Cebu Air Inc., the airline unit of the Gokongwei Group that operates budget carrier Cebu Pacific, said it has signed a deal with ALI Capital Corp. to acquire AirSwift Transport Inc. for P1.75 billion in cash.
This acquisition is a strategic step in Cebu Pacific’s expansion, as Airswift operates flights from Manila and Clark to El Nido and other popular destinations like Cebu, Boracay, Coron, and Bohol.
The sale of Airswift will allow ALI Capital, a subsidiary of Ayala Land Inc., and Cebu Air to sharpen their operational focus and efficiency.
The Ayala and Gokongwei groups are both shareholders in the Bank of the Philippine Islands, the country’s fourth largest lender by assets.
The transaction was valued after careful negotiations, considering AirSwift’s net asset value and financial performance.
Cebu Air said the payment will be made in escrow, with funds released after all post-closing obligations are met. Following the acquisition, Cebu Pacific will add El Nido to its route network, creating new growth opportunities and enhancing cost-effective travel options for its customers.
In the wake of the transaction, Cebu Pacific ruled out changes in AirSWIFT’s flight schedules and service.
The boutique airline caters to the domestic leisure travel market, AirSWIFT operates flights from Manila and Clark to El Nido in northern Palawan, and from El Nido to other major tourist destinations such as Cebu, Boracay, Coron and Bohol.
“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,” Alfonso Javier Reyes, ALI Capital president, said.
Cebu Pacific commits to leverage its operational expertise to integrate AirSWIFT into its network and offer more cost-effective options and enhance accessibility for its growing customer base.
When integrated, Cebu Pacific will add El Nido to its routes, widening its network and connectivity for domestic and international travelers which will contribute to growth opportunities for local communities and businesses in key tourist destinations.
Cebu Pacific flies 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,” Xander Lao, Cebu Pacific president and chief commercial officer, said.
“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.
