3 October 2024
Low Cost Carrier CEBU Pacific (CEB) has signed the biggest aircraft purchase agreement with Airbus powered by Pratt & Whitney 1100 GTF engines Wednesday, comprising firm order of 102 aircraft, with purchase options of another 50 A321neo aircraft totaling purchase rights of 152 A321neo aircraft by 2033.
The new acquisition order which has a minimum commitment of 70 airbus aircraft is the largest procurement in Philippine aviation history, valued at approximately US$24 billion (P1.4 trillion) based on list prices for the entire 152 aircraft order.
The CEB order comprises the normal variant of A321neo which 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,” said Benoît de Saint-Exupéry, executive vice-president for sales of commercial aircraft business at Airbus.
The purchase agreement was signed in Manila by Mike Szucs, CEO of Cebu Pacific and Benoît de Saint-Exupéry, EVP Sales of the Commercial Aircraft business at Airbus.
Cebu Pacific CEO Michael Szucs said Airbus would deliver the initial batch of A321neos in 2029. The European plane maker aims to complete all of the commitments in 2033, and from there, Cebu Pacific may tap its purchase rights to order more.
Szucs said most of the aircraft would be assigned to serve flights from New Manila International Airport if the gateway is operational by the time the ordered jets begin coming in.
Beyond its Manila network, Cebu Pacific intends to expand its fleet by establishing hubs in Clark, Cebu in Davao, Iloilo and Cagayan de Oro.
The airline will still receive 22 new Airbus aircraft, six of them comprising wide-bodies, spread for delivery until 2028.
Szucs said Cebu Pacific is currently strengthening its hub in Cebu, Davao, and recently Iloilo.
CEB said it would source the pre-delivery payments from its own equity while they intend to tap the lessor market to settle the bill under sale-leaseback transaction when they arrive in 2029.
Currently, the airline operates nine A330s, 40 A320s, 23 A321s and 15 turboprops in its fold, excluding 5 ATR aircraft operated by Swift Air which it recently acquired.
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