Cebu Air also announced it was selling its 35-percent stake in SIA Engineering (Philippines) Corp. to SIA Engineering Co. Ltd. —SIAEC.COM.SG
Budget airline operator Cebu Air Inc. is buying out its Singaporean partner in their aircraft repair and maintenance venture amid the business downturn caused by the COVID-19 pandemic.
Cebu Air, operator of Cebu Pacific, said in a stock exchange filing that it was buying the 51 percent stake of SIA Engineering Co. Ltd. in Aviation Partnership (Philippines) Corp. (APPC).
APPC is a key player in the maintenance, repair and overhaul business in the aviation industry.
It provides services such as line maintenance, light aircraft checks, technical ramp handling to Cebu Pacific and other carriers with hubs in Manila, Cebu, Davao and Clark apart from secondary airports in the Philippines.
Cebu Air, which will gain 100 percent ownership of APPC, said the deal was worth $5.6 million.
Despite the downturn in aviation, Cebu Pacific said the takeover of APPC would lead to “significant operational efficiencies and optimization of resources for an even stronger competitive advantage.”
This is part of a broader restructuring of the company’s partnership with SIA Engineering.
In a separate filing, Cebu Air announced the sale of its 35-percent stake in SIA Engineering (Philippines) Corp. to SIA Engineering Co. Ltd. in a transaction worth $7.74 million.
Following the transaction, Cebu Air will have no more equity interest in SIA Engineering Philippines, a joint venture established in 2008. INQ