Cebu Pacific (CEB),
Airbus, and
Pratt & Whitney (an
RTX business), held an official ceremony to commemorate a memorandum of understanding (MoU) signed for CEB’s purchase of up to 152 A321neo aircraft for an estimated $24 billion based on list prices — the largest aircraft order in Philippine aviation history.
The binding MoU covers firm orders for up to 102 A321neo, plus 50 A320neo family purchase rights. CEB has selected Pratt & Whitney GTF engines to power the aircraft.
Michael Szucs, chief executive officer of CEB, said: “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. 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.”
Airbus said the MoU is a testament to the airline’s confidence in its products and a positive signal for the aviation industry’s recovery. Benoît de Saint-Exupéry, executive vice president sales of Commercial Aircraft at Airbus, said: “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.”
Pratt & Whitney expressed gratitude for CEB’s continued confidence in the GTF engine, which the airline initially selected in 2012. Rick Deurloo, president of Commercial Engines at Pratt & Whitney, said: “This latest order demonstrates the growing opportunities for aviation in the Philippines and the larger Asia Pacific region. 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 purchase agreement to finalise this transaction is expected to be completed in the third quarter of this year.