Gokongwei-led Cebu Air Inc. is weighing options to integrate AirSWIFT into Cebu Pacific’s operations following the latter’s successful acquisition of the boutique carrier last October.
In a disclosure to the Philippine Stock Exchange (PSE) on Tuesday, Dec. 3, Cebu Air said it was exploring the possibility of merging AirSWIFT into Cebu Pacific, though such plans are not expected to occur in the near future.
“While the integration remains a possibility, no definitive plans or timelines have been formulated at this stage. Should there be any developments or material updates on this matter, the Company will ensure timely and transparent disclosure in accordance with applicable regulations,” Cebu Air said.
Cebu Air officially took over AirSWIFT in October following a share purchase deal with Ayala Land Inc. (ALI) for a total of P1.75 billion. The acquisition involved 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.
Following the acquisition, Cebu Pacific will gain direct flight access to El Nido, allowing both organizations to focus on their respective core businesses and enhance focus and efficiency in 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 Xander Lao, Cebu Air President and Chief Commercial Officer.
“[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. 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 Philippines’ broader economic growth and connectivity goals,” said Cebu Pacific Chief Executive Officer Michael Szucs.