Cebu Pacific the Philippines’ leading carrier, is set to issue Request for Proposals (RFP) to both Airbus and Boeing for 100 to 150 narrowbody jets, representing the largest-ever commitment of any airline in the Philippine’s aviation industry.
An order of 100 aircraft would mean over US$12 billion, based on typical manufacturer catalogue prices.
The airline said that representatives of Boeing and Airbus have visited the CEB offices in Manila in recent weeks as part of the early stages of the RFP and they have until the end of the year to submit proposals.
Cebu Pacific sees huge market growth opportunities within the Philippines and the region in the coming years.
“We are very optimistic about the Philippines’ economic prospects given the plans to privatize NAIA, the development of the Bulacan airport, and further enhancements of regional airports,” said Cebu Pacific chief executive officer Michael Szucs.
“Southeast Asia is the fastest-growing region in the world, forecasted to be for the next 20-30 years, and the Philippines is very much at the forefront of that. So, to service the Filipino market over the next 20 years, Philippine carriers will need to quadruple in size to cater to growing demand.”
The increased narrowbody fleet will strengthen CEB’s position in regional markets in Southeast Asia, China, and Japan and open network opportunities beyond its existing geographical footprint.
“The Philippines has great potential on its own with consistently high economic growth aligned with a large and young population. But let’s also look at the Philippines within the Asian region. Within four hours of flying time from Manila, there are 2 billion people in the fastest-growing region in the world,” Szucs said.
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Currently, CEB has a 73 aircraft fleet and these aircraft orders would more than double the fleet by 2035. CEB has a diversified fleet mix enabling the widest network coverage in the Philippines. It has six Airbus 330, 32 Airbus 320, 19 Airbus 321, and 16 ATR turboprop aircraft.
CEB will have 76 aircraft by the end of this year, further growing to 91 by the end of 2024. The airline is also seeking additional capacity to further increase its fleet further through 2024.
CEB currently operates 102 routes with an average of 2,900 flights weekly. It officially has the most extensive domestic network in the Philippines, with 35 local destinations and 25 international destinations, spanning across Asia, Australia, and the Middle East.
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