Philippine carrier's decision to opt for Airbus type as DC-9 replacement is blow to struggling Boeing narrowbody
Boeing's 717 programme has been dealt another setback, with Philippine carrier Cebu Pacific opting to replace its McDonnell Douglas DC-9-30s with Airbus A319s.
Industry sources say Cebu Pacific made an internal selection in June and has now committed to a deal with Airbus for 12 firm-ordered A319s powered by CFM International CFM56 engines.
It is not clear, however, whether the paperwork that has been signed with Airbus constitutes a formal order, or is still considered a tentative commitment. An announcement is expected this month, possibly at the Farnborough air show.
The sources say the A319s will be delivered from late 2005, replacing the airline's 12 DC-9-30s that operate on domestic routes. Cebu Pacific may also take a handful of A320s on an interim basis ahead of the first A319 delivery.
Cebu Pacific had been considering replacement options for its DC-9s for years, but deferred decisions several times. It needs to go ahead with an order now as it wants to dispose of its DC-9s before most of them become due for costly heavy-maintenance checks.
Its selection of the A319 represents a major setback for Boeing in its efforts to find new customers for the 717 and keep the aircraft's production line going. The 717 had long been considered a likely winner in the Cebu Pacific competition, given that the aircraft was developed from the DC-9 airframe, but sources say certain airline executives later pushed for the A319, in part because of residual values.
The loss of the Cebu Pacific deal will spark fresh questions about the future of the 717 production line, for which there is a backlog of 35 aircraft and few new customer prospects. In March, Boeing revealed in a US Securities and Exchange Commission filing that closing the 717 line could cost it $400 million in charges (Flight International, 16-22 March). Since the announcement, Boeing has booked a follow-on order for six 717s from launch customer AirTran Airways, which is the biggest single operator of the type.
Boeing says the Cebu decision "is not going to spur any immediate programme decision at this time". It also says that Cebu's Airbus decision reflects "a strategic shift to go beyond domestic ranges with the new aircraft...they wanted a bigger aircraft".
The US manufacturer continues to hold out for more business, saying: "We are moving forward with the programme. There are still campaigns going on, including some new ones with existing 717 customers."
NICHOLAS IONIDES / SINGAPORE & GUY NORRIS / LOS ANGELES
Source: Flight International
