Cebu Pacific may sell its A320ceo fleet
Aviation Updates Philippines – After Cebu Pacific reviewed its long-term fleet plan and negotiations with suppliers, the airline now seeks to sell and leaseback its entire A320ceo fleet, according to a report from FlightGlobal.
Per reports, the low-cost carrier is leaning towards the lease-back of 17 Airbus A320ceo aircraft, its entire owned fleet. Initially, Cebu Pacific planned to drop at least 14 aircraft; however, the dwindling air passenger volume and the currently filled order book for the airline may have prompted the sale.
Simple Flying said the formal request for proposal (RFP) has been in the market for several weeks. Cebu Pacific is already talking to potential lessors and lenders, knowing how much they would get in a deal.
“It’s a liquidity exercise, yes – but it’s also a residual value exercise because they have the [A320neo] delivery stream,” a source tells FlightGlobal. The older A320s were destined to be replaced with the newer A320 and A321neos even before.
This strategic move of Cebu Pacific comes to no surprise. Based on our latest information, the low-cost carrier expects to receive three ATRs until 2022, 37 Airbus A321neo (including the XLR) until 2026, five Airbus A320neo starting 2024, and 16 Airbus A330neo starting 2022.
Recently, AUP reported about the deferral of the airline’s order for 16 Airbus A330neo aircraft to 2022. Originally scheduled to arrive in 2021, the delivery of these new aircraft will come in gradually as the airline recovers from COVID-19.
Cebu Pacific, as it struggles with today’s crisis, seeks to preserve cash as much as possible. The exit of the Airbus A320 from the airline’s young fleet will enable Cebu Pacific to fully benefit from the arrival of its next-generation aircraft.
At the time of this writing, the airline is not resuming its domestic and international flights yet.
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| Photo from Joshua Cruz |
Simple Flying said the formal request for proposal (RFP) has been in the market for several weeks. Cebu Pacific is already talking to potential lessors and lenders, knowing how much they would get in a deal.
“It’s a liquidity exercise, yes – but it’s also a residual value exercise because they have the [A320neo] delivery stream,” a source tells FlightGlobal. The older A320s were destined to be replaced with the newer A320 and A321neos even before.
This strategic move of Cebu Pacific comes to no surprise. Based on our latest information, the low-cost carrier expects to receive three ATRs until 2022, 37 Airbus A321neo (including the XLR) until 2026, five Airbus A320neo starting 2024, and 16 Airbus A330neo starting 2022.
Recently, AUP reported about the deferral of the airline’s order for 16 Airbus A330neo aircraft to 2022. Originally scheduled to arrive in 2021, the delivery of these new aircraft will come in gradually as the airline recovers from COVID-19.
Cebu Pacific, as it struggles with today’s crisis, seeks to preserve cash as much as possible. The exit of the Airbus A320 from the airline’s young fleet will enable Cebu Pacific to fully benefit from the arrival of its next-generation aircraft.
At the time of this writing, the airline is not resuming its domestic and international flights yet.
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