CEBU PACIFIC BUYS AIRLINE AIRSWIFT WORTH P1.7 BILLION

Cebu Pacific is buying hundred percent share of the boutique airline operator AirSWIFT for P1.7 billion (Photo courtesy of AFP/Ted Aljibe)

The Gokongwei-led budget carrier Cebu Pacific has bought out  Ayala-led ALI Capital Corp.’s boutique airline AirSwift for P1.75 billion share purchase agreement (SPA) to establish a route to popular tourist spots.

AirSWIFT said Cebu Pacific has inked a share purchase agreement with ALI Capital Corp. to buy 100 percent of AirSWIFT Transport Inc. shares. AirSWIFT is known for its fleet of planes that serve passengers in Boracay, El Nido, Cebu, Bohol, and other local tourist destinations.

Once integrated, Cebu Pacific said it will add El Nido to its routes cementing its reputation as the carrier with the widest domestic reach, with the carrier currently operating flights to 35 domestic and 26 international destinations. 

“This strategic decision allows both organizations to focus on their respective core businesses, enhancing operational focus and efficiency, and marks an exciting new chapter for both AirSwift and Cebu Pacific,” Cebu Air Inc. said in a statement.

ALI Capital is a wholly owned subsidiary of Ayala Land, Inc., one of the Philippines’ largest property developers, the boutique airline said flight schedules and service will stay the same after the CebPac purchases it.

Cebu Pacific president and chief commercial officer Xander Lao said, “Cebu Pacific continues to undertake measures to boost connectivity to various Philippine destinations while offering low fares, thus contributing to economic growth and tourism development goals.”

“We are excited to play our part in increasing accessibility to local destinations that have high potential and are world renowned for having some of the best beaches in the world,” he added. 

Cebu Pacific stands in the domestic scene as the biggest airline by passenger volume, and it is eyeing to fly a record 24 million travelers this year. It recently signed a P1.4-trillion aircraft purchase deal with engine manufacturer Pratt & Whitney of 152 aircraft, including 102 Airbus A321neo, and 50 A320 Family, the biggest deal in Philippine aviation history.

Source: Philippine Star 

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