Cebu Pacific (CEB) announced a major expansion on Monday, signing a Memorandum of Understanding (MOU) with European planemaker Airbus for up to 152 A321neo aircraft.
The deal, valued at USD $24 billion (PHP 1.4 trillion) based on list prices, would be the largest aircraft order in Philippine aviation history.
The MOU includes firm orders for up to 102 A321neo aircraft and purchase rights for an additional 50 A320neo Family aircraft.
Pratt & Whitney GTF engines have been selected to power the new planes, according to the airline.
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 Szucs, cebu Pacific Chief Executive Officer
While the MOU signifies a significant step, a final purchase agreement is expected to be completed in the third quarter of 2024.
“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,” Szucs added.
Airbus emerged victorious in this blockbuster deal, outcompeting Boeing’s bid for the 737 MAX line. The two aerospace giants have been courting Cebu Pacific over the past few months since its requisition of proposals last year.
The low-cost carrier has since operated an all-Airbus fleet for both its narrowbody and widebody operations following the retirement of its Boeing 757-200 and McDonnell Douglas DC-9 aircraft.
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