The Gokongweis' Cebu Pacific Buys AirSWIFT from the Ayalas for P1.75 Billion
Cebu Pacific (CEB) and ALI Capital Corp., on Monday, October 7, signed a share purchase agreement for CEB's 100 percent acquisition of AirSWIFT Transport Inc. for P1.75 billion.
This confirmation comes after Philippine Star's news report titled "Cebu Pacific buys out Ayala airline for P1.75 billion." The PSE Disclosure Form 4-13 also comes with a PSE Disclosure Form 4-2 regarding the Acquisition of Shares of Another Corporation that was submitted to the PSE today.
According to the disclosure, "This strategic decision allows both organizations to focus on their respective core businesses, enhancing operational focus and efficiency, and marks an exciting new chapter for both AirSwift and CEB."
The transaction was approved by CEB's and ALI Capital Corp's respective Board of Directors. ALI Capital is a wholly-owned subsidiary of Ayala Land, Inc. Cebu Air, Inc., which operates under the trade name Cebu Pacific Air and is owned by JG Summit Holdings, Inc.
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What happens to AirSwift following Cebu Pacific's acquisition?
CEB also confirmed that there would be no change in AirSWIFT's flight schedule and service, which includes flights from Manila and Clark to El Nido, Palawan, as well as routes from El Nido to Cebu, Boracay, Coron, and Bohol. The acquisition allows CEB, which currently flies to 35 domestic and 26 international destinations, to expand its network and connectivity to the Philippines' last ecological frontier.
“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,” said ALI Capital President Alfonso Javier Reyes in a press statement.
“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. 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 Pacific President and Chief Commercial Officer Xander Lao.
Exploratory talks between Ayala Land Inc. and the Gokongwei-owned airline were first heard and confirmed in July 2024. CEB also disclosed that they have signed a memorandum of understanding with French aircraft manufacturer Airbus for the purchase of 152 Airbus A321 new engine option (Neo) jets for a whopping P1.4 trillion. Delivery of the first batch is in 2029.
