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Cebu Pacific, Airbus and Pratt & Whitney on July 22 celebrated the signing of an MOU inked early in the month
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The MOU covers firm orders for 102 A321neo plus 50 A320neo aircraft
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The purchase agreement to finalize the transaction is expected to be completed in the third quarter of the year
Cebu Pacific, Airbus and Pratt & Whitney (P&W) on July 22 celebrated the signing of a memorandum of understanding early in the month that involves the purchase of up to 152 A321neo aircraft for $24 billion (P1.4 trillion), the largest aircraft order in Philippine aviation history.
The MOU covers firm orders for up to 102 A321neo aircraft plus 50 A320neo family purchase rights. Cebu Pacific selected P&W GTF engines to power their ordered aircraft.
The MOU signing came after Cebu Pacific last year said it was reviewing proposals from Airbus and Boeing for 100 to 150 narrowbody jets.
“The order is designed to give Cebu Pacific the flexibility to choose between the A321neo and A320neo aircraft as needed, helping us adapt to market changes,” Cebu Pacific chief executive officer Michael Szucs said in a statement.
“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,” he added.
For his part, Airbus executive vice president for sales of commercial aircraft Benoît de Saint-Exupéry, said: “We thank Cebu Pacific for its ongoing confidence in Airbus and its products. 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.”
P&W expressed gratitude for Cebu Pacific’s continued confidence in the GTF engine, which the airline initially selected in 2012.
“Our GTF engine will power this growth while delivering industry-leading fuel efficiency and sustainability benefits for single-aisle aircraft,” P&W president of commercial engines Rick Deurloo said.
The purchase agreement to finalize the transaction is expected to be completed in the third quarter of the year.
