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Showing posts with label Cebu Pacific. Show all posts
Showing posts with label Cebu Pacific. Show all posts

Saturday, July 21, 2012

Stock News 2012: Cebu Pacific sets $1-billion plane purchase plan

Mactan-Cebu International AirportMactan-Cebu International Airport (Photo credit: Taralets!)
Gokongwei-led Cebu Pacific (CEB) is spending close to $1 billion next year to acquire new planes, some of which will be used for its newest move to undertake long-haul flights for the first time.

In an interview with The STAR, CEB president Lance Gokongwei also expressed confidence that they can secure air rights to fly to the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA).

Gokongwei said CEB will utilize bank financing as well as financing provided by export credit agencies for the acquisition of new aircraft – seven A320s with a list price of $85 million each and two A330s with a cost of $160 million each for a total of $915 million – for delivery next year.

This year, CEB is taking in three new A320s and for 2014, another five planes. A total of 20 A320s are being brought in.

For the A330s, CEB has placed orders for eight, two of which will be delivered in the third quarter of 2013.

In addition, the company is bringing in 30 A321 Neos which will be delivered between 2017 and 2022.

As a budget carrier flying to and from routes not exceeding four hours flying time, CEB is now preparing for long-haul flights.

Gokongwei said of the top 10 long-haul destinations, only San Francisco and Los Angeles are being serviced by Philippine Airlines (PAL).

“We are looking at the Middle East and additional destinations in the United States, the latter of course depending on when we can get back to Category 1 status,” he revealed.

Cebu Air Inc., the operator of the budget carrier, has filed a petition with the Civil Aeronautics Board for designation as the official Philippine carrier and allocation of entitlements to Oman.

However, CEB vice president for marketing and distribution Candice Iyog said the airline has asked for a deferral of the Oman air talks to next year.

“Our priority now is to get air rights for United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA),” she said.

The CAB has not yet sought a schedule with UAE and KSA aviation authorities for air talks.

But Gokongwei said air panel negotiations have been scheduled for UAE and Saudi Arabia.

CEB earlier mentioned international destinations such as Australia, Middle East, Hawaii and Guam as potential long-haul routes.

“We are exploring serving cities where large Filipino community resides. Data indicates that more than half of Filipinos deployed in these regions take multiple stops and connecting flights because no home carrier can fly them there non-stop,” Gokongwei earlier said.

CEB earlier signed a $280-million contract with global power systems company Rolls-Royce, which will provide long-term TotalCare service support for the Trent 700 engines on up to eight of CEB’s Airbus A330 aircraft.

“CEB’s fleet expansion will enable us to launch long-haul operations and serve markets outside Asia Pacific, including those in Europe, the Middle East, Oceania and the United States. The level of support offered by Rolls-Royce through the TotalCare package will further enhance our operations,” Gokongwei said.

CEB will use leased A330s to begin long-haul operations in the second half of 2013. These aircraft will represent the first Trent engines in the carrier’s fleet. The Trent 700, the only engine specifically designed for the A330, is the market leader.


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Thursday, July 19, 2012

Stock News 2012: Cebu Pacific, Zest Air seek Papua New Guinea route

English: Zest Air logoEnglish: Zest Air logo (Photo credit: Wikipedia)
Budget airlines Cebu Air Inc. of taipan John Gokongwei and Zest Airways Inc. of Amb. Alfredo Yao are seeking the go-signal from the Civil Aeronautics Board (CAB) to fly to Papua New Guinea.

The CAB is set to hear the consolidated application of Cebu Air, which operates under the Cebu Pacific brand, and Zest Air for designation as official Philippine carrier and allocation of entitlements to Papua New Guinea on July 24.

The low cost carriers are seeking 540 seat entitlements each.

The CAB is mandated by Republic Act 776, as amended by Presidential Decree 1462, to regulate, promote, and develop the economic aspect of air transportation in the Philippines and ensure that existing policies are adapted to the present and future air commerce of the Philippines.

The law also vests supervision, jurisdiction, and control over all carriers engaged in air commerce in the Philippines as well as their property, equipment, franchise and facilities.

“Pursuant to the provisions under RA 776, as amended, notice is hereby given that Cebu Pacific and Zest Air have filed with the CAB their respective petitions for designation as official Philippine carrier and allocation of entitlements to Papua New Guinea under Route 1 in accordance to the existing Confidential Memorandum of Understanding,” CAB hearing officer Maria Cecilia Cawilan stated in a notice of hearing.

The Philippines and Papua New Guinea agreed to increase flight entitlements between the two countries in August last year. The amended air services agreement increased entitlements to 600 seats per week from the previous 150 seat per week.

Likewise, a new route was also agreed for all airports outside Manila at 1,500 seats per week to help meet the growing tourism between the Philippines and Papua New Guinea.

Cebu Pacific currently operates 10 Airbus A319, 20 Airbus A320 and eight ATR-72 500 aircraft. Its fleet of 38 aircraft – with an average age of 3.6 years – is one of the youngest aircraft fleets in Asia.

On the other hand, ZestAir was established in September 2008 after the former Asian Spirit was taken over by the Yao Group through AMY Holdings Corp.


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Wednesday, May 16, 2012

Stock News 2012: JG Summit profit soars 77% to P4.91 billion

Universal RobinaUniversal Robina (Photo credit: Wikipedia)
JG Summit Holdings Inc., the investment vehicle of taipan John Gokongwei, said its net earnings grew 76.7 percent in the first quarter to P4.91 billion, boosted by a dividend income from its investment in Philippine Long Distance Telephone Co. (PLDT) as well as higher mark-to-market gains.

Consolidated revenues went up 13.9 percent to P33.48 billion, mainly driven by the strong performance across all business units, the company said in a statement.

The food business contributed P18.2 billion to total revenues, up from P16.74 billion. The airline business, through Cebu Pacific, chipped in P9.34 billion while property pumped in P3.35 billion. Petrochemicals contributed P1.38 billion while banking pitched in P709.96 million.

Dividend income from its PLDT investment amounted to P1.9 billion.

Core earnings before tax increased 49.9 percent to P5.89 billion while the group’s EBITDA (earnings before interest, taxes, depreciation and amortization) was flat at P6.48 billion.

Equity in net earnings of associates amounted to P499.76 million, down 5.6 percent from the previous level due to reduced income from the group’s investment in UIC Ltd.

Consolidated cost of sales and services climbed 17 percent P23.77 billion due to higher aviation fuel expenses incurred by its airline business.

However, the company booked P680.28 million in gains from its investment in the capital market, 51.9 percent higher than the previous level.

Food manufacturing arm Universal Robina Corp. reported a 36.5 percent growth in net income for the first half of its fiscal year ending September to P4.48 billion. Net sales improved 6.6 percent to P35.487 billion.

URC’s branded consumer foods (BCF) segment, including the packaging division, registered sales of P28.029 billion, up 13.1 percent. Of the total, the domestic foods business grew faster at 13.7 percent to P16.59 billion, largely driven by the be-verage division which jumped 41.5 percent on account of strong sales acceptance for its new product, Great Taste White Coffee.

For the snack foods division, snacks and biscuits exhibited double-digit growth.

http://www.philstar.com/Article.aspx?articleId=807650&publicationSubCategoryId=66

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Saturday, October 29, 2011

Stock News 2011: CEB passenger traffic up 30%

Cebu Pacific Airbus A???Image via Wikipedia
Cebu Pacific (CEB) has posted a 30 percent growth in passenger traffic between the Philippines and ASEAN destinations in the third quarter of 2011 compared to the same period last year.

From July to September 2011, CEB flew close to 286,000 passengers to and from ASEAN destinations with an average load factor of 81 percent.

“There are 10 member states in the Association of Southeast Asian Nations (ASEAN), and we look forward to expanding Cebu Pacific’s network further in this region. We believe our neighboring Southeast Asian countries can benefit greatly from direct access and additional connectivity to the Philippines, especially with our trademark low fares,” said CEB VP for Marketing and Distribution Candice Iyog.

The airline took delivery of one brand-new Airbus A320 last October 26, 2011, and will take another A320 in December 2011. This provides additional capacity for network, flight and route expansion.

“CEB’s combination of low fares, fun service, new planes and extensive network stimulates demand for tourism and trade, and grows the market. We want to continue doing this for the ASEAN region where we fly the most passengers to and from the Philippines,” she added.

http://mb.com.ph/articles/339354/ceb-passenger-traffic-30


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Tuesday, October 26, 2010

Stock News 2010: Cebu Air Jumps 6.8% on Listing Debut, Raises Total of $611 Million from IPO

Logo of 'Let's make Cebu Pacific better!'Image via Wikipedia
MANILA, Philippines – Budget airline Cebu Air Inc. jumped as much as 6.8 percent on its debut Tuesday, as the country's largest public offering rode on the back of a broader market that hit a fresh record high.

The airline, a unit of conglomerate JG Summit Holdings Corp and the second biggest Asian budget carrier by market value, raised $611 million in its IPO including a greenshoe option, making it a record amount in dollar terms for a Philippine listing.

Cebu Air's debut takes place amid a boom in IPOs in Asia as well as strong foreign demand for high-yielding emerging markets such as the Philippines.

Upbeat sentiment following presidential elections in May have helped lift the index about 40 percent this year and it is the second best performer in Southeast Asia after Indonesia.

This backdrop bodes well for upcoming listings in the Philippines, analysts said. Philippine miner Nickel Asia plans to raise $162 million in an IPO next month.

''Having launched successfully, the ones apprehensive on the sidelines are now emboldened to come in,'' said Alejandro Yu, president of R.S. Lim and Company, a local stock brokerage.

Cebu Air's shares opened at 132 pesos after a ceremony that included flight attendants dancing the flight safety routine to a Lady Gaga pop song on the stock exchange trading floor, peppered with tube balloons carrying the airline's yellow orange colours. The safety routine dance was a big hit on YouTube earlier this month.

The stock rose as high as 133.5 pesos, before closing at 133 pesos. The airline had sold about 215 million shares at its IPO at 125 pesos each, Cebu Air's parent said late on Monday.

At Tuesday's close, Cebu Pacific was valued at nearly 97 billion pesos or $2.2 billion, larger than rival Tiger Airways at about $723 million but smaller than Malaysia's AirAsia, valued at about $2.3 billion.

Cebu Air CEO and President Lance Gokongwei said he expects the company's international business to overtake its domestic operations in four to five years as it seeks to increase its international capacity by 25 percent yearly via new foreign routes and flight frequencies.


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Thursday, September 16, 2010

Stock News 2010: PSE sees Cebu Air listing next month, cites bull market

Cebu Pacific ATRImage by georgeparrilla via Flickr
The Philippine Stock Exchange expects Cebu Air Inc. to push through with its P32.2-billion initial public offering next month given the stellar performance of the local and overseas markets.

“There are no other issues why they should not go with it this time,” PSE chairman Hans Sicat told reporters Wednesday.

Cebu Air, which operates Cebu Pacific, will offer 214.632 million shares, consisting of 30.66 million in primary shares, 155.97 million in secondary stocks and up to 27.99 million in optional securities to cover overallotment. It will sell the shares at a maximum price of P150 apiece.

Cebu Air tapped Citigroup Global Markets Ltd., Deutsche Bank AG (Hong Kong Branch) and J.P. Morgan Securities Ltd. as joint global coordinators and international lead managers and ATR Kim Eng Capital Partners Inc. as the local underwriter for the offering.


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