Cebu Pacific, Airbus, and Pratt & Whitney, held an official ceremony to commemorate a memorandum of understanding (MoU) signed for the airline’s purchase of up to 152 A321neo aircraft at the Farnborough International Airshow 2024.
Based on current list prices, the purchase is estimated at PHP 1.4 trillion (USD $24 billion), the largest aircraft order in Philippine aviation history.
The binding MoU covers firm orders for up to 102 A321neo, plus 50 A320neo family purchase rights. The Philippine low-cost carrier has selected Pratt & Whitney GTF engines to power the future aircraft.
“The order is designed to give Cebu Pacific the flexibility to choose between the A321neo and A320neo aircraft as needed, helping us adapt to market changes,” Michael Szucs, Chief Executive Officer of Cebu Pacific, said in a statement.
“This deal is a significant milestone in our ongoing mission to make air travel more accessible and affordable for everyone while supporting the Philippine growth story,” Szucs added.
Airbus said the MoU is a testament to the airline’s confidence in its products and a positive signal for the aviation industry’s recovery.
“We thank Cebu Pacific for its ongoing confidence in Airbus and its products. These latest generation aircraft will enable the carrier to reduce its operating costs and continue to offer low fares in a competitive market environment. We look forward to continuing to work with the airline as it builds on its position as one of the leading low-cost carriers in the Asia-Pacific region,” said Benoît de Saint-Exupéry, Executive Vice President Sales of Commercial Aircraft at Airbus.
Pratt & Whitney expressed gratitude for Cebu Pacific’s continued confidence in the GTF engine, which the airline initially selected in 2012.
“This latest order demonstrates the growing opportunities for aviation in the Philippines and the larger Asia Pacific region,” said Rick Deurloo, President of Commercial Engines at Pratt & Whitney.
“Our GTF engine will power this growth while delivering industry-leading fuel efficiency and sustainability benefits for single-aisle aircraft. Cebu Pacific’s order attests to the value it provides,” Deurloo added.
The purchase agreement to finalize the transaction is expected to be completed in the third quarter of 2024.
In April 2024, Cebu Pacific unveiled a brand-new Airbus A320neo, the fourth new aircraft delivery for the airline. The carrier also announced its plans to operate an all-neo fleet by 2028.
