Cebu Air enters cargo business

Cebu Air, Inc. has signed an agreement with Switzerland-based IPR Conversions Ltd to convert two of its ATR 72-500 passenger aircraft into dedicated cargo aircraft.

This marks the first foray of Cebu Pacific in operating specialized aircraft to transport cargo.

“We will be able to offer cargo capacity that no other carrier in the Philippines can provide,” said Lance Gokongwei, president and CEO of Cebu Pacific, “With the freighter aircraft, we will further support the growing needs of the logistics industry, especially as the Philippines’ e-commerce businesses expand rapidly and look for faster delivery schedules.”

CEB expects to receive the first of two converted aircraft in the fourth quarter of 2018. The cargo aircraft will continue to be operated through its wholly-owned subsidiary, CebGo.

The conversion of two of CEB’s passenger ATR 72-500 aircraft into dedicated air freighters involves the installation of a large cargo door, allowing standard containers and pallets used throughout the aviation industry to be loaded. The aircraft will have space for seven AKE Unit Load Device (ULD) containers; and can carry more than seven tons of cargo.

Both aircraft will be converted at the facility of Sabena Technics DNR S.A.S. in Dinard, France.

With a longer body to fit in more freight, an increased wing- span and more powerful turboprop engines, the ATR aircraft is ideal for expediting the transport of high- value and time-sensitive commodities such as marine products, computing equipment and even heavy machinery to various points across the country. It is suited to landing and taking-off in airports with runways less than 1.2 kilometers long—which is too short for jet aircraft. Only about one-third of the 90 airports in the Philippines can land jets.

Meanwhile, Cebu Air sold 60 percent of its shares in 1Aviation Groundhandling Services Corp. (1Aviation) to the Philippine Airport Ground Support Solutions, Inc.

(PAGSS) and Jefferson G. Cheng.

Gokongwei welcomed this development, saying this investment by Cheng and PAGSS brings decades of experience in ground handling for the benefit of airline passengers. /