Cebu Pacific’s short term and long term growth plans – part one: fleet challenges and new orders

Cebu Pacific is not letting the grounding of some of its Airbus narrowbodies prevent it from increasing capacity, while the airline is also looking to negotiate a major order to support its ambitious long term growth strategy.

It is one of many airlines affected by the Pratt & Whitney engine issues and the need for lengthy maintenance visits. The problem is set to become worse later this year, as the number of aircraft grounded is forecast to increase.

However, the Philippine low-cost carrier is still succeeding in growing its capacity by a healthy margin by negotiating for additional leased aircraft and taking delivery of more new narrowbodies and widebodies.

The airline is also revealing further details about its planned order for about 100 narrowbody aircraft, which will help it take advantage of the massive potential it foresees for more demand growth in the Philippines.

Part one of this analysis looks at how aircraft shortages have affected Cebu Pacific's growth plans, and how it has worked around this issue; it also examines the airline's approach to its largest-ever aircraft order.