Manilla based Budget carrier Cebu Pacific is expanding as it made a major move to strengthen its dominance in the domestic travel market, acquiring AirSWIFT Transport Inc. from Ayala Land Inc. (ALI) Capital Corp. for P1.75 billion.
According to Cebu Pacific, there will be no change in the flight schedules and service of AirSWIFT, which operates flights from Manila and Clark to El Nido, Palawan, and from El Nido to Cebu, Boracay, Coron, and Bohol.
Once integrated, Cebu Pacific said it will add El Nido to its routes, with the carrier currently operating flights to 35 domestic and 26 international destinations.
“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,” said Cebu Pacific president and chief commercial officer Xander Lao.
“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 also earlier said it is “always on the lookout for opportunities to grow and expand its network, including partnerships with other parties.”
Expansion plan is visible here, worth mentioning, Cebu Pacific last week placed a firm order with Airbus for 70 A321neo, finalising an MoU announced by the airline in July. Cebu Pacific operates 61 A320 Family aircraft on its extensive regional network at present.
The P1.75 billion, comprised of payment for outstanding shares and shareholder advances, was arrived at “after arm’s length negotiations on a willing-buyer, willing-seller basis and took into account, inter alia (among other things), the net asset value and financial performance of AirSWIFT.”
The amount will be a one-time payment but CEB will place the sum in escrow. The funds will only be released after all post-closing obligations and the post-closing adjustments are met, as detailed in the sales purchase agreement.
Cebu Pacific said the acquisition of AirSWIFT
“is expected to have a material impact on the net assets and earnings per share of CEB.”
"Once integrated, CEB will add El Nido to its routes, widening its network and connectivity for domestic and international travelers," said Cebu Pacific.
AirSWIFT was founded in 2002 as Island Transvoyager and was acquired by Ayala in 2012. In October 2015, Island Transvoyager rebranded as AirSWIFT.
ALI Capital President Alfonso Javier Reyes said:
“Our investment in AirSWIFT has been a key enabler in the growth of El Nido as a world-class tourist destination. With this transaction, we are hopeful that the expertise of Cebu Pacific will bring lower cost options and greater accessibility to El Nido.”
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