Cebu Pacific Air (5J, Manila Ninoy Aquino International) is in talks to acquire AirSWIFT (T6, Manila Ninoy Aquino International), according to a July 22 filing with the Philippines Stock Exchange (PSE). The deal could be closed within two months and provide Cebu with an entrée card to El Nido on Palawan island, an emerging tourism hotspot only served on a scheduled basis by AirSWIFT.
AirSWIFT is owned by Ayala Corporation's property arm, Ayala Land Inc., and operates domestic scheduled and non-scheduled air services. Much of its business comes from ferrying passengers to and from resorts operated by affiliated company El Nido Resorts. ch-aviation PRO airlines data reveals it flies to Angeles City Clark International, Busuanga, Caticlan, Cebu, Manila Ninoy Aquino International, and Panglao from El Nido, as well as between Tablas and Manila. The airline's fleet includes two ATR42-600s and three ATR72-600s. Ayala is reportedly open to selling AirSWIFT as running an airline is not among the group's core competencies.
"We confirm that Cebu Pacific is currently engaged in exploratory talks with Ayala Land Inc. but nothing definitive has been agreed on," the filing reads. "Cebu Pacific is always on the lookout for opportunities to grow and expand its network, including partnership with other parties."
The far larger Cebu Pacific flies to 53 airports in 15 countries with a fleet of 69 aircraft, including nineteen A320-200s, nineteen A320-200Ns, seven A321-200s, fifteen A321-200NX, one A330-300, and eight A330-900Ns. Its Cebgo (DG, Manila Ninoy Aquino International) subsidiary operates five ATR72-500s, two -500(F)s, and fifteen ATR72-600s on scheduled flights throughout the Philippines.
The Gokongwei family controls Cebu via an entity called CPAir Holdings, Inc., which owns 63.6% of Cebu's publicly traded stock. In turn, CPAir is owned by JG Summit Holdings, an umbrella company for Gokongwei family business ventures. Lance Y. Gokongwei is Cebu Pacific's chairman.
Cebu Pacific does not presently serve El Nido, and the destination, well-known for its beaches and dive sites, is seen as complementary to its tourist-orientated services to Busuanga and San Vicente, also in the Palawans.
