Cebu Pacific (CEB) announced a monumental deal with Airbus to acquire up to 152 A321neo aircraft, marking the largest single aircraft order in the country’s aviation history. The agreement, valued at an estimated US$24 billion (PHP1.4 trillion), is a testament to CEB’s aggressive expansion plans and commitment to providing affordable air travel to its growing customer base.
To power its new fleet, Cebu Pacific has selected Pratt & Whitney GTF™ engines, renowned for their fuel efficiency and lower noise emissions. This strategic decision aligns with the airline’s sustainability goals and its efforts to reduce its environmental impact.
“The order is designed to give Cebu Pacific the flexibility to choose between the A321neo and A320neo aircraft as needed, helping us adapt to market changes. This deal is a significant milestone in our ongoing mission to make air travel more accessible and affordable for everyone while supporting the Philippine growth story,” according to Michael Szucs, Chief Executive Officer at CEB.
The acquisition of the A321neo aircraft is expected to bolster Cebu Pacific’s position as a leading low-cost carrier in the Asia Pacific region. With its increased capacity and fuel efficiency, the airline will be able to serve more destinations, both within the Philippines and abroad, while maintaining its competitive edge in terms of pricing.
Airbus expressed its delight in partnering with Cebu Pacific on this landmark deal. “We thank Cebu Pacific for its ongoing confidence in Airbus and its products. These latest-generation aircraft will enable the carrier to reduce its operating costs and continue to offer low fares in a competitive market environment. We look forward to continuing to work with the airline as it builds on its position as one of the leading low-cost carriers in the Asia-Pacific region,” said Benoît de Saint-Exupéry, Executive Vice President, Sales of Commercial Aircraft at Airbus.
Pratt & Whitney also welcomed the news, highlighting the GTF engine’s ability to deliver exceptional performance and environmental benefits. “This latest order demonstrates the growing opportunities for aviation in the Philippines and the larger Asia Pacific region. Our GTF™ engine will power this growth while delivering industry-leading fuel efficiency and sustainability benefits for single-aisle aircraft. Cebu Pacific’s order attests to the value it provides,” said Rick Deurloo, President of Commercial Engines at Pratt & Whitney.
The final purchase agreement for the aircraft is expected to be finalized by the end of the third quarter of 2024. Once delivered, the new A321neo aircraft will gradually replace Cebu Pacific’s older fleet, enabling the airline to modernize its operations and improve overall efficiency.