In a monumental move set to reshape Philippine aviation, Cebu Pacific (CEB), the country’s leading airline, has entered into a binding Memorandum of Understanding (MOU) with Airbus. The agreement outlines the purchase of up to 152 A321neo aircraft, a deal valued at US$24 billion (PHP1.4 trillion) at list prices. This transaction represents the largest aircraft order in the history of Philippine aviation.
Under the terms of the MOU, Cebu Pacific has committed to firm orders for 102 A321neo aircraft, with an additional 50 A320neo Family purchase rights. This significant acquisition underscores Cebu Pacific’s strategic vision and ambition to enhance its fleet capacity in alignment with evolving market demands.
Key to this acquisition is the selection of Pratt & Whitney GTF engines to power the future fleet. These advanced engines are known for their fuel efficiency and lower emissions, aligning with Cebu Pacific’s goals of sustainable growth and cost-effective operations.
“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,” according to Michael Szucs, Cebu Pacific’s Chief Executive Officer, emphasizing the strategic flexibility the order provides. This flexibility is crucial in an industry marked by rapid changes and varying market dynamics.
Szucs further highlighted the significance of the deal for the local aviation sector, “When finalized, the deal will be a significant milestone for the local airline industry and a testament to CEB’s unwavering commitment to support the Philippine growth story.”
The purchase agreement, which is expected to be finalized by the third quarter of the year, will not only bolster Cebu Pacific’s fleet but also position the airline to better serve the growing passenger and cargo demand within the region. This acquisition is poised to enhance Cebu Pacific’s competitive edge, enabling it to offer more efficient and frequent services to its expanding customer base.