Low-cost carrier Cebu Pacific (CEB) announced that it has sealed the largest aircraft order in Philippine aviation history, amounting to $24 billion or P1.4 billion, with the European aerospace giant Airbus.
In a disclosure to the Philippine Stock Exchange, CEB said that the airline has signed a binding memorandum of understanding (MOU) with Airbus for the purchase of up to 152 A321neo aircraft.
It added that it has chosen Pratt & Whitney GTF™ engines to power the upcoming aircraft.
The MOU includes firm orders for up to 102 A321neo aircraft, along with 50 purchase rights for A320neo Family planes.
“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,” said CEB Chief Executive Officer Michael Szucs.
He added that, “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 to complete this transaction is anticipated to be finalized in the third quarter of this year.
Cebu Pacific said earlier that it aims to more than double its fleet by 2035 to take advantage of a long-term travel boom across Southeast Asia following the COVID-19 pandemic.
It currently operates a fleet of 78 aircraft consisting of 64 Airbus and 14 ATR planes and this will increase to a total of 92 by end-2024.