Cebu Pacific, the Philippines’ leading low-cost carrier, has signed a purchase agreement with Airbus for up to 152 A321neo aircraft, marking the largest order in Philippine aviation history.
The deal, announced on October 2, 2024, includes firm orders for 70 A321neo planes and options for an additional 82 aircraft from the A320neo Family.
The agreement, valued at approximately $24 billion based on list prices, also includes an engine contract with Pratt & Whitney, an RTX business, to equip the new aircraft with GTF engines.
Michael Szucs, CEO of Cebu Pacific, said, “The selection of Airbus and Pratt & Whitney underscores our focus on operational efficiency, sustainability, and innovation, ensuring that we continue to deliver the highest standards of service while significantly reducing our carbon footprint.”
Szucs says he hopes to exercise its remaining options for Airbus jets; however, the airline chief said that future decision lies entirely on the status quo of the Philippine airline industry.
The airline currently operates 61 A320 Family aircraft on regional routes and nine A330 widebodies for high-density routes in Asia and the Middle East.
Benoît de Saint-Exupéry, executive vice president of sales at Airbus Commercial Aircraft, stated, “The A321neo is highly regarded for its unparalleled economics, performance and fuel efficiency. We’re confident that these additional A321neo will contribute strongly to the all-Airbus operator’s next phase of expansion as one of Asia-Pacific’s leading low-cost carriers.”
According to Airbus, the A321neo offers a 50% noise reduction, and more than 20% fuel savings compared to previous generation single-aisle aircraft.
The European planemaker has received over 6,500 orders for the A321neo from more than 90 customers worldwide.
Airbus has committed deliveries for Cebu Pacific’s orders beginning 2029, at a minimum, according to Szucs. This could be expedited depending on the current backlog and delivery slots.
This massive fleet expansion is expected to support the airline’s plans to increase its network reach and frequency, potentially opening up new routes and strengthening its position in existing markets.
In October this year, Cebu Pacific is set to open flights on 18 new routes from its Cebu, Clark, Davao, and Iloilo hubs.
The improved efficiency of the A321neo could also allow Cebu Pacific to offer more competitive fares, further stimulating air travel demand in the region.
Cebu Pacific, which began operations in 1996, has flown over 200 million passengers since its inception.
The airline serves 35 domestic destinations in the Philippines and 26 international destinations across Asia, Australia, and the Middle East.
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