BIG WINNER In the end, Cebu Pacific chose Airbus over Boeing. —PHOTO FROM CEBU PACIFIC
Airbus has won the $24-billion (P1.4-trillion) purchase order by Cebu Pacific for up to 152 A321neo (new engine option) jets, the biggest in Philippine aviation history.
In a statement on Tuesday, the Gokongwei-led airline said it had signed the binding memorandum of understanding (MOU) with Airbus, which edged out rival Boeing.
The purchase agreement is eyed to be finalized by the third quarter of this year.
READ: Airbus wins Cebu Pacific 152-aircraft purchase order worth $24B
It also tapped Pratt & Whitney GTF engines to power the ordered aircraft, consisting of up to 102 A321neo and 50 A320neo purchase rights.
“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,” Cebu Pacific CEO Michael Szucs said.
The MOU was signed about nine months after the low-cost carrier first disclosed to the Inquirer its plan to augment its fleet in response to projected air travel demand growth.
Increased cost
In addition, some of its aircraft had been parked for a longer period due to delayed maintenance as the global aviation sector grapples with the lack of spare parts.
The final purchase order costs twice as much as the initial $12-billion acquisition for 100 to 150 aircraft.
Proposals for the aircraft order from Airbus and Boeing were sent to Cebu Pacific toward the end of last year, which were then subject for review.
READ: Cebu Pacific gets this year’s sixth additional aircraft
Earlier, Cebu Pacific said the first set of aircraft was expected to arrive as early as 2027 while the rest of the deliveries were slated to be completed by 2035.
Last month, Cebu Pacific took delivery of ATR 72-600, the sixth out of 18 aircraft it is set to receive this year.
The turboprop aircraft will be used to service inter-island travels accessible only by smaller aircraft. ATR 72-600, which only carries around 78 passengers, can land on short, narrow and unpaved runways.
The airline currently has 15 turboprops, eight Airbus 330s, 39 Airbus 320s and 21 Airbus 321s.
Cebu Pacific has earmarked a P60-billion budget for aircraft-related spending.
The company saw its first-quarter net earnings more than double to P2.24 billion on the back of busier operations. Passenger revenues, in particular, improved by 25 percent to P18 billion as volume grew by 14 percent to 5.5 million passengers.
The airline services over 35 domestic and 24 international destinations.