CEBU Pacific (CEB) plans to aggressively expand its operations in El Nido, Palawan, following the buyout of its rival, AirSWIFT Transport Inc.
In a disclosure to the Philippines Stock Exchange, CEB said it has signed a share purchase agreement (SPA) with ALI Capital Corp. to buy 100 percent of the shares of AirSWIFT for P1.75 billion.
Once integrated, El Nido will be added to CEB’s routes, widening its network and connectivity for domestic and international travelers.
“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 Xander Lao, CEB president and chief commercial officer.
“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.
The share purchase allows both organizations to focus on their respective core businesses, enhancing operational focus and efficiency and marking a new chapter for both AirSWIFT and CEB.
Following the SPA, there will be no change in AirSWIFT’s flight schedules and service which 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 Alfonso Javier Reyes, ALI Capital president.
CEB 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.
CEB currently flies to 35 domestic and 26 international destinations.
AirSWIFT carried 254,667 passengers from January to June this year. Last year, it served a total of 355,458 passengers, based on data from the Civil Aeronautics Board.
