Gokongwei-led Cebu Pacific is in takeover talks to purchase the Zobel family’s AirSWIFT, which operates turboprop flights to resorts nationwide and holds crucial slots at Manila’s Ninoy Aquino International Airport, the country’s congested main gateway.
On Monday, Cebu Pacific (CEB) confirmed a report by the Philippine Star on the potential deal.
“We confirm that CEB is currently engaged in exploratory talks with Ayala Land Inc. but nothing definitive has been agreed upon,” said the airline giant, part of the Gokongwei family conglomerate JG Summit Holdings.
“CEB’s track record of success means other businesses do prefer partnering with Cebu Pacific when it comes to aviation initiatives,” it added.
Big picture
Cebu Pacific is taking the lead in industry expansion with its second potential acquisition since buying Tigerair Philippines for $15 million a decade ago.
Earlier this year, the Gokongweis and Zobels completed the merger between Robinsons Bank and the larger Bank of the Philippine Islands as the surviving entity.
Regional operations
AirSWIFT operates five ATR aircraft for short trips from Manila and Clark Airport, flying to destinations such as Coron and El Nido in Palawan, Boracay, Cebu, Bohol, and Sicogon.
Cebu Pacific is the largest ATR operator in the Philippines. This adds to its P1.4 trillion deal to purchase up to 152 Airbus single-aisle jets.
Revenue bump
AirSWIFT is considered a non-core asset of Ayala Land but serves as a complementary service to the developer’s resorts in El Nido.
AirSWIFT revenues are lumped under the builder’s property management business. The combined segment posted revenues of P1.54 billion during the first quarter of 2024.
During this period, Cebu Pacific's revenues jumped over 21 percent to P25.3 billion while net income more than doubled to 2.24 billion from the previous year.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
