Category: Deals & Investment

Philippines: Cebu Pacific To Acquire Five Airbus A320neo

Listed Philippine carrier Cebu Pacific continues to ramp-up its fleet with the confirmed addition of five Airbus A320neo (new engine option) aircraft.

Deliveries of the aircraft will commence in the first half of 2019 and will be completed within the same year.

The five additional A320neo aircraft is on top of its order of two more A321ceo, 32 Airbus A321neo, and six ATR 72-600 aircraft, which are scheduled for delivery between 2018 and 2022. The additional aircraft will be used to support the carrier’s expansion plans.

“We see expansion opportunities in new markets, as well as pent-up demand in areas where we currently operate. The introduction of the first new generation, fuel-efficient A320neo aircraft to the Philippine market will help us to further strengthen our position in the Philippines and allow us to further pursue expansion of our international route network. From this year until 2022, we are adding an average of nine new aircraft per year to our fleet,” said Alexander Lao, Vice President for Commercial Planning of Cebu Pacific.

“With higher seat capacity and much greater fuel efficiency, the A320neo will enable us to fly further and more economically. It’s the perfect addition to our fleet, allowing us to offer even more compelling fares to more passengers.”

The single-aisle A320neo aircraft for Cebu Pacific will be equipped with the Pratt & Whitney PurePower PW1100G-JM geared turbofan, the aircraft has a maximum range of 6,300 kilometers but burns up to 20% less fuel.

Cebu Pacific will acquire the five aircraft via an Operating Lease Agreement signed with Avolon Aerospace Leasing Limited, one of the largest aircraft leasing companies in the world.

This is second lease agreement between Cebu Pacific and the Dublin-based Avolon following the placement of three Airbus A330-300 aircraft with the carrier.

Also Read: Philippines: Pilmico Acquires Singapore’s Gold Coin for $334m

Cebu Pacific has one of the youngest fleets in the world, with a total of 67 aircraft with an average age of 4.8 years.

The CEB fleet is comprised of 36 Airbus A320, five Airbus A321CEO (Current Engine Option), and eight Airbus A330; as well as a fleet of eight ATR 72-500 and ten ATR 72-600 aircraft, operated by subsidiary Cebgo.

Singapore: Keppel Offshore & Marine Secures $51m Contract

Keppel Offshore & Marine Ltd (Keppel O&M), a wholly-owned company of Keppel Corporation Ltd, has secured two contracts with a combined value of about S$70 million ($51 million) in Brazil and Singapore.

In disclosure to the Singapore Exchange, Keppel O&M said the two contracts were secured through its wholly-owned subsidiaries.

In Brazil, Keppel FELS Brasil has been engaged by its long-standing customer, MODEC Offshore Production Systems (Singapore), part of the MODEC Inc group, to undertake the topside module fabrication and integration of the FPSO Carioca MV30, a floating production storage and offloading (FPSO) vessel.

This is the sixth FPSO collaboration between Keppel FELS Brasil and MODEC.

In Singapore, Keppel Shipyard has been entrusted with the conversion of a LNG Carrier to a floating storage and re-gasification unit (FSRU) by a leading globa operator of oil and gas production vessels.

“Keppel O&M has a strong track record in production, storage, gasification or liquefaction vessels, having successfully delivered more than 130 of such units over the years,” said Chris Ong, CEO of Keppel O&M.

BrasFELS shipyard, Keppel FELS Brasil’s facility in Angra dos Reis, Rio de Janeiro, Brazil, will commence the fabrication of the modules for the FPSO in Q4 2018.

When completed, the FPSO Carioca MV30 will have the capacity to process 180,000 barrels of crude oil per day and 212 million cubic meters of gas per day. The unit’s storage capacity is 1.4 million barrels of crude oil.

The FPSO will be deploye4d at the Sepia field, which is located in the pre-salt region in the Santos Basin, some 250 kilometers off the coast of Rio de Janeiro, Brazil.

Also Read:
Singapore’s Radiflow Bags $18M from ST Engineering
Hong Kong: Australia’s CTM Acquires HK-based Lotus Travel Group

Keppel Shipyard has previously delivered three FSRUs, including the world’s first FSRU conversion. With the increase in demand for LNG in power generation, FSRUs are a fast, flexible, cost-effective, safe and environmentally-friendly storage and regasification solution that is well suited for deployment in remote areas with smaller energy requirements.

The world’s first converted FLNG vessel, Hilli Episeyo, has achieved final acceptance and commenced commercial operations for Perenco in Cameroon. This was accomplished within four years of the contract award to Keppel Shipyard.