Cebu Pacific said Monday it signed a purchase agreement with Airbus for the acquisition of 16 A330 long-range aircraft for $4.8 billion.
The 16 A330neo aircraft are scheduled for delivery between 2021 and 2024. The order accelerates the carrier’s plan to boost capacity while shifting to more fuel-efficient and eco-friendly aircraft.
Cebu Pacific said it would have an all-next generation fleet of Airbus jets by 2024.
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 which also includes 15 A320neo family aircraft.
The 16 A330neo aircraft will be fitted with up to 460 seats, with 5 percent more capacity than the current A330ceo aircraft in the Cebu Pacific fleet.
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 A330neo is integral to our fleet modernization program. With this purchase, we aim to reduce our fuel emission and build a more sustainable operation,” said Cebu Pacific president and chief executive Lance Gokongwei.
“This will also give us the lowest cost per seat, at the same time enabling CEB to increase seat capacity and maximize valuable airport slots in Manila and other Asian megacities,” Gokongwei said.
Airbus chief commercial officer Christian Scherer said Cebu Pacific is a pace-setter and surely one of the most respected and well-managed airlines in the low-cost sector.
“This new order is another important endorsement for the value-based proposition that the A330neo brings to highly competitive markets. The increased capacity version of the aircraft developed for Cebu Pacific will help achieve even greater efficiencies for high density regional and long-range routes,” Scherer said.
The A330neos will replace Cebu Pacific’s current A330ceos which will be retired as the new aircraft is delivered.
The A330neo has an extended range capability of up to 15,000 kilometers while reducing fuel consumption by as much as 25 percent versus older-generation competing aircraft.
Cebu Pacific accepted delivery of eight brand-new aircraft”•three Airbus A321neo and four A320neo; as well as an ATR 72-600 this year.
The airline operates a fleet of 74 aircraft including 31 Airbus A320, eight A330, seven ATR 72-500, 13 ATR 72-600 and an ATR Cargo Freighter.
The ATR aircraft is used by subsidiary Cebgo to service inter-island flights in the Philippines where jet operations are not possible.
Cebu Pacific is expecting delivery of two more Airbus A321neo aircraft by end-2019.