President Marcos called Cebu Pacific’s (CEB) multi-billion dollar plan to acquire 152 A32neo aircrafts a “very good sign” for the Philippine economy as it can bring significant transformations.
President Ferdinand 'Bongbong' Marcos Jr. during his meeting with Cebu Pacific officials in Malacañang on Tuesday, July 2, 2024. (Photo from the Presidential Communications Office)
During a courtesy call at Malacañan Palace on Tuesday, July 2, the Chief Executive hailed CEB for the largest aircraft order in Philippine aviation history.
“It gives us great deal of encouragement that if we get it right, we can actually get something done and make the transformation of our economy. Make it happen,” Marcos said.
This came after Cebu Pacific, which led the domestic airline market with 54 percent market share, signed a binding memorandum of understanding (MOU) with Airbus for the purchase of up to 152 A32neo aircrafts for US$24 billion based on set prices.
CEB Chief Executive Officer Michael Szucs said that this is an indication of the company’s confidence in the Philippine economy.
“This is an enormously a bold step. We wouldn’t be doing it without having confidence in the direction the country is going,” he told the President.
Szucs added that the deal, once finalized, will be a significant milestone for the local airline industry.
It will also be a testament to CEB’s unwavering commitment to support the country’s growth, he furthered.
Szucs sees that the fleet expansion plans will provide CEB the flexibility to not only grow its fleet, but also adapt to market conditions.
The company’s market share of 54 percent is followed only by Philippine Airlines, with 29 percent, and AirAsia, with 17 percent.
CEB’s first quarter 2024 revenue reached P25.3 billion with total assets at about P200 billion.
In February 2024, CEB was awarded Best Airline at the Routes Asia 2024 Awards in recognition of its contributions to airport and destination marketing in the Asia Pacific region.
It was also cited for the resumption of its Clark hub operations and launching of 15 domestic and international destinations in April last year.
The courtesy call at Malacañan Palace was also attended by Lance Gokongwei, president and CEO of JG Summit Holdings, Inc., which owns Cebu Pacific.
During the meeting, the CEB officials informed Marcos of the company’s investment plans and government support to keep the Philippine aviation industry competitive.