Cebu Pacific Will Spend Up to P1.4 Trillion in ‘Largest Aircraft Order in Philippine History’

Cebu Pacific intends to spend a whopping P24 billion, or about P1.4 trillion, for its planned fleet modernization program, the company announced on Tuesday (July 2). It said this is the “largest aircraft order in Philippine aviation history.” 

In a disclosure to the stock exchange, the country’s largest budget carrier said it has signed a memorandum of understanding (MOU) with French aircraft manufacturer Airbus for the purchase of as many as 152 Airbus A321 new engine option (Neo) jets. 

ALSO READ

Gokongweis’ JG Summit Triples Core Net Income in 2023

Coming Soon: Manila to Kaohsiung, Taiwan Direct Flights

“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,” said Cebu Pacific CEO Michael Szucs. 

The memo encompasses firm orders for up to 102 A321neo aircraft, with an option to purchase an additional 50 A320neo family jets.  

To power these future planes, Cebu Pacific has chosen Pratt & Whitney's advanced GTF engines, whose supply woes have caused several carriers around the globe to park their jets pending maintenance, including Cebu Pacific. 

“When finalized, the deal will be a significant milestone for the local airline industry and a testament to Cebu Pacific’s unwavering commitment to support the Philippine growth story,” Szucs said.  

The purchase agreement is expected to be finalized in the third quarter of the year. 

Cebu Pacific first announced the idea of ordering a massive fleet of jets last year and previously considered acquiring Boeing jets as well.  

Cebu Pacific currently operates a diversified commercial fleet that includes eight Airbus 330s, 39 Airbus 320s, and 21 Airbus 321s, and 15 turboprops.  

The Gokongwei-owned airline flies to 35 domestic and 25 international destinations across Asia, Australia, and the Middle East.