CEB finalizes $2-B Airbus order

Published December 19, 2019, 12:00 AM

by manilabulletin_admin

By Emmie V. Abadilla

Cebu Pacific (CEB) signed a Purchase Agreement with Airbus SAS for the order of 15 A320NEO (New Engine Option) family aircraft worth USD2 Billion as it boosts capacity while shifting to more fuel-efficient and eco-friendly planes.

The 15-aircraft order includes up to 10 A321XLR (Xtra Long Range) jets, the world’s longest-range single-aisle aircraft.

The Purchase Agreement is part of CEB’s Memorandum of Understanding with Airbus in June 2019 during the Paris Air Show for an order of 31 next generation aircraft worth USD$6.8 billion.

The Purchase Agreement for 16 wide-body A330 NEO aircraft worth $4.8 billion was already finalized in October, and this latest Purchase Agreement completes the remaining part of the Memorandum of Understanding.

The aircraft are scheduled for delivery between 2021 and 2024. In half a decade, the airline expects to have an all-next generation fleet of Airbus jets.

Year-to-date, Cebu Pacific has accepted delivery of 10 brand-new aircraft—five Airbus A321NEO and four A320NEO; as well as an ATR 72-600.

The CEB fleet is comprised of a total of 75 aircraft, including seven Airbus A321CEO, 30 Airbus A320, eight A330, seven ATR 72-500, 12 ATR 72-600, and an ATR Cargo Freighter. The ATR aircraft is used by subsidiary Cebgo to service inter-island flights in the Philippines where jet operations are not possible.

The A330neo aircraft will be fitted with up to 460 seats, five percent more capacity than the current A330ceo aircraft in the CEB fleet. Cebu Pacific plans plans to use the aircraft on trunk routes within the Philippines and the rest of Asia, as well as on long-haul routes to Australia and the Middle East.

The new generation aircraft has as extended range capability of up to 15,000 kilometers, while reducing fuel consumption by as much as 25 per cent, versus older planes.

The carrier is expecting delivery of two more Airbus A321neo aircraft by the end of this year.

Overall, CEB has of one of the youngest fleets in the world, with an average fleet age of five years.

Cebu Air Inc. (CEB) is the largest carrier in the Philippine air transportation industry, offering its low-cost services to more destinations and routes with higher flight frequency within the archipelago.

CEB and subsidiary Cebgo fly to 37 domestic and 26 international destinations, with over 108 routes. The CEB network operates flights out of seven strategically placed hubs in the Philippines: Clark, Davao, Cagayan de Oro, Kalibo, Cebu, Iloilo and Manila.

A member of the International Air Transport Association (IATA), Cebu Pacific has achieved full compliance with IATA Operational Safety Audit (IOSA)—considered as the benchmark of the highest standards for safety in the airline industry, joining a roster of 429 airlines worldwide that have strictly complied with the most stringent of international standards governing aviation safety.