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Tag: cebu

  • Cebu Pacific announces seat sale for 7.7

    Cebu Pacific announces seat sale for 7.7

    Cebu Pacific announced its 7.7 seat sale on Wednesday.

    In an advisory, the budget airline said travelers can avail of a P188 one-way base fare for domestic flights.

    The booking period is from July 7 to July 11, 2022, with a travel period from September 1, 2022 to January 31, 2023.

    Alongside the domestic flight sales, Cebu Pacific is also offering a special international seat sale for as low as P499 one-way base fare for the same travel period.

    “This includes flights to South Korea, Singapore, Hong Kong, Taipei, Hanoi, Ho Chi Minh, Bangkok, among others,” the airline said.

  • Cebu Pacific Resumes Sydney Flights With Its Airbus A330neo

    Cebu Pacific Resumes Sydney Flights With Its Airbus A330neo

    Another international airline has returned to Sydney, with Cebu Pacific resuming its popular flights between Sydney and Manila on July 1. Cebu Pacific had carved out a niche in Australia by offering a low-cost alternative to Qantas and Philippine Airlines before the pandemic but paused its flights in March 2020. Now the airline is back with thrice-weekly return flights.

    The return of Cebu Pacific is another step forward for Sydney Airport, which lost a lot of carriers at the pandemic’s start. Most, but not all, have returned or planned to return and the airport is keen to get as many former airlines back as possible. In 2019, the most recent year of uninterrupted flying for airlines, 776 660 people flew on the Australia – Philippines country pair, with airlines offering 3,429 nonstop flights. Cebu Pacific competed with Qantas and Philippine Airlines on the country pair, with the low-cost carrier snagging 35% of the market in terms of passenger numbers.

    Landing in Sydney on a wild and wet Saturday morning, Cebu Pacific was the last of the three carriers to resume flights between Australia and the Philippines.

    “With this route resumption, we are pleased to fly once again to and from this destination after more than two years,” said Cebu Pacific Chief Commercial Officer Xander Lao. “We know that many are excited to visit Sydney’s attractions. This route also allows Filipinos to reunite with friends and family.”

    It takes around eight and a half hours to cover the 3,879 miles (6,243 kilometers) between the two cities. The flights down to Sydney are overnight services, while flights up to Manila are civilized daytime journeys. At 23:20 every Monday, Wednesday, and Friday, a Cebu Pacific Airbus A330-900 will operate flight 5J39 to Sydney (SYD), arriving at 09:50 the following day. Heading up to Manila (MNL), 5J40 will depart Sydney at 11:20 every Tuesday, Thursday, and Saturday and touch down in Manila at 17:50 on the same day.

    While Cebu Pacific generally undercuts its competitors on this route, you’ll be on the receiving end of an authentic medium-haul low-cost flying experience. Cebu Pacific fits 436 passengers on its A330-900s in a standard 3-3-3 layout across the entire plane. This is an impressive number of passengers, but there won’t be much room to move during your eight-plus hours in the air. Baggage, seat selection, and meals are all add-ons.

    Cebu Pacific’s return to Australia coincides with that country dropping the last of its COVID-related travel restrictions. The longstanding policy of checking vaccination certificates and current status before boarding an Australia-bound flight ends this week. Australia is also axing its previously compulsory but deeply flawed digital passenger declaration app in favor of returning to the low-tech but infinitely preferable hard copy arrival declaration. It marks a return to pre-pandemic arrival processes in Australia.

    Meanwhile, the Philippines is open to all fully vaccinated international tourists as they can present proof of complete COVID-19 vaccination and at least one booster shot. However, there do remain some domestic travel restrictions and guidelines imposed by the national and local governments to help control the spread of COVID-19 within the Philippines.

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  • Cebu Pacific to resume flights to Bali, Hanoi, Sydney

    Cebu Pacific to resume flights to Bali, Hanoi, Sydney

    Budget carrier Cebu Pacific recently announced that it is resuming to key international destinations in a bid to boost its frequencies in overseas routes.

    As more countries ease travel restrictions, the airline said it is resuming flights to Bali, Indonesia; Hanoi, Vietnam and Sydney, Australia to bring the number of its international destinations to 16 by the end of June.

    The carrier said it plans to operate weekly flights on the Manila-Hanoi-Manila and Manila-Bali-Manila routes next month.

    In June, it intends to operate thrice weekly flights to and from Sydney.

    From January to April, Cebu Pacific restarted flights to six international routes namely Bangkok, Thailand; Fukuoka, Japan; Jakarta, Indonesia; Dubai, United Arab Emirates; Hong Kong and Ho Chi Minh also in Vietnam.

    It is also currently operating flights to Kuala Lumpur, Malaysia; Singapore; Seoul (Incheon), Korea; Nagoya and Tokyo (Narita), Osaka, Japan and Guangzhou, China.

    Below appears the flight frequencies of the overseas routes:

    Route Frequency
    Manila – Bangkok – Manila Every Tue / Thu / Sat
    Manila – Dubai – Manila Daily
    Manila – Fukuoka – Manila Every Tue
    Manila – Guangzhou – Manila Every Tue
    Manila – Ho Chi Minh Every Tue
    Ho Chi Minh – Manila Every Wed
    Manila – Hong Kong – Manila Daily
    Manila – Jakarta Every Fri
    Jakarta – Manila Every Sat
    Manila – Kuala Lumpur Every Mon
    Kuala Lumpur – Manila Every Tue
    Manila – Nagoya – Manila Every Tue / Thu / Sat / Sun
    Manila – Osaka – Manila Every Mon / Fri
    Manila – Seoul (Incheon) – Manila Every Thu / Sat
    Manila – Singapore – Manila Daily
    Manila – Tokyo (Narita) – Manila Every Mon / Wed / Fri / Sun
    Manila – Bali – Manila Every Mon / Fri (starting May 2)
    Manila – Hanoi – Manila Every Mon / Fri (starting May 2)
    Manila – Sydney Every Mon / Wed / Fri (starting June 1)
    Sydney – Manila Every Tue / Thu / Sat (starting June 2)

    Early this month, the country started accepting fully vaccinated foreign leisure travelers with the most relaxed entry protocols, including quarantine-free entry. The country also allowed visitors to freely travel to reopened destinations around the country.

    Cebu Pacific’s chief commercial officer Xander Lao said the airline supports the Department of Tourism’s initiatives to restore tourism.

    They invited Filipino and foreign tourists to visit the country.

    “We invite Filipinos and foreign visitors to plan their travels to the Philippines and explore its beauty, or simply visit family and friends. We look forward to welcoming everyone onboard,” Lao said in a press conference at the World Travel and Tourism Council Global Summit in Pasay City last Thursday.

    The carrier is offering flights to 34 domestic destinations which tourists may also visit. It resumed more direct local flights from major hubs Cebu and Davao, as it restored 100% of its pre-pandemic domestic capacity this month.

    “We are happy to keep enabling everyJuan to safely fly across our largest Philippine network. We are hopeful we can continue contributing to the economic and tourism agenda in and out of the Philippines,” Lao said.

    The budget carrier said it would continue to offer low fares to help the COVID-19 pandemic-hit travel and tourism industry recover while maintaining the implementation of health and safety protocols.

    The airline said it employs 100% fully vaccinated crew with 90% of them already boosted.

    Meanwhile, Lao also congratulated the DOT for hosting the 21st edition of the WTTC Global Summit. It was staged at the Marriott Hotel in Pasay City from April 20 to 22, 2022.

    WTTC also commended the country for hosting the tourism event that signified the recovery of international travel.

  • Cebu Pacific, STB renew partnership

    Cebu Pacific, STB renew partnership

    Cebu Pacific (CEB) has renewed its partnership with the Singapore Tourism Board (STB), which will facilitate the travel of Filipinos to the Lion City.

    Singapore recently reopened its borders for all fully vaccinated Filipinos, making it easier for tourists to enjoy a convenient, quarantine-free vacation. Since April 1, 2022, vaccinated travelers to Singapore enjoy a simplified travel process, requiring only proof of vaccination, a pre-departure Covid-19 test, and an online Singapore Arrival Card.

    “STB is excited to collaborate with CEB and would like to thank them for this opportunity to bring more visitors from the Philippines to Singapore. Through this partnership, Filipino travelers can look forward to attractive promotions and campaigns to warmly welcome them back to Singapore,” said Juliana Kua, Assistant Chief Executive for International Group, Singapore Tourism Board.

    “We are very happy to firm up our collaboration with the Singapore Tourism Board following the easing of travel restrictions in and out the Philippines. We believe this partnership is very timely as it’ll surely contribute to the recovery of both the industry, as well as our respective countries,” said Candice Iyog, Vice President for Marketing and Customer Experience at Cebu Pacific.

    Meanwhile, CEB has achieved a 7-star safety rating from airlineratings.com for its Covid-19 compliance. It continues to implement a multi-layered approach to safety as it endeavors to restore the public’s trust and confidence in air travel.

  • Cebu Pacific provides added protection through CEB Travelsure

    Cebu Pacific provides added protection through CEB Travelsure

    The Philippines’ leading airline, Cebu Pacifi upgrades its CEB Travelsure “Basic Protect” insurance product to now include “COVID Protect”, to inspire travel confidence amidst the current situation. CEB is the first local carrier to offer this type of enhanced coverage in one product.

    Starting January 13, 2022, CEB Travelsure “Basic Protect” becomes even more comprehensive as it now covers COVID-related hospitalization and treatments, on top of up to PHP 2,500,000 medical expenses benefit, in case of an injury or other illnesses, and up to PHP 2,500,000 personal accident coverage during the trip.

    CEB Travelsure “Basic Protect” may be availed by passengers with domestic and international itineraries, as long as their trip starts in the Philippines, for as low as PHP 492 round-trip.

    CEB Travelsure is underwritten by Insurance Company of North America (a Chubb Company). Chubb is the world’s largest publicly traded property and casualty insurance company.

    Passengers can conveniently avail themselves of CEB Travelsure when booking flights on the CEB website or select as an add-on up to two hours prior to their flight via the ‘Manage Booking’ portal on the Cebu Pacific website. Insured passengers will receive their group policy Confirmation of Cover with the details of the travel insurance benefits via email. Customers should contact Chubb directly if they have specific questions about their insurance coverage.

    Chubb also offers a 24/7 Emergency Medical and Travel Assistance Hotline.

    CEB TravelSure is the airline’s comprehensive travel insurance plan which provides extensive trip protection with coverage for costs related to having injuries, illnesses, loss of personal belongings, trip cancellations, emergency assistance, and other unforeseen travel circumstances (subject to the full terms & conditions of the Group Policy). For more information, passengers may visit: https://www.cebupacificair.com/pages/plan-trip/add-ons/travelsure

    CEB has attained 100% vaccination rate for its active flying crew through its very own employee vaccination program, JG Summit COVID Protect, and various partnerships with local government units in the country.

    The airline has been rated 7/7 stars by airlineratings.com for its COVID-19 compliance as it continues to implement a multi-layered approach to safety, in accordance with global aviation standards. These include daily extensive cleaning and disinfection protocols for all aircraft and facilities, on top of its contactless flight procedures. Its jet fleet are equipped with hospital-grade HEPA filters, known to eradicate viruses with 99.9% efficiency.

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  • Cebu Pacific cancels 24 flights due to workforce shortage

    Cebu Pacific cancels 24 flights due to workforce shortage

    Low-cost carrier Cebu Pacific canceled 24 domestic and international flights on Wednesday, citing workforce shortage.

    “Cebu Pacific continues to manage the impact of Covid-19 (coronavirus disease 2019) on its workforce with employees who are either sick or under home quarantine,” it said in an advisory Tuesday night.

    The following flights have been canceled:

    5J893/894 Manila – Boracay (Caticlan) – Manila
    5J905/906 Manila – Boracay (Caticlan) – Manila
    5J787/788 Manila – Butuan – Manila
    5J567/568 Manila – Cebu – Manila
    5J581/582 Manila – Cebu – Manila
    5J975/976 Manila – Davao – Manila
    5J447/448 Manila – Iloilo – Manila
    5J373/374 Manila – Roxas – Manila
    5J653/654 Manila – Tacloban – Manila
    5J506/507 Manila – Tuguegarao – Manila
    5J5054/5055 Manila – Narita (Tokyo) – Manila
    5J310/311 Manila – Taipei – Manila

    Affected passengers may rebook or refund their tickets, or store the value in a travel fund, until 30 days from the original flight schedule.

    The airline said because the situation is still fluid, those with flights until January 23 may also opt to refund their ticket or rebook their flight for travel within 60 days.

    They can also store the amount to a travel fund valid for two years.

  • Cebu Pacific announces P1 seat sale for 11.11

    Cebu Pacific announces P1 seat sale for 11.11

    Cebu Pacific on Wednesday announced an 11.11 seat sale for as low as P1.

    In an advisory, the airline said the promo offer would begin at 12 midnight on November 11, 2021 and end on November 14, 2021, covering the travel period from July 1 to September 30, 2022.

    “Passengers can enjoy Cebu Pacific’s lowest base fare for as low as P1 to over 56 domestic routes and 20 international routes,” the airline said.

    Cebu Pacific vice president for marketing and customer experience Candice Iyog said that the airline welcomes the safe reopening of domestic destinations.

    “We remain cautiously optimistic while we continue to do what we can to support the recovery of the travel and tourism industry,” she said.

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  • Cebu Pacific announces P1 fare promo for all local, international destinations

    Cebu Pacific announces P1 fare promo for all local, international destinations

    Budget carrier Cebu Pacific on Monday announced its first five-day P1 fare promo for all its domestic and international destinations.

    In an advisory, Cebu Pacific said the P1 fare started on October 10 and will be available until Thursday, October 14, 2021, covering flights from June 1, 2022 to August 31, 2022.

    “As we enter the last quarter of the year, we are happy to have seen some positive developments in the travel industry,” Cebu Pacific Vice President for Marketing and Customer Experience Candice Iyog said.

    “More and more people are gaining confidence to travel again, and we are happy to keep supporting our sector’s recovery through our trademark low fares,” she added.

    The flights will cover local destinations such as Boracay, Bohol, Coron, Siargao, and other international destinations such as Tokyo and Osaka.

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  • Cebu Pacific flight cancellations from August 6 to 20

    Cebu Pacific flight cancellations from August 6 to 20

    Budget carrier Cebu Pacific on Saturday released the schedule of its flight cancellations from August 6 to 20, amid the enhanced community quarantine (ECQ) in Metro Manila.

    Flight cancellations have been made after the government allowed only essential travel during the two-week strict lockdown period in the National Capital Region.

    Cebu Pacific earlier released the schedule of its canceled flights from July 31 to August 5, during the general community quarantine “with heightened restrictions” in NCR.

    The following Cebu Pacific and Cebgo flights are cancelled:

    “Affected passengers have been informed via contact details provided in the booking. They may select their preferred option through the Manage Booking portal on the Cebu Pacific website until 30 days from date of departure,” Cebu Pacific said.

    Likewise, the airline said affected passengers may opt to do the following:

    • Rebook for travel within 60 days no additional cost, following CEB’s permanent removal of change fees. Fare difference waived.
    • Store the amount in a virtual CEB wallet valid for two years and use this to either book a new flight or pay for add-ons (e.g. baggage allowance, seat selection, etc.)
    • Refund: the process may take up to two months from the date of request.

    “CEB will continue to operate other domestic and international flights as scheduled,” it said.

    “This is a developing situation. Some flight changes may take place in the coming days,” it said.

    “Before going to the airport, passengers are advised to check?the travel requirements, safety protocols,?and frequently asked questions (FAQs)?on the CEB website,” it added.

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  • Cebu Pacific to operate special flight from Dubai to Manila on July 30

    Cebu Pacific to operate special flight from Dubai to Manila on July 30

    Philippine budget carrier Cebu Pacific (CEB) will have a special commercial flight on Friday, July 30, “in response to the government’s call for assistance to repatriate Filipino workers in Dubai”, the airline confirmed to Gulf News on Monday.

    CEB earlier announced that it had cancelled all its commercial flights to and from Dubai until August 1, following the decision by the Philippine government to “extend the ban on travellers from India, Pakistan, Nepal, Bangladesh, Sri Lanka, Oman and the UAE” until July 30. New passengers and those affected by previous flight cancellations who would like to take the 5J27 Dubai-Manila special flight on July 30, dubbed as Bayanihan flight, may book their tickets on Cebu Pacific website, though seats are subject to availability.

    CEB noted: “Pursuant to current Philippine health protocols, a passenger who would like to take the Bayanihan flight must present a negative COVID-19 RT-PCR result, taken within 48 hours before departure.” Face masks and face shields should always be worn (except during meals) while onboard the aircraft, as an added precaution against the spread of the COVID-19 virus.

    “Pursuant to government’s health protocols, all passengers will be subjected to a 14-day, facility-based quarantine upon arrival in the Philippines. For this purpose, passengers are advised to have pre-booked quarantine hotels for 15 days/14 nights,” CEB added.

    The cost of quarantine hotels for OFWs (overseas Filipino workers) will be paid for by the Overseas Workers Welfare Administration (OWWA); while tourist and returning overseas Filipinos will have to shoulder the cost of hotel quarantine. All the passengers of Bayanihan flights will undergo COVID-19 RT-PCR test after seven days of quarantine. The cost of the test for land-based OFWs will be shouldered by OWWA; while the Philippine Port Authority will cover the cost for sea-based OFWs. Non-OFWs will have to pay for their own RT-PCR test.

    The Philippine government had first imposed restrictions on inbound travel from India, Pakistan, Nepal, Bangladesh, Sri Lanka, Oman and the UAE from May 15 until May 31, in view of the prevailing COVID-19 pandemic and to prevent the spread of the highly transmissible Delta coronavirus variant that first emerged in India. The travel ban was first extended until June 15, then stretched until June 30 before prolonging it further until July 30.

    Thousands of stranded Filipinos in the UAE have signed an online petition seeking to immediately lift the travel restrictions imposed by the Philippine government. The online petition titled ‘Lift the UAE ban! It’s our right to go home’, has garnered over 4,000 virtual signatures.

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  • Cebu Pacific increases flights to Boracay, Bohol ‘to support recovery’

    Cebu Pacific increases flights to Boracay, Bohol ‘to support recovery’

    Budget carrier Cebu Pacific said Monday its flights between Manila and Boracay will now be five times daily, while flights to Bohol will also operate daily.

    The additional flights to Boracay and Bohol, which started on Monday, should “support recovery efforts,” the budget carrier said in an e-mailed statement.

    In a statement on Tuesday, the airline said: “We gradually increased our flights to Boracay weekly — from only two times daily on June 4, three times daily on June 7, four times daily on June 11, and now five times daily beginning yesterday, June 21.”

    “Bohol was at four times weekly in the second week of June and now it’s already one time daily,” it added.

    Cebu Pacific said it currently operates the “widest network” in the country covering 32 destinations, on top of its six international destinations.

    Candice A. Iyog, Cebu Pacific vice-president for marketing and customer service, said: “With the arrival of more vaccines and the pace at which vaccines are being rolled out, we are hopeful that in due time, our networks will recover to pre-pandemic levels.”

    “We remain cautiously optimistic as we prepare for the bounce back and will do everything that is within our control to support and aid that,” she added.

    The International Air Transport Association (IATA) said recently that “over the last months, the recovery of air passenger demand has been mainly driven by domestic markets that have mostly remained unaffected by travel restrictions.”

    “In the meantime, international travel was restricted by most countries and governments are only starting to relax those restrictions as they vaccinate their populations and stabilize the epidemiological situation,” it added.

    Cebu Pacific, operated by Cebu Air, Inc., said it had flown six million coronavirus vaccine doses from China as of June 17, “on top of more than 1.4 million doses carried to 15 Philippine provinces.”

    The number of flights Cebu Pacific had in 2020 was 71% lower at 41,804. The number of passengers it carried last year also dropped 78% to five million.

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  • Cebu hoteliers ink pact with AirAsia

    Cebu hoteliers ink pact with AirAsia

    Philippines AirAsia inked a partnership with the Hotel, Resort and Restaurant Association of Cebu (HRRAC) to help boost tourism and economic recovery in Cebu at a ceremony hosted last Friday.

    Under the Memorandum of Agreement, the Malaysian carrier will become the official airline partner of HRRAC’s hotel members to revitalize the tourism sector and economy of the island province.

    “Tourism stakeholders including AirAsia are united with stakeholders such as the HRRAC, the Department of Tourism and the local government unit in rebooting the tourism industry in Cebu, a vital industry that contributes to the Philippine economy,” said the airline’s CEO Ricky Isla during the signing ceremony.

    “But to succeed, we must offer travelers not just sights but also added value to their money. It is through partnerships that we provide exciting options and promos for our guests who are excited to be rediscovering Cebu as the global health situation is improving,” Isla told the Philippines News Agency.

    AirAsia will come to the table with partnership opportunities for HRRAC member companies to tap the sales potential of the airline’s a-Access, an incentive card that of holiday experiences and discounts.

    “The Covid-19 pandemic has demonstrated to the tourism industry that trust, partnership, and solidarity are essential for revitalizing travel as we anticipate the reopening of borders,” HRRAC president Alfred Reyes, who is also general manager of bai Hotel Cebu.

    Isla noted the long-term objective was to revive the meetings, incentives, conventions, and exhibitions (MICE) industry in Cebu, especially to encourage regional events to meet in Cebu once the pandemic is under control. Cebu was a top choice for MICE events, many of them Asia-wide conventions and exhibitions.

    “We aim to bring back the strong image of the Philippines as a MICE destination,” Isla concluded.

  • Cebu Pacific airlifts more COVID vaccines

    Cebu Pacific airlifts more COVID vaccines

    The Philippines’ leading carrier Cebu Pacific safely delivered some 1.5 million doses of vaccines against coronavirus disease 2019 (COVID-19) in coordination with the Department of Health (DOH).

    The China-made doses recently arrived at the Ninoy Aquino International Airport (NAIA) via 5J 671.

    CEB is in full support of the nation’s vaccination program as it helps ensure these life-saving COVID-19 vaccines are flown safely to the Philippines, and distributed across the rest of the archipelago.

    “This large shipment of COVID vaccines with Cebu Pacific brings us closer to our goal of protecting every Filipino as fast as possible,” said Sec. Carlito Galvez, Jr., chief implementer of the National Task Force against COVID-19. “We are grateful to Cebu Pacific for joining forces with the government to support us in ensuring the success of this vaccine roll-out.”

    “We are thankful for the continued trust of the Philippine government and the DOH, and restate our intention to support our country’s fight against COVID-19 in any way we can. We look forward to picking up more vaccines from across the globe and aid in distributing across our widest domestic network,” Alexander Lao, Cebu Pacific Chief Strategy Officer.

    Upon unloading from CEB’s A330 aircraft, all vaccines were thoroughly inspected by the authorities prior to uplifting to refrigerated trucks via electric forklifts.

    On May 4, Cebu Pacific transported 6,200 COVID-19 vaccines from Manila to Puerto Princesa. Apart from Palawan, the carrier has delivered more than half a million doses of vaccines to six other cities in the country namely Bacolod, Cotabato, Legazpi, Tacloban, Tuguegarao, and Zamboanga.

    Following last week’s shipment of 500,000 Sinovac vaccines from Beijing to Manila, CEB has already transported more than 2.5 million COVID-19 doses since March 2021.

    CEB operates the widest domestic network in the Philippines covering 32 destinations, on top of its six international destinations. Its 74-strong fleet, one of the youngest in the world, includes two dedicated ATR freighters and one A330 freighter.

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  • Cebu Pacific Raises $250 Million As Gokongwei’s Airline Prepares For Travel Recovery

    Cebu Pacific Raises $250 Million As Gokongwei’s Airline Prepares For Travel Recovery

    Cebu Pacific Air, the low-cost airline controlled by Philippine tycoon Lance Gokongwei and his siblings as part of JG Summit Holdings, said it has raised $250 million through the sale of convertible bonds to the International Finance Corp. and U.S. private equity firm Indigo Partners.

    The bonds can be converted into 318.75 million common Cebu Pacific shares at 68 pesos a piece, according to a filing with the Philippine Stock Exchange. The company didn’t disclose the specific investments made by IFC through its IFC Emerging Markets Fund and by Indigo partners through its Philippine subsidiary.

    The funds will provide the carrier some much-needed capital. Cebu Pacific, just like most travel-related businesses, suffered a net loss of 22.2 billion pesos ($459.4 million) last year as passenger traffic dropped 78% to 5 million. Both international and domestic travel came to an abrupt halt as the Philippines grappled with the Covid-19 pandemic. The country is among the hardest hit by the deadly virus in Southeast Asia.

    “At Cebu Pacific Air, our focus has been on bringing the vaccine into the country and getting back to regular travel,” Gokongwei told attendees to the 2021 Forbes Asia CEO Webinar late last month.

    The funds raised from the convertible bond issue form part of the the $500 million the airline aims to raise as it restructures operations in preparation for a vaccine-led recovery in the travel industry.

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  • Everything is put in place for Cebu Pacific operator’s crucial stock offer to rescue airline

    Everything is put in place for Cebu Pacific operator’s crucial stock offer to rescue airline

    It’s all systems go for the upcoming P12.5-billion stock rights offer of Cebu Air Inc. next month.

    In a disclosure to the local bourse on Wednesday, the operator of loss-making budget carrier Cebu Pacific released the final terms for the fundraising activity meant to keep the airline afloat while lingering coronavirus fears prevent a full take-off to recovery.

    The mega stock rights offer is part of a larger recovery plan worth $500 million that the airline announced last October, which also included a private investor placement of an equal amount. It was unclear whether the balance had been raised already.

    Under the offer, existing common shareholders may buy convertible preferred shares at a conversion price of P38 apiece. Preferred shareholders are entitled to receive fixed dividends with a yield of 6% per year, but they will not have voting rights that common stockholders enjoy.

    Shares will be sold from March 3 to 9, while a tentative listing date was set on March 29. Cebu Air will sell a total of 328.9 million convertible preferred shares to investors for this crucial fundraising activity.

    A chunk of the proceeds worth P4.8 billion will serve as repayment to advances by JG Summit Philippines Ltd., its parent firm. A smaller P3.9 billion would go to aircraft operating lease payments due this year, while P3.3 billion would settle old debts.

    The balance of P384 million would be spent on “general corporate purposes,” primarily for passenger refunds in case cash generated from lackluster operations are insufficient for settlement.

    Unlike regional counterparts that handed bailouts to their cash-strapped carriers like Malaysia and Thailand, the Philippines has been reluctant in spending taxpayers’ money to rescue local airlines on the brink of financial collapse.

    Although Cebu Air is yet to release its full-year financial results, the airline has expected losses to amount to “almost P25 billion” in 2020 that, if realized, will be a reversal of the P9.12 billion in profits in 2019.

    Apart from raising new funds, Cebu Air was also forced to downsize its workforce by 75% last year due to tepid flight operations.

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