Cebu Pacific Airways — the Philippines-based low-cost carrier — inked an agreement with Airbus for up to 152 A321neos for $24 billion at list prices. The deal could be the largest order in Philippine aviation history and finalized in the third quarter of 2024. The new aircraft will be powered by Pratt & Whitney GFT engines, according to Forbes.
It is widely rumored that the airline could finalize a contract for 100 – 150 aircraft by the end of June. According to Reuters, Cebu Pacific will choose a combination of Boeing 737 MAX 8-200s and 737 MAX 10s or Airbus A320neos and A321neos. The airline currently owns a fleet of over 70 aircraft, ranging from Airbus to ATR turboprop. However, it doesn’t own a Boeing aircraft thus far.
“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,” Michael Szues, CEO of Cebu Pacific, said in the statement.
The no-frills airline got into gear and revealed that it will add 17 jets this year. Earlier this year, Cebu Pacific welcomed its fifth aircraft, an Airbus A320neo. The new aircraft is believed to operate more sustainably and use 15% less fuel per flight compared to the previous batch. The airline expects to achieve a fleet count of 92, expecting 17 aircraft deliveries for the year.
“Adding another neo aircraft to our growing fleet supports our goal of reducing our carbon footprint. We’re proud to take a more proactive approach in minimizing our environmental impact, all the while addressing the ongoing demand for air travel,” Alex Reyes, Chief Strategy Officer of the airline, said.
The airline is looking to have an all-A320neo series fleet by 2028.
Increased Service at Manila Airport
In addition, Manila’s Ninoy Aquino International Airport (NAIA) is aiming to increase its aircraft movement limit in the near future. Cebu Pacific could stand to benefit from the new policy, operating to 29 domestic destinations and 23 international cities from NAIA.
“Per incremental movement per hour, that means we can base one or two more aircraft in Manila, basically adding lines of flying,” Alexander Lao, the president and chief commercial officer of the airline, told Philstar.
Earlier this year, San Miguel Corporation and NAIA Infrastructure Corp were granted the concession to operate NAIA for 15 years, with a 10-year extension based on its performance.
