Cebu Pacific places P1.4-T order for Airbus jets
European jet maker Airbus will start delivering by 2029 the first batch of aircraft ordered by Cebu Pacific, which has been beefing up its fleet to strengthen domestic operations.
On Wednesday evening, Cebu Pacific, Airbus and engine manufacturer Pratt & Whitney signed the budget carrier’s landmark P1.4-trillion aircraft order for up to 152 jets, the biggest deal in Philippine aviation history.
This came about three months after the parties inked a binding memorandum of understanding for the purchase of A321neo (new engine option) aircraft.
Mike Szucs, CEO of the Gokongwei-led airline, said during the signing ceremony in Pasay they had set a minimum commitment of 70 aircraft, explaining the airline can order more depending on the travel demand moving forward.
The transaction will be paid via cash and debt financing. The airline does not see the need to raise capital to settle this order.
“This milestone signals our ongoing dedication to expanding air travel accessibility and affordability, while supporting the Philippines’ broader economic growth and connectivity goals,” he said.
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Szucs said the additional aircraft would allow them to have a firmer foothold outside Metro Manila, citing Davao, Cebu and Clark.
Article continues after this advertisementIn addition, he is looking forward to expanding their operations in the New Manila International Airport in Bulacan, which is still undergoing development.
“We’re confident that these additional A321neo will contribute strongly to the all-Airbus operator’s next phase of expansion as one of Asia-Pacific’s leading low-cost carriers,” said Benoît de Saint-Exupéry, executive vice president for sales of commercial aircraft business at Airbus.
The airline serves over 35 domestic and 24 international destinations.
This October, the low-cost carrier will launch its Manila-Chiang Mai route—the only direct flight from the Philippines to the popular northern Thai city.
Cebu Pacific also recently launched flights from Manila to Don Mueang in Bangkok and routes from Cebu to Don Mueang, Osaka, Masbate and San Vicente.
In September, Cebu Pacific took delivery of its 12th aircraft for the year. It currently operates nine Airbus 330s, 40 Airbus 320s, 23 Airbus 321s and 15 ATR turboprop aircraft.
The airline saw its first-quarter net earnings more than double to P2.24 billion on the back of busier operations. Passenger revenues, in particular, surged by 25 percent to P18 billion as volume jumped by 14 percent to 5.5 million passengers.
