Cebu Pacific in ‘exploratory talks’ with Ayala for airline

BUDGET carrier Cebu Pacific confirmed on Monday that it is currently in exploratory talks with Ayala Land Inc. regarding a potential acquisition of AIRSWIFT.

In a clarification attached to a disclosure, Cebu Pacific acknowledged the discussions but emphasized that no definitive agreement has been reached.

“Cebu Pacific is always on the lookout for opportunities to grow and expand its network, including partnership with other parties. We confirm that Cebu Pacific is currently engaged in exploratory talks with Ayala Land Inc. but nothing definitive has been agreed upon,” the disclosure read.

AIRSWIFT, a boutique airline under the Ayala Group, is known for its routes servicing popular tourist destinations, namely: El Nido, Cebu, Boracay, and Bohol, among others. It operates a small fleet of turboprop planes.

“Cebu Pacific’s track record of success means other businesses do prefer partnering with Cebu Pacific when it comes to aviation initiatives.

Should any opportunity move from a proposal to a firm business undertaking, we will make the proper disclosures. We also endeavor that whatever business proposals we carefully evaluate, we never let it become a distraction to our core business,” the company noted.

The Gokongwei-led carrier is no stranger to acquiring other airlines. In 2014, it acquired Tigerair Philippines and later on rebranded it to Cebgo, which now serves local destinations.

Cebu Pacific operates a diversified commercial fleet that includes eight Airbus 330s, 39 Airbus 320s, and 21 Airbus 321s, and 15 turboprops.

The carrier is beefing up its operations in anticipation of more planes in the future. It has signed a memorandum of understanding (MOU) with Airbus for the purchase of as much as 152 Airbus A321 new engine option (Neo) jets.

The deal is valued at $24 billion or about P1.4 trillion based on list prices and is the “largest aircraft order in Philippine aviation history.”

The MOU encompasses firm orders for up to 102 A321neo aircraft, with an option to purchase an additional 50 A320neo family jets.

Currently, it flies to 35 domestic and 25 international destinations across Asia, Australia, and the Middle East.

In 2023, Cebu Air Inc. swung to a profit, after recording a surge in revenues due to stronger passenger demand.

It reported an operating income of P8.6 billion and a net income of P7.9 billion in 2023, with revenues reaching P90.6 billion, a 60-percent growth driven by strong passenger demand.