Cebu Air Inc., operator of low-cost carrier Cebu Pacific, officially took over AirSwift Transport Inc. following its acquisition of the latter’s entire stake from Ayala Land Inc. (ALI) for P1.75 billion.
On Monday, Oct. 7, Cebu Air signed a share purchase agreement with ALI’s wholly-owned subsidiary ALI Capital Corp. for the sale of 9.1 million shares in AirSwift at a price of P13.10 apiece.
AirSwift is a boutique airline operating flights from Manila and Clark to El Nido, and from El Nido to other major tourist destinations in the country including Cebu, Boracay, Coron, and Bohol.
The purchase gave Cebu Pacific direct flight access to El Nido and allowed both organizations to focus on their respective core businesses and enhance focus and efficiency on their operations.
“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,” said Cebu Air President and Chief Commercial Officer Xander Lao.
“[We continue] to undertake measures to boost connectivity to various Philippine destinations while offering low fares, thus contributing to economic growth and tourism development goals,” he added.
Meanwhile, ALI Capital President Alfonso Javier Reyes said that the company’s 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,” he said.
Cebu Pacific has been actively pursuing an expansion strategy this year. Just recently, it announced what it touted as the “largest aircraft purchase” in Philippine history with the purchase of 152 aircraft from Airbus for $24 billion.
“This milestone signals our ongoing dedication to expanding air travel accessibility and affordability, while supporting the Philippine’s broader economic growth and connectivity goals,” said Cebu Pacific Chief Executive Officer Michael Szucs.