Cebu Pacific, the Philippines’ leading low-cost carrier, is in negotiations with aviation giants Boeing and Airbus for an unprecedented 150-plane order valued at approximately ₱1.0 trillion ($18 billion). This potential deal, if realized, would mark the largest single-plane order in the history of Philippine aviation.
Cebu Pacific’s President and Chief Commercial Officer, Alexander Lao, confirmed the ongoing talks, stating, “The process is still ongoing. We hope to complete the process within the first half of the year.” This ambitious move comes as the airline aims to overcome challenges posed by critical worldwide shortages in the market for new planes, used planes, and plane parts.
The airline’s struggle to recover from the pandemic has led to leasing arrangements with other carriers, such as the “damp-lease” agreement with Bulgaria Air to service specific routes in the first half of this year. Despite the potential order, Cebu Pacific may not immediately benefit from the new planes, facing a waiting period until delivery.
In response to media reports, Cebu Air, Inc. released a clarification statement on the Securities and Exchange Commission (SEC) website, addressing the news article that mentioned discussions with Airbus and Boeing. The statement affirmed, “As of today, the Company confirms that this particular process is still in progress.”
Cebu Pacific’s Chief Finance Officer, Mark Julius Cezar, indicated that the airline plans to allocate ₱50 billion for capital expenditures this year, with a significant portion earmarked for the plane purchase. Cezar also mentioned the possibility of covering the pre-delivery cost of the 150 aircraft from the airline’s cash flow while considering borrowing from local and foreign banks to settle the balance.
