October 4, 2024 | 12:00am
MANILA, Philippines — Low-cost carrier Cebu Pacific will start receiving its new batch of Airbus aircraft in 2029, and plans to assign these units in some of the fast-growing hubs outside Manila.
Cebu Pacific recently signed the purchase agreement for 152 aircraft from Airbus, valued at $24 billion, making it the biggest plane order in Philippine aviation.
The acquisition covers firm order for 102 narrowbodies in the make of A321neos, with purchase rights for 50 more, providing Cebu Pacific with the flexibility to secure additional units.
At the signing, Cebu Pacific CEO Michael Szucs said Airbus would deliver the initial batch of A321neos in 2029. The European plane maker aims to complete all of the commitments in 2033, and from there, Cebu Pacific may tap its purchase rights to order more.
Further, Szucs said most of the aircraft would be assigned to serve flights from the Ninoy Aquino International Airport (NAIA). However, Cebu Pacific will send some of them to the New Manila International Airport if the gateway is operational by the time the jets begin coming in.
Szucs is confident Manila’s air traffic would balloon as NAIA is undergoing a P170.6-billion facelift care of San Miguel Corp.-led New NAIA Infrastructure Corp.
Beyond its Manila network, Cebu Pacific intends to expand its fleet in Clark and Cebu to support the growing demand in their airports.
The airline also sees an opportunity in the air travel trends in Davao, Iloilo and Cagayan de Oro, with catchments of 4.82 million, 3.05 million and 2.37 million, respectively.
As for funding, Szucs said Cebu Pacific would source the pre-delivery payments for this historic order from its own equity. Once the deliveries begin, the biggest Philippine carrier by passengers flown may tap the lessor market to settle the bill.
Between now and 2029, Cebu Pacific is still in the process of receiving 22 aircraft from Airbus. Currently, the airline manages one of the youngest fleets in the world, operating nine A330s, 40 A320s, 23 A321s and 15 turboprops in its fold.
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