Airbus SE is reportedly nearing a significant agreement with Cebu Pacific Air for the purchase of up to 150 A320neo single-aisle jets, a move that could substantially expand the fleet of the Philippine carrier. The potential deal is expected to include around 50 optional aircraft, as discussions between the two parties progress. Sources close to the matter suggest that the agreement might be officially announced at the upcoming Farnborough Air Show next month, according to a report by Bloomberg.
The expansion reflects Cebu Pacific’s ambitious growth plans under the leadership of CEO Mike Szucs and the stewardship of tycoon Lance Gokongwei and his family’s conglomerate, JG Summit Holdings Inc. The airline, which currently operates a mixed fleet predominantly comprising Airbus models, had previously expressed interest in acquiring approximately 100 new jets with an option for an additional 50.
Despite earlier indications that Boeing Co. was also a contender for this substantial order, with Szucs noting that the American manufacturer “had a reasonable chance” of consideration, Cebu Pacific appears to be favoring Airbus. This preference comes even as the carrier navigates challenges with its existing Airbus fleet, particularly issues related to Pratt & Whitney engines on some of its aircraft.
While representatives from Cebu, Airbus, and Boeing have refrained from commenting on the ongoing negotiations, there is a cautious note from insiders that no definitive agreement has been signed yet, and the specifics, including the timing of the announcement, are still subject to change.
The potential deal underscores Airbus’s strong position in the competitive single-aisle market, despite delivery delays that have affected some clients, including Cebu Pacific. The airline has had to lease additional aircraft temporarily to mitigate the impact of these delays and maintain its operational capacity.
This development also highlights Boeing’s ongoing efforts to penetrate Airbus-dominated markets and expand its customer base for the 737 Max jet in Southeast Asia. Cebu Pacific’s decision could signal continued confidence in Airbus, despite the European manufacturer’s recent challenges.