Cebu Pacific inks 10-year finance deal with StanChart

MANILA, Philippines - Standard Chartered Bank has closed a long-term multi-million dollar finance lease transaction with Cebu Air Inc. (CEB), the Philippines’ leading low-cost carrier owned by the Gokongwei family.

Simon Perkins, StanChart managing director and chief commercial officer of aviation finance, said the 10-year financing facility for two Airbus 320-200 aircraft was arranged and funded exclusively by the bank.

Perkins said the two aircraft were delivered just one month apart, in December 2013 and January 2014, and will be critical to CEB’s fleet expansion program.

CEB’s expansion program aims to stimulate growth in the domestic market while pursuing greater market share in the international market.

“Cebu Air is an important long-term client of StanChart. This transaction, along with other products and facilities the airline has with us, demonstrates our capabilities and commitment to partnering with core clients in their strategic growth ambitions. We look forward to staying close to Cebu Air and supporting them in many more years to come as they take their business forward,” Perkins said.

For his part, CEB president and CEO Lance Gokongwei said: “As we continue to expand our route network in North Asia, ASEAN and the Middle East, we look forward to working closely with our partners, particularly on our fleet expansion plans.”

“We are glad to be a partner of Standard Chartered. Their continuous support allows CEB to offer its trademark low fares to even more travellers around the globe,” he said.

CEB, the operator of the Cebu Pacific brand, is the largest carrier in the Philippine air transportation industry, offering its low-cost services to more destinations and routes with higher flight frequency within the Philippines than any other airline.

The airline currently operates a fleet of 50 aircraft comprising 10 Airbus A319, 29 Airbus A320, three Airbus A330 and eight ATR-72 500 aircraft.

Between 2014 and 2021, CEB will take delivery of 13 more Airbus A320, 30 Airbus A321neo and three Airbus A330 aircraft.

StanChart, on the other hand, is a leading international banking group operating for over 150 years in some of the world’s most dynamic markets and earns around 90 percent of its income and profits in Asia, Africa and the Middle East.