Cebu Pacific (CEB) announced that it has signed a memorandum of understanding (MoU) with Airbus and Pratt & Whitney for what is now seen as the largest aircraft order in the history of Philippine aviation.

The MOU covers firm orders for up to 102 A321neo, plus 50 A320neo Family purchase rights. CEB also selected Pratt & Whitney GTF™ engines to power the future aircraft.    

The cost of the purchase is an estimated US$24 billion based on list prices.

The purchase agreement to finalize this transaction is expected to be completed in the third quarter of the year.

Flexibility in the air

CEB CEO Michael Szucs explained that the order is designed to give the airline the flexibility to choose between the A321neo and A320neo aircraft as needed. By doing so, CEB adapts faster to any market changes.

Szucs added: “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 executive vice-president for commercial aircraft sales Benoît de Saint-Exupéry said of the purchase: “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’s president of commercial engines Rick Deurloo stated that CEB’s latest order stands as proof of the growing opportunities for aviation in the Philippines and the Asia Pacific in general.

Deurloo said: “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.”