Cebu Pacific signs MOU for P1.4T of new Airbus planes
Cebu Pacific [CEB 27.20, up 0.4%; 91% avgVol] [link], the Gokongwei Family’s budget airline, announced that it has signed a memorandum of understanding with Airbus to purchase up to 152 A321neo planes for $24 billion (~P1.4 trillion). The order breakdown includes 102 “firm” purchases, plus 50 “A320neo Family purchase rights”, which CEB said will give the airline “maximum flexibility to adapt fleet growth to market conditions, with the ability to switch between A321neo and A320neo” plane configurations. CEB expects to finalize the transaction in Q3 of this year. According to CEB, this is the largest aircraft order in Philippine history.
