President Ferdinand Marcos Jr. has welcomed budget carrier Cebu Pacific’s investment plan of purchasing 152 planes from Airbus, marking the largest purchase of aircraft in the aviation history of the Philippines.
The deal is a “very good sign” for the Philippine economy, the President told Cebu Pacific officials during their courtesy call in Malacañang.
“It gives us great deal of encouragement that if we get it right, we can actually get something done and make the transformation of our economy. Make it happen,” Marcos said.
The Gokongwei-led carrier said in a statement that it would order 102 A321neo and 50 A320neo family purchase rights from Airbus worth US$24 billion or P1.4 trillion.
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The expansion plan also marks the company’s confidence in the country’s economy, Chief Executive Officer (CEO) Michael Szucs said.
“This is an enormously a bold step. We wouldn’t be doing it without having confidence in the direction the country is going,” Szucs told Marcos.
The CEO added that the investment plan is a sign of Cebu Pacific’s continued support for the growth of the country’s economy. Once the agreement is finalized, it will mark a significant achievement for domestic airlines, he added.
The plan is set to be finalized in the third quarter of the year, Cebu Pacific said.
Cebu Pacific bagged the Best Airline at the Routes Asia 2024 Awards in February for its contributions to airport and destination marketing in the Asia Pacific region, through the resumption of its Clark hub operations and launch of 15 domestic and international destinations in April 2023.
Szucs mentioned that Cebu Pacific led the domestic airline market with a 54 percent share, surpassing Philippine Airlines and AirAsia. He also emphasized that Cebu Pacific achieved a revenue of P25.3 billion in the first quarter of 2024, with total assets amounting to approximately P200 billion.
