{"id":329765,"date":"2024-10-04T00:53:23","date_gmt":"2024-10-03T16:53:23","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329765"},"modified":"2024-10-04T00:53:25","modified_gmt":"2024-10-03T16:53:25","slug":"trade-the-news-ceb-locks-in-record-p1-4-trillion-airbus-plane-order","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-ceb-locks-in-record-p1-4-trillion-airbus-plane-order\/","title":{"rendered":"Trade the News: CEB locks in record P1.4-trillion Airbus plane order"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>POSITIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>Cebu Air Inc. (Cebu Pacific)<\/td><\/tr>
Stock Code<\/strong><\/td>CEB<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 54.36<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Low-cost carrier Cebu Pacific (CEB) will purchase as many as 152 aircraft from aviation giant Airbus for $24 billion, or roughly P1.4 trillion, to mark the largest plane order in Philippine history.<\/p>\n\n\n\n

Cebu Pacific yesterday signed a binding memorandum of understanding with Airbus, placing an order for 152 narrow-body planes in the make of A321neos for $24 billion, based on list prices.<\/p>\n\n\n\n

The memorandum signed with Airbus covers firm orders for 102 A321neos, including 50 purchase rights, reinforcing the strength of Cebu Pacific\u2019s fleet for future demand.<\/p>\n\n\n\n

Likewise, Cebu Pacific selected aviation supplier Pratt & Whitney to provide the jet engines for the new aircraft to be delivered by Airbus. The airline owned by the Gokongweis chose Pratt & Whitney as its engine supplier despite production issues it faced with the company.<\/p>\n\n\n\n

Cebu Pacific CEO Michael Szucs said the airline chose to fly with Airbus in the long run given the flexibility the supplier can provide. Currently, Cebu Pacific manages a fleet made up of Airbus aircraft, with the exception of a few turboprops from ATR.<\/p>\n\n\n\n

\u201cThe order is designed to provide Cebu Pacific with maximum flexibility to adapt fleet growth to market conditions, with the ability to switch between the A321neo and A320neo,\u201d Szucs said.<\/p>\n\n\n\n

\u201cWhen finalized, the deal will be a significant milestone for the local airline industry and will be a testament to Cebu Pacific\u2019s unwavering commitment to support the Philippines\u2019 growth story,\u201d he added.<\/p>\n\n\n\n

Cebu Pacific will negotiate with Airbus over the next few weeks to finalize the transaction, targeting to firm up a purchase agreement within the third quarter.<\/p>\n\n\n\n

Prior to reaching a decision, Cebu Pacific was also considering buying from Boeing even though the aircraft maker known for the 777s is facing a safety crisis in the US. Last January, a Boeing 737 Max flown by Alaska Airlines saw its door panel blow out in the middle of a flight.<\/p>\n\n\n\n

The model in concern, the 737 Max, competes with the A320neo family, one of the most popular aircraft owned by Philippine carriers like Cebu Pacific.<\/p>\n\n\n\n

(News Source: Philippine Star<\/a>)<\/em><\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Take advantage of the price opportunity that might arise when the news hits. Trade the news!<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1371],"tags":[],"class_list":["post-329765","post","type-post","status-publish","format-standard","hentry","category-trade-the-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/329765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=329765"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/329765\/revisions"}],"predecessor-version":[{"id":329767,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/329765\/revisions\/329767"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=329765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=329765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=329765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}