Cebu Air Inc., the operator of budget carrier, Cebu Pacific, is acquiring two Airbus A330 worth $512.8 million for the expansion of its long-haul operations.
The airline company owned by industrialist John Gokongwei said it signed a purchase agreement with Airbus SAS for the order of two A330-300 aircraft.
The two A330 were valued at $512.8 million based on Airbus list prices as of January this year.
The two A330 aircraft are expected to be delivered in December this year and May 2017.
Cebu Pacific's long-haul destinations include Dubai, Sydney, Kuwait, Riyadh and Doha, Qatar.
Long-haul business contributes about 12 percent to the total revenue of Cebu Pacific.
Cebu Air recently acquired 26 turboprop aircraft valued at $673 million for the expansion of its inter-island services.
The airline placed orders for 16 ATR 72-600, with options to acquire another 10 ATR 72-600 from ATR, the European turboprop aircraft manufacturer, for $673 million, based on current list prices.
The transaction will double Cebu Pacific's turboprop fleet size.
Cebu Pacific currently operates a fleet of eight ATR 72-500 aircraft, which will be retired as the new aircraft enter the service.
The entry into service of the new ATR 72-600 will provide Cebu Pacific with new generation aircraft to meet the growing demand in the Philippines for inter-island services.
It will also allow Cebu Pacific to expand its operations on main and other airports around the country, contributing to the development of regional transport, tourism and local economy.
The airline recently signed a deal with Allegiant Travel Company to sell its four Airbus 319 aircraft.
Cebu Pacific operates a fleet of 55 aircraft comprising of 10 Airbus A319, 31 Airbus A320, 6 Airbus A330 and 8 ATR-72 500 aircraft.
Cebu Pacific expects to take delivery of seven more brand-new Airbus A320 and 30 Airbus A321neo aircraft between 2015 and 2021.
Cebu Air earlier reported a net income of P4.04 billion in the January-to-March period, up 81 percent from P2.23 billion year-on-year.
The airline's revenues amounted to P16.11 billion, up 13 percent from P14.20 billon on year.
Source: The Standard