Print
03
Jul

Cebu Air sells majority stake in aviation unit

Share

By Miguel R Camus | Philippine Daily Inquirer

Cebu Air Inc., the operator of Cebu Pacific Air, has sold its majority stake in its newly established aviation support unit, 1Aviation Groundhandling Services Corp.

It said in a stock exchange filing on Monday that the buyers were Philippine Airport Ground Support Solutions Inc., also known as PAGSS, and the latter’s shareholder, businessman Jefferson G. Cheng.

Cebu Air said it had sold the 60-percent stake in 1Aviation Groundhandling for an undisclosed amount.

The deal gives PAGSS a major footprint in the crucial aircraft ground handling business, where it will compete with other players, including Lucio Tan’s MacroAsia Corp.

1Aviation Groundhandling was incorporated in March, a move mainly motivated by the government’s decision not to renew a contract with Miascor Aviation Services in Manila’s Ninoy Aquino International Airport and other air gateways.

Cebu Pacific was a major customer of Miascor, which was once the country’s largest independent ground handling company.

Cebu Air president Lance Gokongwei was quoted in the disclosure as welcoming the investment by Cheng, whose family owns Philippine International Air Terminals Co. (Piatco), and PAGSS, adding the company “brings decades of experience in ground handling for the benefit of airline passengers.”

Cebu Air announced separately that it had 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 Gokongwei.

Cebu Air 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.

CAB Hotline

Public Assistance 24/7

165-66

Secondary Numbers

NAIA Terminal1 0919-9128457 Laguindingan 0919-9128468
NAIA Terminal2 0919-9128458 Laoag Airport 0998-5864834
NAIA Terminal3 0919-9128451 Legaspi Airport 0919-9128461
NAIA Terminal4 0919-9128470 Mactan-Cebu Int'l. 0919-9128464
Clark Int'l .Airport 0919-9128471 Naga Airport 0919-9128462
Boracay Airport 0919-9128453 Ozamis Airport 0998-5864835
Bacolod Airport 0998-5864828 Pagadian Airport 0998-5864836
Basco Airport 0998-5864829 Puerto Princessa 0998-5864837
Busuanga Airport 0919-9128460 Roxas Airport 0998-5864838
Butuan Airport 0998-5864830 Siargao Airport 0919-9128456
Davao Int'l. Airport 0919-9128469 Surigao Airport 0998-5864839
Dipolog Airport 0998-5864832 Tacloban Airport 0998-5864840
Dumaguete Airprot 0998-5864833 Tagbiliran Airport 0919-9128465
General Santos 0919-9128467 Tugeugarao Airport 0998-5864841
Iloilo Int'l .Airport 0919-9128466 Virac Airport 0919-9128463
Kalibo Int'l. Airport 0919-9128454 Zamboanga Airport 0998-5864842

✆ 852-8967 (CAB Legal and Enforcement Division)
APBR@cab.gov.ph

Trunk Lines:
☎ (+632) 853-7259
☎ (+632) 854-5996