Cebu Pacific Signs Purchase Agreement For Up To 152 A321 Neos, Valued At US$24 Bln

MANILA, Cebu Pacific, the Philippines' low-cost carrier, has signed a landmark purchase agreement with Airbus and Pratt and Whitney for up to 152 A321neo aircraft, equipped with Pratt and Whitney GTF engines. Cebu Pacific chief executive officer Mike Szucs said the agreement with Airbus covers firm orders for up to 102 A321neos, plus 50 A320neo family purchase rights. 'This acquisition, which has a minimum commitment of 70 aircraft, is the largest in Philippines' aviation history, valued at approximately US$24 billion based on the list price for the entire 152-aircraft order,' he said at a press conference after a purchase agreement signing ceremony with Cebu Pacific, Airbus and Pratt and Whitney today. The agreement was signed in conjunction with the 2024 Aviation Summit Philippines. Szucs said the first order is scheduled to arrive in 2029. While waiting for the aircraft to arrive in the next five years, the carrier awaits the remaining 29 backlog orders made previously with Airbus. 'This purchase agr eement reflects Cebu Pacific's unwavering optimism for the future of air travel and its steadfast commitment to meet the evolving needs of passengers. "We may take deliveries on a leasing contract or we may fund it via a financing institution,' he said. Hence, he said the low-cost carrier is confident to grow its top-line revenue with this sizeable investment. He also noted that 70 per cent of the routes were based within the Philippines. Therefore, circumstances like geopolitical instability will not affect the airline. Meanwhile, Airbus sales of commercial aircraft business executive vice-president Benoît de Saint-Exupéry is confident that the additional A321neos will make a strong contribution to the all-Airbus operator's next expansion phase as one of Asia-Pacific's leading low cost carriers. 'Cebu Pacific operates 61 A320 Family aircraft on its extensive regional network. Additionally, it flies nine A330 widebodies on high density routes in the region, and in the Middle East,' he said. Source: BER NAMA News Agency