AFP – Philippine carrier Cebu Pacific said yesterday it will buy up to 152 Airbus planes worth USD24 billion in a deal it described as the “largest aircraft order” in the country’s aviation history.
“The order is designed to provide Cebu Pacific with maximum flexibility to adapt fleet growth to market conditions, with the ability to switch between the A321neo and A320neo,” Cebu Pacific chief executive Michael Szucs said in a statement.
The company said it had signed a binding memorandum of understanding with Airbus that covered “firm orders” for up to 102 A321neo aircraft and purchase rights for 50 A320neo.
The order was worth USD24 billion based on list prices, it added.
Cebu Pacific said it would use Pratt and Whitney engines for the planes despite previously reporting problems with the firm’s engines that had forced the airline to ground at least 10 planes.
“When finalised, the deal will be a significant milestone for the local airline industry,” Szucs said.
The transaction would be finalised in the third quarter of the year, according to the statement.
Airlines have roared back after the Covid-19 pandemic, with passenger numbers and revenues expected to hit record highs this year, trade body International Air Transport Association (IATA) said in June. The IATA said nearly five billion passengers were expected to fly in 2024 and revenues would near USD1 trillion. But airlines are also facing a sharp rise in costs caused by shortages of parts and labour, and challenges related to climate change.
