SCHIPHOL-RIJK (dpa-AFX) - Aerospace major Airbus SE has received a $24 billion order from Philippines' budget airline operator Cebu Air Inc. for up to 152 A321neo aircraft.
In a filing with the Securities and Exchange Commission, Cebu Air, which operates as Cebu Pacific, announced that it has signed a binding Memorandum of Understanding or MOU with Airbus for the aircraft purchase.
Cebu Pacific's MOU covers firm orders for up to 102 A321neo, plus 50 A320neo Family purchase rights. The purchase agreement to finalize the deal is expected to be completed in the third quarter.
The $24 billion or 1.4 trillion Philippine peso order is termed as the largest aircraft order in Philippine aviation history.
The company has selected Pratt & Whitney GTF engines to power the future aircraft. In February this year, Pratt & Whitney, a business of aerospace and defense major, RTX Corp., had announced about an order from Cebu Pacific to provide GTF engines to power an additional 10 A321neo and five A320neo aircraft.
Cebu Pacific Chief Executive Officer Michael Szucs now said, 'The order is designed to provide Cebu Pacific with maximum flexibility to adapt fleet growth to market conditions, with the ability to switch between the A321neo and A320neo. When finalized, the deal will be a significant milestone for the local airline industry and a testament to CEB's unwavering commitment to support the Philippine growth story.'
Last week, Reuters had reported citing sources that Airbus was nearing a deal with Cebu Pacific for 70 narrow-body jets.
In May, Airbus received an order from Saudia Group, the national flag carrier of Saudi Arabia, and flyadeal, the group's low-cost carrier, for an additional 105 A320neo Family aircraft. The order comprises 12 A320neo and 93 A321neo aircraft.
In Paris, Airbus shares were trading at 131.10 euros, down 0.41%.
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