Cebu Pacific (CEB) said Monday it expanded its presence in the leisure travel market through the acquisition of AirSWIFT Transport Inc., a boutique airline owned by the Ayala family.
The airline of the Gokongwei Group said it signed a share purchase agreement (SPA) with Ayala’s ALI Capital Corp. to buy 100 percent of the shares of AirSWIFT for P1.75 billion.
The transaction was approved by the boards of directors of Cebu Pacific and ALI Capital Corp. It allows both organizations to focus on their respective core businesses, enhancing operational focus and efficiency and marking an exciting new chapter for both AirSWIFT and CEB.
Following the SPA, Cebu Pacific said there would be no change in AirSWIFT’s flight schedules and service.
A boutique airline that 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 in the country, including Cebu, Boracay, Coron and Bohol.
Its parent company ALI Capital is a wholly-owned subsidiary of Ayala Land Inc., the Philippines’ largest property developer.
“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.
Cebu Pacific said it is committed to leveraging its operational expertise to integrate AirSWIFT into its network and offer more cost-effective options and enhanced accessibility for its growing customer base.
Once integrated, Cebu Pacific will add El Nido to its routes, widening its network and connectivity for domestic and international travelers that would 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,” said Cebu Pacific president and chief commercial officer Xander Lao.
“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,” Lao said.
