Cebu Pacific Airlines, the Philippines low-budget carrier had signed a Memorandum of Agreement to buy 37 new airbus jets worth $3.8 Billion according to the press released announced yesterday, Thursday by the company’s President and CEO Lance Gokongwei.
The purchase was the single biggest order by a firm with 30 units of Airbus A321 NEO (New Engine Option) and 7 A320 aircraft from the French company Airbus.
Cebu Pacific Airlines CEO Lance Gokongwei was quoted as saying “The aircraft will reduce our unit cost per seat” John Gokongwei’s son said. He adds further that “The addition of more A320s and the A321neo allows us to expand further in the Asia-Pacific region, and continue offering our trademark low fares.” said Lance Gokongwei.
After the acquisition of the new ordered aircraft, Cebu Pacific will expand its coverage reaching even Australia, India and Northern Japan. It will also double the airline’s fleet of 32 aircrafts.
The company will have an estimated savings of about 15% in fuel costs upon the arrival of the A321 New Engine Option model. Fuel costs was one of the primary concerns with regards to the acquisition of the aircrafts.
Cebu Pacific Air which was operated by Cebu Air Incorporated was the Philippines’ largest domestic low-cost air carrier. The company which was a subsidiary of JG Summit Holdings owned by one of the Philippine’s richest family the Gokongwei’s.
International flight rights was granted by the Philippine government to Cebu Pacific on the year 200o which saw its rapid expansion when flights to Singapore, Malaysia, Indonesia, Thailand, Guam South Korea and Hongkong had commenced.
Due to rising fuel costs and high airline fares, travelers most often opted for a low-budget air carrier which was a good indication that air travel was indeed having a shift in terms of customers.
The ordered placed by Cebu Pacific will be expected to be delivered this coming 2015. It will boosts Cebu Pacific Fleet of 24 Airbus A319s and A320s, and eight ATR 72-500 turboprops. With competitions from other budget airlines in Asia, the moved by Cebu Pacific will certainly put the Philippines in low-budget carrier providers map.
