Cebu Pacific orders up to 152 Airbus planes worth $24 billion

Philippine budget carrier Cebu Pacific has placed an order for up to 152 planes from Airbus in a deal valued at $24 billion, making it the largest aircraft order in the country’s history, officials say.

Under the terms of the agreement, Cebu Pacific will buy a minimum of 70 A321neo aircraft with an option to increase the total to 102, according to a statement from the airline. It also includes purchase rights for 50 A320neo planes.

The 152 planes have a value of $24 billion at list prices, but aircraft manufacturers usually provide significant discounts. Specific details about payments have not been released.

“The order is designed to provide Cebu Pacific with maximum flexibility to adapt fleet growth to market conditions, with the ability to switch between the A321neo and A320neo,” Cebu Pacific CEO Michael Szucs said in a statement.

Szucs added: “When finalised, the deal will be a significant milestone for the local airline industry and a testament to CEB’s unwavering commitment to support the Philippine growth story.”

Airbus and Cebu Pacific expect the purchase agreement will be finalized in the third quarter of this year.

Cebu Pacific was Asia’s first low-cost airline when it was founded in 1988 and is currently the Philippines’ largest airline with a fleet of 69 planes. The airline offers flights to both domestic and international destinations.