Cebu Air Inc., operator of the Gokongwei Group’s budget carrier Cebu Pacific, is raising its stake in 1Aviation Groundhandling Services Corp. by converting the majority of the loans it extended to certain shareholders of the airline service affiliate.
1Aviation is one of the leading providers of ground handling services in the Philippines.
Founded in March 2018, 1Aviation currently operates in 34 airports across the country, employing 6,224 people, and continues to expand its operations, supporting the country’s largest airline as well as other international carriers.
By converting P113 million in debt to 1.13 million shares, Cebu Pacific will increase its stake in 1Aviation to 60 percent from 40 percent.
This debt conversion is expected to enhance 1Aviation’s financial health.
Cebu Pacific extended a total of P150 million to 1Aviation Groundhandling Services Corp., Philippine Airport Ground Support Solutions, Inc., and Jefferson G. Cheng, whose collective stake will decrease to 40 percent.
As a majority owner, Cebu Pacific can integrate 1Aviation’s services more seamlessly with its operations, creating synergies that could reduce operational costs and improve service quality, particularly in ground handling and logistical support.
