From L-R: Benoit de Saint-Exupery, Airbus executive vice president for commercial aircraft sales, Cebu Pacific chief executive Michael Szucs, and Pratt & Whitney president for commercial engines Rick Deurloo pose during a signing ceremony in Manila on October 2, 2024. Photo by Ted ALJIBE / AFP
Manila: Philippine budget carrier Cebu Pacific signed an agreement on Wednesday to buy up to 152 Airbus planes worth $24 billion in a deal it described as the largest done in the country.
The order calls for a minimum of 70 units of A321neo aircraft that could rise to a maximum of 102, plus 50 "purchase rights" for other planes, Cebu Pacific chief executive Michael Szucs told reporters.
"If we were to exercise the full value of the full potential of this deal for 152 aircraft, it's (worth) about $24 billion," Szucs said, adding there was "plenty of time to make that decision".
The full order would be "way in excess of any previous deal that's been done in the Philippines in the past", Szucs said.
Cebu Pacific has previously said it would use Pratt & Whitney engines for the planes despite reporting problems that have forced the airline to ground at least 10 planes.
Szucs portrayed the massive fleet order as a vote of confidence for the Philippines' economic prospects, citing huge infrastructure projects including an airport being built north of the capital Manila.
That airport, which is expected to open in 2029, means the carrier has to field "an entirely new set of aircraft" there, Szucs said.
Airlines have roared back after the Covid-19 pandemic, with passenger numbers and revenues expected to hit record highs this year, according to the International Air Transport Association.
But airlines are also facing a sharp rise in costs caused by shortages of parts and labour, and challenges related to climate change.
