BUDGET carrier Cebu Pacific is looking to purchase up to 152 A321neo aircraft from European manufacturer Airbus SE in a deal worth $24 billion (P1.4 trillion), which the airline described as the largest order in Philippine aviation history.

The binding memorandum of understanding signed with Airbus covers firm orders for up to 102 A321neos and purchase rights to 50 aircraft in the A320neo line.

A purchase agreement is expected to be finalized in the third quarter of this year.

A spokesman said that deliveries of the firm orders would start no later than 2029.

For the new planes Cebu Pacific again chose GTF engines made by RTX subsidiary Pratt & Whitney, a type currently in use by the airline and which is subject to an inspection drive to check for potentially flawed components that have forced carriers, including Cebu Pacific, to temporarily ground planes.

"This order is designed to provide Cebu Pacific with maximum flexibility to adapt fleet growth to market conditions, as well as the ability to switch between the A321neo and A320neo aircraft," Cebu Pacific CEO Michael Szucs told the stock exchange.

"When finalized, the deal will be a significant milestone for the local airline industry and a testament to Cebu Pacific's unwavering commitment to support the Philippine growth story," he added.

President Ferdinand Marcos Jr. welcomed the news, telling Cebu Pacific officials on Tuesday that the plan "is a very good sign" for the Philippine economy.

"It gives us [a] great deal of encouragement that if we get it right, we can actually get something done and make the transformation of our economy. Make it happen," Marcos said in a statement issued by the Presidential Communications Office (PCO).

Cebu Pacific officials led by Lance Gokongwei, president and CEO of JG Summit Holdings Inc., which owns Cebu Pacific, informed Marcos of the airline's investment plans and government support to keep the local aviation industry competitive.

"This is an enormously bold step. We wouldn't be doing it without having confidence in the direction the country is going," the PCO quoted Szucs as having told Marcos.

The airline was said to be the leading domestic airline with a 54-percent market share and that first quarter revenues had hit P25.3 billion.

Cebu Pacific approached both Airbus and American rival Boeing Co. last year for an order of several narrow-body aircraft and said that it would be seeking the best offer in a winner-takes-all deal.

Prior to Tuesday's announcement, reports said that Airbus was closing in on securing the deal.

Cebu Pacific operates a fleet of 64 Airbus and 14 ATR aircraft, which is expected to increase to 92 by end-2024.

Cebu Air Inc., the operator of Cebu Pacific, saw its shares go up by 10 centavos, or 0.37 percent to P27.20 apiece amid a 0.62-percent drop for the benchmark Philippine Stock Exchange index.