Cebu Pacific has acquired regional compatriot AirSWIFT in a deal worth Ps1.75 billion ($30.8 million).
The acquisition – the subject of speculation in recent months – will see Cebu Pacific enter into a share purchase agreement with AirSWIFT parent company Ayala Land for 100% shareholding of the regional operator.
Cebu Pacific did not disclose a timeline for the acquisition, but notes that there will no changes to AirSWIFT’s operating schedules once the deal is completed.
AirSWIFT is a “boutique carrier that caters to the domestic leisure travel market”. It operates a fleet of four ATR turboprops – comprising two ATR 72-600s and two ATR 42-600s – to tourist spots like El Nido, Boracay and Bohol.
“Following its purchase, Cebu Pacific will eventually add El Nido to its routes, widening its network which will contribute to growth opportunities, and leveraging its operational expertise to be able to offer more cost-effective options for its growing customer base,” says Cebu Pacific.
The airline in July confirmed reports it was in discussion with Ayala Land over a possible acquisition, but stressed there was nothing firm yet.
In an interview with FlightGlobal, Cebu Pacific’s finance chief Mike Cezar said AirSWIFT has a “nice niche operation” with access to “very attractive markets”. He added that AirSWIFT could “perfectly complement” Cebu Pacific’s own ATR operations.
The airline states: “This strategic decision allows both organisations to focus on their respective core businesses, enhancing operational focus and efficiency, and marks an exciting new chapter for both AirSwift and Cebu Pacific.”
The acquisition comes as Cebu Pacific embarks on its next phase of expansion: on 2 October it signed the purchase agreement for up to 152 Airbus narrowbodies, firming up a record deal it first disclosed in July.
The airline will make a “minimum commitment” of 70 A321neos, the first of which will be delivered to the airline from 2029.
