MANILA - Cebu Pacific Chairman Lance Gokongwei revealed that the European aerospace company Airbus offered a better deal than rival US firm Boeing. This is in connection with the budget carrier’s plan to buy 152 aircraft in what is hailed as the largest aircraft order in the Philippines worth P1.4 trillion.

Gokongwei said they decided to stay with Airbus and engine company Pratt & Whitney, both of which they have worked with for many years now. Cebu Pacific currently operates over 70 aircraft, mostly Airbus jets and with no Boeing planes.

Cebu Pacific seals 'largest deal' in PH aviation, to buy 152 Airbus planes at P1.4 trillion

“We selected, I think Airbus and Pratt & Whitney came forward with what we feel was the best offer. When we say best offer, what are we looking for— we’re looking at the lowest unit cost to operate so we can continue to offer affordable fares to the public,” Gokongwei said.

This was despite the issues hounding Pratt & Whitney engines which forced several planes worldwide, including some of Cebu Pacific to be grounded for repairs.

“Our partners at Airbus and Pratt and Whitney have worked very closely with us and are giving us choices which will enable us to support the aviation and tourism industry,” he said.

Other reasons, Gokongwei cited, are the good feedback from passengers on their current planes, as well as Airbus jets being more fuel-efficient.

“We are already a very happy operator of Airbus. Passengers’ satisfaction with the aircraft is very high and also, I guess the most sustainable and fuel-efficient aircraft there is,” he asserted.

He still thanked Boeing as well as engine companies CFM and GE for participating in the talks after the airline issued an RFP or request for proposal.

Gokongwei also said the order is a sign of their confidence in the Philippine economy, as he also hailed the improvements of many airports, the privatization of Ninoy Aquino International Airport, and the construction of the Bulacan airport.

“[The] order is premised on continuing Philippine growth. We also know our demographics, a lot of young people who want to travel and experience the world, growing middle class. Increasing attraction of the Philippines as a tourism destination being in the heart of Asia,” he said.

The order will be funded through equity or loans with Gokongwei saying he is not considering issuing bonds for now. The first aircraft under the deal is expected to arrive in 2028. However, the airline is still expected to welcome new planes this year from previous orders.