MANILA, Philippines – Cebu Pacific has finalized its landmark purchase of up to 152 aircraft, which are expected to be delivered starting 2029.
On Wednesday, October 3, the budget airline inked a $24-billion purchase agreement to acquire up to 152 aircraft with Pratt & Whitney GTF engines. It is considered the biggest aircraft order in Philippine aviation history.
“We’ve got a lot of flexibility in this order that we’ve just made and the firm commitment of 70 [aircraft] starts in 2029 and goes through I think about 2033,” Michael Szucs, chief executive officer of Cebu Pacific, said in a press conference on Wednesday, October 3.
“But then we’ve got purchase rights beyond there and also, we’ve got the ability to bring some aircraft in ahead of that 2029 date.”
Cebu Pacific has firm orders for 102 A321 neo planes and purchase rights for 50 A320neo Family aircraft.
Airbus has been Cebu Pacific’s partner over the last 20 years and has vowed to provide further support — such as trainings — for the company following its new order.
Meanwhile, the budget airline also sees the deliveries to come in at an opportune time with the construction of the Bulacan International Airport. The new airport is expected to start operating by 2028. (READ: San Miguel’s Bulacan airport, MRT7 delayed until 2028)
San Miguel Corporation’s (SMC) planned 2,500-hectare “aerocity” is seen to decongest the already deteriorating Ninoy Aquino International Airport (NAIA).
“We need to have an entirely new set of aircraft to come in and take up the opportunity that sits at Bulacan so that’s a major growth that we need to put in to coincide with that,” Szucs said.
Cebu Pacific also noted it cannot just abandon NAIA and take its fleet elsewhere as it anticipates more growth and development following the SMC takeover. (READ: NAIA now turned over to San Miguel’s group. Here’s what to expect.)
Aside from Luzon, the company also pointed out other opportunities in Iloilo and Davao. “That’s an indication of how we see growth not just in Manila, that is substantial in itself, but the opportunity that sits across the whole of this archipelago so that’s why we made the sizeable order.”
The airline had a total of 87 aircraft in its operating fleet as of end-March 2024. Cebu Pacific has 20 Airbus CEO planes, 30 Airbus NEO planes, and 2 ATR 72-600 planes, while it also owns 11 Airbus CEO planes, 10 Airbus NEO planes, 12 ATR 72-600 planes, and 2 ATR 72-500 planes.
Aside from the 152 aircraft order, the company has backlogs from previous orders, which it expects to be delivered in the next two to three years.
Cebu Pacific has 22 outstanding orders from previous transactions, some of which are A330s, while others are narrow-body aircraft. — Rappler.com
