* Seven A321CEO planes valued at $812 mln based on list
* Says defers A321NEO deliveries due to engine delays
(Adds quotes from statement, context)
By Enrico Dela Cruz
MANILA, June 7 Philippine low-cost carrier Cebu
Air Inc said it has placed an order with Airbus for
seven A321CEO planes worth $812 million to meet increased
capacity needs but is delaying deliveries of 32 A321NEO planes
already ordered by about a year.
Cebu Air, also known as Cebu Pacific, said in a statement on
Wednesday the seven A321CEO aircraft are for delivery from March
2018. The A321NEO aircraft will now be delivered between the
fourth quarter of 2018 until 2022, compared to the earlier plan
of deliveries beginning September 2017 until 2021, it said.
Cebu Air said it has decided to defer the A321NEO deliveries
due to delays with the Pratt & Whitney engines selected to power
"We have decided to take a conservative approach to the
introduction of the A321NEO into our operations," Cebu Air Chief
Finance Officer Andrew Huang said in the statement. "We remain
confident that Pratt & Whitney will address all issues on the
GTF (Geared Turbo Fan) engine."
Pratt & Whitney, the aircraft-engine unit of United
Technologies Corp, did not immediately respond to an
emailed request for comment.
The $812 million value of the latest order is based on list
prices. Aircraft manufacturers typically give discounts to list
Airlines in Southeast Asia, including AirAsia and
Vietjet Aviation JSC, have placed large aircraft orders
in recent years, driven by the potential of rapid growth in the
Airbus COO John Leahy was quoted in the Cebu Air statement
as saying that the airline will be able to respond to growing
demand with the A321 purchases.
Cebu Air and its main rival Philippine Airlines are
busy expanding their fleets, especially given favorable
conditions in the domestic market amid the growth momentum for
the local economy.
Cebu Air recently took delivery of two brand-new planes, an
Airbus A330 and an ATR 72-600, bringing its fleet to 61.
Its fleet now comprises four Airbus A319, 36 Airbus A320, eight
Airbus A330, eight ATR 72-500, and five ATR 72-600 aircraft.
The carrier flies to 37 domestic and 26 international
destinations, operating over 100 routes spanning across Asia,
Australia, the Middle East and the United States.
(Reporting by Enrico dela Cruz; Editing by Muralikumar