Cebu Pacific to invest P3.5 billion on new aircraft

MANILA, Philippines -  Gokongwei-led Cebu Air Inc. (CAI) will be investing P3.5 billion for the purchase of two airplanes and the lease of another two which will be used before the end of the year either for domestic or international flights.

The Board of Investments (BOI), an attached agency of the Department of Trade and Industry (DTI), has given income tax holidays  to both the purchase and lease of the aircraft by the budget carrier.

The airline company applied for registration under the 2011 Investment Priorities Plan (IPP) as a new operator of air transport service because it bought and leased four new airplanes.

Trade Undersecretary Cristino L. Panlilio said that the combined investment for the four planes is around P3.5 billion. The investment for the two aircraft under the lease purchase agreement was given a pioneer status.

Panlilio said that since the airplanes are all A320s, then it may be used both for domestic and international flights.

Cebu Air Inc. currently owns 33 aircraft which are all BOI registered. The firm intends to acquire A320s that will be added to the fleet at the end of 2011 since the four aircraft have different delivery dates and acquisition, the firm opted to register the aircraft individually.

CAI is a 100 percent Filipino company operating under the airline Cebu Pacific. Cebu Pacific is a wholly owned subsidiary of CP Holdings Inc. The parent company of CP Holdings Inc is  JG Summit Holdings Inc.