In a move hailed by President Ferdinand R. Marcos Jr. as a “very good sign” for the Philippine economy, Cebu Pacific (CEB) announced the largest aircraft order in Philippine aviation history.
President Marcos received CEB officials at Malacañang on Tuesday, July 2, where they discussed the airline’s multi-billion dollar plan to acquire new aircraft from Airbus. The President expressed his encouragement, stating, “It gives us great confidence that with the right approach, we can achieve economic transformation. Make it happen!”
The Philippine’s leading carrier, has signed a binding Memorandum of Understanding (MOU) with Airbus for the purchase of up to 152 A321neo aircraft for USD $24 billion (PHP 1.4 trillion) based on list prices, the largest aircraft order in Philippine aviation history.
This bold move, according to CEB Chief Executive Officer Michael Szucs, reflects the company’s strong faith in the Philippines’ economic future. “This is a tremendously bold step,” he told President Marcos. “We wouldn’t be doing it without unwavering confidence in the direction the country is headed.”
Upon finalization, the deal will mark a significant milestone for the Philippine airline industry and solidify CEB’s commitment to supporting the nation’s growth trajectory. Szucs emphasized that the expansion provides CEB with the flexibility to adapt its fleet growth to market conditions, allowing them to switch between A321neo and A320neo models as needed.
The chosen engine for these aircraft is the Pratt & Whitney GTF. The MOU covers firm orders for up to 102 A321neo aircraft, with purchase rights for an additional 50 A320neo Family aircraft.
CEB officials, led by Lance Gokongwei, president and CEO of JG Summit Holdings, Inc. (CEB’s parent company), briefed President Marcos on their investment plans and the importance of government support in maintaining a competitive Philippine aviation industry.
Szucs highlighted CEB’s leadership position in the domestic airline market, boasting a 54% market share compared to Philippine Airlines (29%) and AirAsia (17%). The company reported a first-quarter 2024 revenue of PhP25.3 billion, with total assets reaching PhP200 billion.
CEB’s achievements were further recognized in February 2024 when they received the Best Airline award at the Routes Asia 2024 Awards. This prestigious honor acknowledges their contributions to airport and destination marketing in the Asia Pacific region, particularly through the resumption of Clark hub operations and the launch of 15 new domestic and international destinations in April 2023.
