Cebu Air Inc. said Thursday it is acquiring more aircraft from Airbus SAS for $2 billion to support domestic and international network expansion.
The airline unit of the Gokongwei Group said it signed a purchase agreement with Airbus for the order of 15 A320NEO family aircraft including up to 10 A321XLR. The order is valued at $2 billion based on list prices.
The 15-aircraft order includes up to 10 A321XLR (xtra long range) jets, the world’s longest-range single-aisle aircraft.
The purchase agreement is a part of the memorandum of understanding signed by Cebu Pacific with Airbus in June 2019 during the Paris Air Show for an order of 31 next generation aircraft.
The purchase agreement for 16 wide-body A330 NEO aircraft was already finalized in October, and the latest purchase agreement completed the remaining part of the memorandum of understanding.
Cebu Pacific earlier said it would have an all-next generation fleet of Airbus jets by 2024.
Cebu Pacific plans to utilize the aircraft on trunk routes within the Philippines, the rest of Asia and on long-haul routes to Australia and the Middle East.
The aircraft are scheduled for delivery between 2021 and 2024. Cebu Pacific expects to have an all-next generation fleet of Airbus jets by 2024.
Cebu Pacific has already accepted delivery of 10 brand-new aircraft”•five Airbus A321NEO and four A320NEO as well as an ATR 72-600.
The CEB fleet is now comprised of 75 aircraft, including seven Airbus A321CEO, 30 Airbus A320, eight A330, seven ATR 72-500, 12 ATR 72-600,and an ATR cargo rreighter.
The ATR aircraft is used by subsidiary Cebgo to service inter-island flights in the Philippines where jet operations are not possible.