Cebu Pacific (CEB), the Philippine’s leading carrier, has signed a binding Memorandum of Understanding (MOU) with Airbus for the purchase of up to 152 A321neo aircraft for USD $24 billion (PHP 1.4 trillion) based on list prices, the largest aircraft order in Philippine aviation history.
CEB has selected Pratt & Whitney GTF™ engines to power the future aircraft. The MOU covers firm orders for up to 102 A321neo, plus 50 A320neo Family purchase rights.
“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,” according to Michael Szucs, Cebu Pacific Chief Executive Officer, emphasizing the strategic flexibility the order provides. This flexibility is crucial in an industry marked by rapid changes and varying market dynamics.
Cebu Airbus Fleet
“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 finalize this transaction is expected to be completed in the third quarter of the year.
AvGeek Philippines has described the transaction as “a monumental move set to reshape Philippine aviation which represents the largest aircraft order in the history of Philippine aviation.AVGeek PH said the purchase agreement, which is expected to be finalized by the third quarter of the year, will not only bolster Cebu Pacific’s fleet but also position the airline to better serve the growing passenger and cargo demand within the region. This acquisition is poised to enhance Cebu Pacific’s competitive edge, enabling it to offer more efficient and frequent services to its expanding customer base.
