Cebu Pacific said Tuesday said it is eyeing a wet lease agreement with a charter company of Bulgaria Air amid the rising number of grounded aircraft because of engine issues.
The airline unit of the Gokongwei Group said it is seriously considering a short-term wet lease to mitigate the impact of aircraft engine issues on its passengers.
A wet lease is an arrangement where one airline provides an aircraft, complete crew, maintenance and insurance to another airline.
Cebu Pacific said it expected to receive before the end of 2023 proposals from aircraft manufacturers.
It earlier issued request for proposals (RFP) to both Airbus and Boeing for 100 to 150 narrowbody jets, which represent the largest ever commitment of any airline into the Philippine aviation industry.
“We’ve taken all these initiatives to uphold our commitment to delivering affordable, safe, and dependable flights,” Cebu Pacific chief executive Michael Szucs said.
Cebu Pacific will begin inspections from January 2024 across its A320/321 NEO aircraft that are powered by Pratt and Whitney (P&W) engines. This is not a safety issue, and inspection and replacement procedures are set well in advance to ensure the continued operation of the P&W fleet, it said.
Cebu Pacific said it was expecting to have ten aircraft grounded in January, with the number rising through 2024 to 20.
Despite the engine issues, Cebu Pacific is confident it would continue its financial and capacity growth in 2024, with system wide network forecast to exceed 100 percent of pre-pandemic capacity in the fourth quarter of this year.
The airline flew four million domestic passengers in the third quarter, up 5 percent year-on-year and already above pre pandemic levels.
The airline grew its international operations steeply, as it flew over 1.3 million passengers for the quarter, a 228 percent increase year-on-year.
“Going into the fourth quarter, we remain optimistic as we saw our domestic market share at 55% in October despite challenges on fleet availability. Aside from that, we expect that by the end of the year, our systemwide network will be at 103 percent of pre-pandemic levels; domestic will continue to exceed pre pandemic levels, while international is seen to be at about 93 percent,” Szucs said.
“By year end, we expect to fly to 60 destinations, through over 100 routes and at least 2,700 weekly flights,” he said.
Cebu Pacific expects its seat capacity to grow between 5 percent and 8 percent in 2024 from 2023 levels despite the grounding of a number of aircraft next year due mainly to early inspection of Pratt and Whitney engines that power the A320/321 NEO fleet.