Cebu Pacific has announced the signing of a binding Memorandum of Understanding (MoU) with Airbus for the purchase of up to 152 A320neo Family aircraft. The deal is valued at up to $24 billion at list prices.
On Tuesday (July 2, 2024), Cebu Pacific (CEB) announced that they have signed a binding Memorandum of Understanding (MoU) with Airbus for the purchase of up to 152 A320neo Family aircraft. Based on list prices, the deal is valued at up to PHP 1.4 trillion (US $24 billion), and represents the largest aircraft order ever in Philippine aviation history. The MoU includes firm orders for 102 A321neos, plus 50 A320neo Family options. Cebu Pacific has selected Pratt & Whitney GTF™ engines to power the future aircraft.
In Tuesday’s announcement, Cebu Pacific’s Chief Executive Officer, Michael Szucs, said
“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. 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 purchase agreement to finalize the transaction is expected to be completed in Q3 2024.
By 2028, Cebu Pacific plans on transitioning their entire fleet to Airbus A320neo and A330neo Family aircraft. The latest generation neo aircraft offer at least a 15 percent reduction in fuel burn and emissions compared to the aircraft they replace. Cebu Pacific currently offers service to 35 domestic and 24 international destinations across Asia, Australasia, and the Middle East.
Source: Cebu Pacific
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