Is Cebu Pacific Going for a Mega Order with Airbus?

Is Cebu Pacific Going for a Mega Order with Airbus?

It has been circulating all over the news that Cebu Pacific is nearing a deal of 100 to 150 planes with Airbus. However, both Airbus and Cebu Pacific continue to remain silent about it as negotiations are still ongoing. But I remember when this deal was first announced, I somehow forecasted that Airbus might end up as the winner here. It looks like I might be correct.

Just today, another report from CNA came out, claiming that sources familiar with the matter said that Cebu Pacific is nearing an order with Airbus, which may consist of 70 narrowbody planes, including the A321neo. Others said that the order may also include up to 50 options. If we add that, we might be seeing an order of up to 120 planes from Cebu Pacific.

During my brief conversations with Xander Lao, he explained that the huge order is in anticipation of the rise in air travel demand and the increase in capacity of Manila airports, especially when the Bulacan airport opens. Also, Cebu Pacific is looking to mount more flights from both Cebu and Clark. Additionally, Xander explained that the order will serve as both additional planes and replacements for older planes like the A320 and A321ceos. However, nothing was mentioned about whether the mega order will be with Airbus or Boeing.

Cebu Pacific Airbus

There are Clues

There were some clues, though. First, Cebu Pacific CEO Mike Szucs said in an interview that the selection process does not only cover choosing the aircraft but also choosing the engine type. This is somewhat a clue. The A320/321neo series have two engine choices, the Pratt & Whitney PW1100G GTF, and the CFMI LEAP-1A, whereas the Boeing 737 MAX only has one engine choice, the CFMI LEAP-1B. If Cebu Pacific were going for the MAX, then there would be no need to select an engine type. However, Szucs did mention that they also have to select the engine for the planes.

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Another clue: Szucs mentioned that they will only choose one manufacturer, not two. If Cebu Pacific were to go for Boeing, it would mean a lot of retraining for all the crew. Also, I am not sure if there is an MRO in the Philippines that services the MAX. I am not familiar if Lufthansa Technik Philippines and SIA Engineering in Clark service the MAX. Maybe someone can confirm this for me. 150 Boeing 737 MAX planes would definitely replace all the Airbus A320/321neo in the Cebu Pacific fleet in the long run, hence the heavy costs of retraining the crew.

Cebu Pacific Airbus

Allow me to clear out that these are my personal views on why I believe that Cebu Pacific may still end up with an Airbus mega order. While I believe Boeing is still clearly doing its best to steal the gold from Airbus, the winner was somehow clear from the beginning. Yes, Airbus might be facing issues now concerning the Pratt & Whitney problem resulting in the grounding of thousands of A320neos and A321neos worldwide, but Boeing is also facing quality issues, including the door plug issue and other manufacturing problems.

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I am still awaiting the final results of the mega order from Cebu Pacific. Will an MOU be signed and announced soon? We might be just days away from finding out. For now, my bet is on Airbus. Let us see if I am correct.

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