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Cebu Pacific eyes the purchase of 100 to 150 aircraft in a deal valued at $12 billion
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The budget carrier aims to buy narrow-body aircraft from either Boeing or Airbus to double its current fleet of 73 by 2035
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The two aircraft manufacturers have until year-end to send proposals to Cebu Pacific
Cebu Pacific (CEB) plans to purchase from 100 to 150 aircraft, a deal potentially worth $12 billion, the budget carrier said.
CEB aims to buy narrow-body aircraft from either Boeing or Airbus, making this potentially the largest aircraft purchase in the Philippines. Both aircraft manufacturers have until year-end to submit proposals.
The low-cost carrier intends to double its current 73 fleet of Airbus jets by 2035, capitalizing on the increased demand for air travel in Southeast Asia following the COVID-19 pandemic.
“To service the Filipino market over the next 20 years, Philippine carriers will need to quadruple in size,” CEB CEO Michael Szucs said.
Szucs attributed the growth prospects in the Philippines to “high economic growth, a young population and proximity to regional hubs.”
The $12-billion estimated purchase figure is based on “list prices,” according to the airline’s president, Alexander Lao.
Typically, airlines receive significant discounts on substantial orders, often amounting to half the listed price.
The Inquirer newspaper on Tuesday reported CEB is planning a “winner-takes-all” approach to secure the best deal from either Boeing or Airbus.
Currently, the budget carrier operates a fleet of Airbus and ATR freighter aircraft, with plans to expand to 91 aircraft by the end of 2024.
In the first half of 2023, CEB reported a net profit of P3.75 billion (US$66.1 million), a turnaround from the P9.5 billion net loss the previous year. The airline serves 35 domestic and 25 international destinations.
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