The Market Monitor Minding the Nation's Business
Listed budget airline Cebu Pacific (CEB) remains focused on expanding connectivity through the acquisition of 30 Airbus A321neos scheduled for delivery from 2016 to 2021, the company reported to the bourse.
“As we aim to expand our operations both in the Philippines and abroad, we remain invested in upgrading our fleet with fuel efficient, versatile aircraft. Between 2016 and 2021, we are anticipating the delivery of 30 Airbus A321neos, for long-range capability, and 16 ATR 72-600 turboprop planes, for better inter-island connectivity,” CEB President and CEO Lance Gokongwei said.
Cebu Pacific recently signed an agreement to sell four of its Airbus A319 to a Las Vegas budget airline firm.
“Cebu Pacific signed a forward sale agreement with a subsidiary of Allegiant Travel Co. covering Cebu Pacific’s sale of four Airbus A319 aircraft,” CEB said. “Allegiant is the parent company of Las Vegas-based low-cost airline, Allegiant Air. Delivery of the four aircraft to Allegiant is scheduled from 2017 to 2018,” it added.
CEB currently operates one of the youngest fleets in the world, with an average age of 4.82 years. Its 57-strong fleet is comprised of seven Airbus A319, 36 Airbus A320, six Airbus A330, and eight ATR 72-500 aircraft. The A321neo incorporates new engines and wing-tip devices called Sharklets, which could deliver fuel savings of 20 percent and additional payload or range capability.
The aircraft has a flying radius of over six hours and can be configured to have up to 240 seats, allowing CEB to access new markets in the Indian subcontinent and Australia.
CEB also ordered 16 ATR 72-600 turboprop aircraft, to meet increasing domestic demand for inter-island services.
The ATR planes enjoy a high reputation not only for versatility but also for their ability to operate on short runways.
These aircraft will enable CEB to expand its operations on several smaller airports in its home country, and to contribute to the development of regional transport, trade, and tourism.
Jude Bricker, Allegiant Travel Co. chief operating officer, said the agreement to purchase additional aircraft from Cebu Pacific was an important step in its long-term transition to a single fleet type. RIZA LOZADA