Cebu Pacific signs P1.4-T aircraft purchase deal

Gokongwei-led budget carrier Cebu Pacific on Wednesday signed an agreement with Airbus and Pratt & Whitney for its landmark purchase of 152 aircraft worth over a trillion pesos.

ATM: Cebu Pacific, Airbus, and Pratt & Whitney sign the agreement for the airline’s “historic” aircraft order. pic.twitter.com/GNdehHniR6

— Ted Cordero (@Ted_Cordero) October 2, 2024

At a ceremony in Pasay City, Cebu Pacific CEO Michael Szucs, Airbus Commercial Aircraft Business executive vice president Benoît de Saint-Exupéry, and Pratt & Whitney Commercial Engines president Rick Deurloo signed the purchase deal for the airlines’ order of up to 152 aircraft, which will be powered by Pratt and Whitney engines.

Under the agreement, Airbus is set to deliver 102 A321neo and another 50 A320 Family aircraft to Cebu Pacific.

The acquisition has a minimum commitment of 70 aircraft.

The deal was said to be the “largest in Philippine aviation history,” with a value of approximately $24 billion or P1.4 trillion.

“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,” said Szucs.

“This milestone signals our ongoing dedication to expanding air travel accessibility and affordability, while supporting the Philippines' broader economic growth and connectivity goals,” added Szucs.

Airbus, meanwhile, said Cebu Pacific’s order represents the airline’s confidence in the aircraft maker’s products.

“The A320 Family has supported Cebu Pacific’s domestic and short-haul international network growth over the last two decades. We’re grateful to the airline for its continued endorsement of our bestselling single-aisle product line,” said de Saint-Exupéry.

“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,” added de Saint-Exupéry. 

Pratt & Whitney’s Deurloo, likewise, said that the order “demonstrates the growing opportunities for aviation in the Philippines and the larger Asia Pacific region.”

“The GTF engine will enable Cebu Pacific to continue to expand the number of routes it offers to passengers, while delivering industry-leading fuel efficiency and sustainability benefits,” said Deurloo. 
—RF, GMA Integrated News