Budget carrier Cebu Pacific (CEB) placed the most significant aircraft order in Philippine aviation history, purchasing 152 aircraft from Airbus worth P1.4 trillion ($24 billion).
"The order is designed to provide CEB with maximum flexibility to adapt fleet growth to market conditions, with the ability to switch between the A321neo and A320neo," CEB chief executive officer Michael Szucs said in a disclosure filed Tuesday.
The Gokongwei-led airline orders up to 102 A321neo and 50 A320neo.
CEB has also selected Pratt & Whitney GTF engines to power future aircraft.
Meanwhile, the purchase agreement is expected to be completed in the third quarter of this year.
"When finalized, the deal will be a significant milestone for the local airline industry and a testament to CEB's unwavering commitment to support the Philippine growth story," the airline said.
'Perfect sign' for economy
President Ferdinand R. Marcos Jr. welcomed CEB's multi-billion-dollar plan to acquire new aircraft from Airbus.
The President told CEB officials during their courtesy call in Malacañang Tuesday that their plan "is a perfect sign" for the Philippine economy.
"It gives us a great deal of encouragement that if we get it right, we can get something done and transform our economy. Make it happen," President Marcos said.
Szucs said the order indicates the company's confidence in the Philippine economy.
"This is an enormously bold step. We wouldn't be doing it without confidence in the country's direction," Szucs told President Marcos.
The CEB officials led by Lance Gokongwei, President and chief executive officer of JG Summit Holdings, Inc., which owns Cebu Pacific, informed President Marcos of its investment plans and government support to keep the Philippine aviation industry competitive.
Szucs said the company led the domestic airline market with a 54% market share, followed by Philippine Airlines (29%) and AirAsia (17%). Its first quarter 2024 revenue reached P25.3 billion, and its total assets were about P200 billion.
CEB was awarded Best Airline at the Routes Asia 2024 Awards in February 2024 in recognition of its contributions to airport and destination marketing in the Asia Pacific region, specifically the resumption of its Clark hub operations and launching of 15 domestic and international destinations in April last year.
Currently, CEB flies to 35 domestic and 25 international destinations.
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