Cebu Pacific (CEB) has entered a monumental agreement with Airbus and RTX’s Pratt & Whitney to purchase up to 152 A321neo aircraft, marking the largest aircraft order in Philippine aviation history.
The memorandum of understanding (MOU) was celebrated in a ceremony on July 22, 2024, at Farnborough, England.
The deal, valued at an estimated USD $24 billion (PHP 1.4 trillion) based on list prices, includes firm orders for up to 102 A321neo aircraft and 50 A320neo Family purchase rights. CEB has chosen Pratt & Whitney GTF™ engines to power these 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,” said Michael Szucs, CEO of Cebu Pacific.
“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.”
Benoît de Saint-Exupéry, executive vice president of sales for commercial aircraft at Airbus, highlighted the significance of the MOU for both companies.
“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.”
Rick Deurloo, president of commercial engines at Pratt & Whitney, expressed gratitude for CEB’s continued trust in the GTF engine. “This latest order demonstrates the growing opportunities for aviation in the Philippines and the larger Asia Pacific region,” Deurloo said.
“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.”
The formal purchase agreement to finalize the transaction is expected to be completed in the third quarter of this year.
