CEB finalizes major aircraft deal; most jets arriving by 2029

By Ashley Erika O. Jose, Reporter

BUDGET CARRIER Cebu Pacific (CEB) has finalized its aircraft order with Airbus SE, making it the largest aircraft order in Philippine history.

“This milestone signals our ongoing dedication to expanding air travel accessibility and affordability, while supporting the Philippines’ broader economic growth and connectivity goals,” CEB Chief Executive Officer Michael B. Szucs said during a press briefing on Wednesday.

In July, Cebu Pacific, operated by Cebu Air, Inc., committed to purchasing up to 152 aircraft from Airbus, valued at P1.4 trillion ($24 billion).

Mr. Szucs said the company’s agreement with Airbus covers 102 A321 new engine option (NEO) and 50 A320neo family.

“The minimum commitment is for 70 aircraft. The first commitment will be by 2029, but there is a possibility that we could, under certain conditions, bring in some aircraft ahead of that timeline,” Mr. Szucs said.

CEB said previously that it had also selected Pratt & Whitney GTF engines to power its newly purchased aircraft.

“The selection of Airbus and Pratt & Whitney underscores our focus on operational efficiency, sustainability, and innovation, ensuring that we continue to deliver the highest standards of service while significantly reducing our carbon footprint,” Mr. Szucs said.

Airbus Executive Vice-President Benoît de Saint-Exupéry has expressed confidence that adding NEO aircraft to CEB’s fleet will support the budget carrier’s expansion of short-haul flights.

“We’re confident that these additional A321neo aircraft will contribute strongly to the all-Airbus operator’s next phase of expansion as one of Asia-Pacific’s leading low-cost carriers,” he said.

Airbus’ NEO aircraft is known for its enhanced fuel efficiency, representing the latest generation of Airbus planes designed to be highly compatible with sustainable aviation fuel (SAF).

“The GTF engine will enable Cebu Pacific to continue to expand the number of routes it offers to passengers, while delivering industry-leading fuel efficiency and sustainability benefits,” Pratt & Whitney President of Commercial Engines Rick Deurloo said.

Mr. Szucs said the budget carrier has assured that funding for the aircraft order is in place. Additionally, CEB is considering financial institutions to help finance the purchase.

“On the funding, anything around pre-delivery payments, essentially the cost that needs to be made will be made out of operating cash flow. That is how we always go,” Mr. Szucs said.

CEB aims to capture the growing travel demand in Manila, citing the recent takeover of Ninoy Aquino International Airport operations by New NAIA Infrastructure Corp., led by San Miguel Corp. (SMC).

“In terms of where we’re going to deploy this, we see a lot of development here in Manila. It is an enormous metropolis with great potential, and it’s now getting infrastructure development,” he said.

SMC is also developing the P740-billion Bulacan International Airport or the New Manila International Airport, which is expected to start to be operational by 2028.

“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,” he said.

The airline currently serves 35 domestic and 26 international destinations across Asia, Australia, and the Middle East.