Philippine budget airline Cebu Pacific (CEB.PS) said on Wednesday it would lease two Airbus (AIR.PA) A320 jets to Saudi budget carrier flyadeal to generate revenue from its excess capacity during the Southeast Asian country's low season.
In the "wet lease" agreement, Cebu Pacific will rent the narrow-body aircraft, along with its pilots, crew and maintenance, to flyadeal during the Philippines' lean months in July and August, a busy period for the Saudi carrier.
"We have this natural symbiosis where my peak is not his and vice versa," flyadeal CEO Steven Greenway said at a press conference.
Cebu Pacific CEO Michael Szucs said the deal was the first time the budget carrier had leased out its planes, and said more aircraft could be leased as its new fleet orders arrive.
"We're testing the waters," Szucs said.
Last year, Cebu Pacific agreed to buy a minimum of 70 Airbus A321neo aircraft to secure its long-term fleet needs.
The wet lease agreement also come on the heels of flyadeal's plans to expand into Southeast Asia after ordering 10 A330neo wide-body jets as it expands in long-haul markets.
Greenway said three of the 10 aircraft it ordered will be in operation by July 2027, with two more planes arriving towards the end of that year.
"Southeast Asia is our key destination for these aircraft," Greenway said in an interview, eyeing the Philippine, Malaysian and Indonesian markets.
"Obviously, the Philippines is interesting because of our partnership with Cebu Pacific," he added.
Flyadeal could bring Philippine traffic into the Gulf region, including overseas workers and travellers for the annual Muslim Haj pilgrimage, Greenway said.
