Philippine low-cost carrier Cebu Pacific has signed a share purchase agreement (SPA) with ALI Capital to acquire 100% of AirSWIFT Transport for Php1.75 billion ($30 million).
According to Cebu Pacific, the transaction has been approved by the Board of Directors of both companies.
The acquisition means Cebu Pacific will have an additional five turboprops from the boutique carrier, which was owned by Ayala Corporation, the Philippines’ oldest conglomerate under the Zobel de Ayala Filipino-Spanish family.
AirSWIFT, which caters to the leisure domestic market in the Philippines, flies between the island and resort destinations of El Nido, Palawan and Boracay, have a total of three ATR 72s, and two ATR 42s.
Cebu Pacific said that there will be no change in AirSWIFT’s flight schedules and service following its SPA signing.
“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 statement.
Once integrated, Cebu Pacific will add El Nido to its routes, widening its network and connectivity for domestic and international travelers. Cebu Pacific currently 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,” Cebu Pacific President and Chief Commercial Officer Xander Lao said.
“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 added.