make sure we come to the best economic deal,” Lao said.
Cebu Pacific previously targeted to seal the deal by the first quarter this year.
READ: Cebu Pacific to buy 100-150 jets worth $12B in biggest aircraft deal in PH history
“We’re not in a rush,” he stressed. “The process is really going back and forth with key suppliers.”
Last October, the low-cost airline told the Inquirer its planned aircraft order will be the biggest one in Philippine aviation history.
If the plan pushes through, the first batch of jets is expected to arrive as early as 2027 while the rest is slated for delivery until 2035.
The company said it was strategic to make the purchase order as the government pushes for airport projects outside Metro Manila, including the New Manila International Airport in Bulacan.
The airline also said earlier it was looking into establishing bases in Kalibo and Bohol, among others, where airports are in the process of upgrading.
READ: Cebu Pacific completes aircraft deliveries for 2023
Cebu Pacific has a fleet of 77 jets as of end-2023. In addition, it recently received two aircraft under a five-month lease agreement with Bulgaria Air. These will service Cebu and Davao routes.
By the end of 2024, the company intends to have expanded its fleet to 92 aircraft. Cebu Pacific is expecting delivery of 14 aircraft this year.
Also, Cebu Pacific is eyeing to grow its passenger capacity by 8 percent this year with the aircraft deliveries and opening of more routes.
Lao is optimistic about the prospects of the aviation sector as consumer spending has remained strong.
The company has programmed P50 billion in capital expenditures for mostly aircraft-related spending this year.
As it beefs up its fleet, Cebu Pacific and the rest of the aviation sector continues to grapple with supply chain crunch that has left several aircraft grounded.