Cebu Pacific open to possible acquisitions


Posted at Jan 03 2014 09:28 PM | Updated as of Jan 04 2014 05:28 AM

MANILA, Philippines – Low-cost carrier Cebu Pacific, JG Summit Holdings Inc.'s airline business unit, is open to acquisitions and alliances, one of its officials said.

JG Summit senior vice-president and chief strategy officer BJ Sebastian said the airline is constantly in talks with several companies, including Tiger Airways Philippines, for possible partnerships.

“As a matter of course, Cebu Pacific is always in discussions with various parties including TigerAir for possible alliances or acquisition,” Sebastian said, but refused to divulge details on the discussions.

“With respect to TigerAir, there is nothing definitive yet that can be disclosed,” he said.

Sebastian said Cebu Pacific is on the lookout for possible strategic alliances and acquisitions to take advantage of growth and profit opportunities.

“This would improve the profitability of the airline,” he said.

Cebu Pacific earlier reported that its earnings dropped 71 percent to P664.1 billion in the first nine months of 2013 from P2.27 billion compared to the same period in 2012.

The plunge was caused by foreign exchange losses amounting to P1.5 billion due to long-term US dollar denominated debt from the acquisition of new aircraft.

Cebu Pacific is currently in a $4 billion re-fleeting program involving the acquisition of 49 brand new Airbus aircraft to launch more long-haul flights to Europe and the US.