CEB inks forward sale agreement with Allegiant
The Philippines’ leading carrier, Cebu Pacific (PSE:CEB) signed a forward sale agreement with a subsidiary of Allegiant Travel Company (NASDAQ: ALGT), covering Cebu Pacific’s sale of six Airbus A319 aircraft. Allegiant is the parent company of Las Vegas-based low-cost airline, Allegiant Air. Delivery of aircraft to Allegiant is scheduled this year until 2016.
“This agreement is in line with CEB’s efforts to continuously improve operational efficiency by replacing and upgrading our fleet with the larger, more fuel efficient, and longer range A321neo aircraft,” said Lance Gokongwei, CEB President and CEO.
The A321neo is the largest model in the A320neo series, which incorporates new engines and large wing tip devices called sharklets. The advances will deliver fuel savings of 20 percent and additional payload or range capability. The fuel savings translate into some 5,000 tonnes less CO2 per aircraft per year. In addition, the aircraft will provide a double-digit reduction in NOx emissions and reduced engine noise.
CEB currently operates a fleet of 54 aircraft comprised of 10 Airbus A319, 31 Airbus A320, 5 Airbus A330 and 8 ATR 72-500 aircraft. Between 2015 and 2021, Cebu Pacific will take delivery of 7 more brand-new Airbus A320, 1 Airbus A330, and 30 Airbus A321neo aircraft.
CEB’s Airbus A321neo aircraft will be equipped with the Pratt and Whitney PurePower Geared Turbofan™ engine. The aircraft has a flying radius of over 6 hours and can be configured to have up to 240 seats. This will enable CEB to access new markets in the Indian subcontinent and Australia, including Perth, Brisbane and Adelaide.
About Cebu Air Inc. (PSE: CEB)
Cebu Air Inc. is the largest carrier in the Philippine air transportation industry, offering its low-cost services to more destinations and routes with higher flight frequency within the Philippines than any other airline.
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