By Cecil Morella | AFP News 
Philippine budget carrier Cebu Pacific announced Thursday it had ordered 37 new Airbus jets worth $3.8 billion in the nation's biggest-ever aircraft order so it can expand across the Asia Pacific.
Cebu Pacific chief executive Lance Gokongwei said his airline was aiming to fly to destinations further afield such as Australia, building on an aggressive strategy that has seen it become the nation's top carrier in recent years.
Gokongwei told a news conference his company had ordered 30 Airbus A321neo jets and seven A320s, to be delivered between 2015 and 2021, in what was the "largest single aircraft order ever made by a Philippine carrier".
He said the airline also had an option for 10 more A321neo jets, which can carry more people and fly hundreds of kilometres (miles) further than the A320s that currently dominate Cebu Pacific's fleet.
"These 220-seater aircraft will be a game changer for Cebu Pacific," Gokongwei said.
"We will be able to serve cities in Australia, India and northern Japan, places the A320 cannot reach."
Cebu Pacific's announcement came moments before India's GoAir said in Mumbai it had ordered 72 A320s, making it a banner day for France-based Airbus and highlighting the fast-growing muscle of Asia's low-cost aviation market.
As part of the region's low-cost boom, airlines have in recent years successfully expanded from simple short flights to medium and long-haul.
While Malaysia's AirAsia X has been the pioneer, Singapore Airlines also announced last month it planned to launch a long-haul low-cost airline.
Gokongwei said Cebu Pacific was aiming to see passenger numbers in its domestic operations grow 10-15 percent a year, with an even more ambitious target of 25-percent annual growth for its international division.
Taking to the skies only 15 years ago, Cebu Pacific passed national carrier Philippine Airlines recently to become the country's number-one airline in terms of passenger numbers.
It now flies to more than 30 destinations within the Philippines and 16 across Asia, all within a few hours' flying time from Manila.
Gokongwei said he expected Cebu Pacific to fly at least 12 million people this year, up from 10.5 million in 2010.
Cebu Pacific's fleet is currently made up of 25 A320s, which carry a maximum of 180 passengers, and eight small ATR turbo-prop aircraft.
It already has another 18 320s on order to be delivered between 2011 and 2014.
With the fresh orders announced on Thursday, Cebu Pacific's fleet size will reach 88 over the next decade.
Cebu Pacific said the new technology featured on the A321neo aircraft, which include large, wing-tip devices called sharklets, and bigger passenger capacity would allow it to cut its fuel consumption by 15 percent.
"This means Cebu Pacific will be able to offer even lower fares to our guests and be much more competitive with anyone flying less cost-efficient aircraft," Gokongwei said.
Cebu Pacific raised 23.3 billion pesos ($540 million) last year in the country's biggest initial public offering to fund expansion plans.
Gokongwei said Thursday a mixture of borrowing and internal funds would fund the new Airbus orders.
Cebu Air Inc., the carrier's corporate name, closed 2.18 percent higher to 86.85 pesos Thursday, minutes before Gokongwei announced the fleet boost plan.
Cebu Pacific chief executive Lance Gokongwei said his airline was aiming to fly to destinations further afield such as Australia, building on an aggressive strategy that has seen it become the nation's top carrier in recent years.
Gokongwei told a news conference his company had ordered 30 Airbus A321neo jets and seven A320s, to be delivered between 2015 and 2021, in what was the "largest single aircraft order ever made by a Philippine carrier".
He said the airline also had an option for 10 more A321neo jets, which can carry more people and fly hundreds of kilometres (miles) further than the A320s that currently dominate Cebu Pacific's fleet.
"These 220-seater aircraft will be a game changer for Cebu Pacific," Gokongwei said.
"We will be able to serve cities in Australia, India and northern Japan, places the A320 cannot reach."
Cebu Pacific's announcement came moments before India's GoAir said in Mumbai it had ordered 72 A320s, making it a banner day for France-based Airbus and highlighting the fast-growing muscle of Asia's low-cost aviation market.
As part of the region's low-cost boom, airlines have in recent years successfully expanded from simple short flights to medium and long-haul.
While Malaysia's AirAsia X has been the pioneer, Singapore Airlines also announced last month it planned to launch a long-haul low-cost airline.
Gokongwei said Cebu Pacific was aiming to see passenger numbers in its domestic operations grow 10-15 percent a year, with an even more ambitious target of 25-percent annual growth for its international division.
Taking to the skies only 15 years ago, Cebu Pacific passed national carrier Philippine Airlines recently to become the country's number-one airline in terms of passenger numbers.
It now flies to more than 30 destinations within the Philippines and 16 across Asia, all within a few hours' flying time from Manila.
Gokongwei said he expected Cebu Pacific to fly at least 12 million people this year, up from 10.5 million in 2010.
Cebu Pacific's fleet is currently made up of 25 A320s, which carry a maximum of 180 passengers, and eight small ATR turbo-prop aircraft.
It already has another 18 320s on order to be delivered between 2011 and 2014.
With the fresh orders announced on Thursday, Cebu Pacific's fleet size will reach 88 over the next decade.
Cebu Pacific said the new technology featured on the A321neo aircraft, which include large, wing-tip devices called sharklets, and bigger passenger capacity would allow it to cut its fuel consumption by 15 percent.
"This means Cebu Pacific will be able to offer even lower fares to our guests and be much more competitive with anyone flying less cost-efficient aircraft," Gokongwei said.
Cebu Pacific raised 23.3 billion pesos ($540 million) last year in the country's biggest initial public offering to fund expansion plans.
Gokongwei said Thursday a mixture of borrowing and internal funds would fund the new Airbus orders.
Cebu Air Inc., the carrier's corporate name, closed 2.18 percent higher to 86.85 pesos Thursday, minutes before Gokongwei announced the fleet boost plan.
