CEBU PACIFIC has finalized the sale of its four Airbus A319 planes to a Las Vegas-based low-cost carrier, as the local airline continues to modernize its fleet.
“Cebu Pacific signed a forward sale agreement with a subsidiary of Allegiant Travel Company,” the Gokongwei-led Cebu Pacific said in a statement on Thursday, referring to the parent firm of Allegiant Air.
The four aircraft is scheduled to be delivered to Allegiant between 2017 and 2018.
Lance Y. Gokongwei, president and chief executive officer of Cebu Pacific’s listed operator Cebu Air, Inc., said the transaction is in line with the group’s thrust to upgrade its fleet with “fuel efficient, versatile aircraft” alongside an expansion in its local and international route network.
The group currently flies to more than 90 routes on 64 destinations, spanning Asia, Australia, the Middle East, and USA.
“Between 2016 and 2021, we are anticipating the delivery of 30 Airbus A321neos, for long-range capability, and 16 ATR 72-600 turboprop planes, for better inter-island connectivity,” Mr. Gokongwei said.
Cebu Air said it operates one of the youngest fleets in the world, with an average age of 4.82 years. Its 57-strong fleet is composed of seven Airbus A319, 36 Airbus A320, six Airbus A330, and eight ATR 72-500 aircraft.
Cebu Air’s “conservative” fleet renewal program involves the delivery of 30 brand-new Airbus A321neo aircraft, the largest model in the A320neo series. The plane could deliver up to 20% fuel savings and additional carrying capacity or range capability.
The company also ordered 16 ATR 72-600 turboprop aircraft, to accommodate growing travel among Philippine islands.
For its part, Allegiant Travel Company Chief Operating Officer Jude Bricker said the deal is part of its transition to a single fleet type.
Before this, Allegiant had agreed to purchase six Airbus A319 aircraft from the Philippine low-cost carrier, with three remaining deliveries scheduled later this year.
Cebu Air has yet to respond to a request for additional information. — Daphne J. Magturo