Cebu Pacific Air said Wednesday it ordered an additional seven Airbus A321 current engine option aircraft for $812 million as a part of its domestic and regional expansion.
The acquisition of A321CEO aircraft, which is set to be delivered from March 2018, is on top of the existing oder for 32 Airbus A321 NEO aircraft.
The airline unit of the Gokongwei group said the new aircraft would meet the airline’s increased capacity requirements pending the start of delivery of 32 A321 NEO aircraft, which would begin in the fourth quarter of 2018.
The A321 NEO aircraft was scheduled for delivery beginning September until 2021, but it was pushed back for delivery in the fourth quarter of 2018 until 2022.
The airline chose to defer the A321 NEO deliveries due to delays with the Pratt & Whitney engines selected to power the aircraft.
“We have decided to take a conservative approach to the introduction of the A321 NEO into our operations. We remain confident that Pratt & Whitney will address all issues on the GTF [geared turbo fan) engine,” Cebu Pacific chief finance officer Andrew Huang said.
“There is, however, the need to increase our current capacity to meet growing domestic and regional network demand, thus the A321CEO order,” he said.
Cebu Pacific president and chief executive Lance Gokongwei said despite the delays in the delivery of A321 NEO, the A321 CEO aircraft would enable the airline to increase capacity on popular routes, while at the same time benefiting from the lowest operating costs in this size category.
“This will mean more low fares for more customers flying across our domestic and regional network,” he said.
John Leahy, Airbus chief operating officer for customers, said the company was pleased to sign the additional order with one of the most successful airlines in the Asian region.
“With the A321, Cebu Pacific will be able to respond to growing demand with the highest levels of efficiency. Carrying more passengers further, and at lower cost, the A321 is the perfect solution to meet the requirements of airlines worldwide in the middle of the market segment,” said Leahy.
Cebu Pacific recently took delivery of two brand-new aircraft: an Airbus A330 and an ATR 72-600, to bring its current fleet to 61.
The airline fleet is comprised of four Airbus A319, 36 Airbus A320, eight Airbus A330, eight ATR 72-500, and five ATR 72-600 aircraft.
Cebu Pacific flies to 37 domestic and 26 international destinations, operating over 100 routes spanning across Asia, Australia, the Middle East and the US.