JG Summit willing to partner with SMC for $10-B airport project

MANILA, Philippines - JG Summit Holdings Inc. of taipan John L. Gokongwei Jr. is willing to partner with diversified conglomerate San Miguel Corp. (SMC) for the proposed $10-billion airport project.

JG Summit president Lance Gokongwei said the proposed international gateway of SMC would help address the problem of congestion in three-decade old NAIA.

“I think it’s a good suggestion. Clearly the limiting factor now is capacity and any plan to increase access to a capital city like Manila should be thoroughly considered,” Gokongwei said.

JG Summit owns listed budget airline Cebu Air Inc. (Cebu Pacific) which is in a middle of a $4-billion refleeting program aimed at acquiring close to 50 brand new Airbus aircraft.

Cebu Pacific now operates a fleet of 52 aircraft consisting of 10 Airbus A319, 30 A320, four A330, and eight ATR-72 500 aircraft and is scheduled to take delivery of 11 more Airbus A320, 30 A321neo, and two Airbus A330 aircraft between this year and 2021.

Gokongwei said the holding firm is likewise interested in putting up a low cost carrier passenger terminal building within SMC’s proposed $10-billion international airport.

“We will certainly consider that if we were approached,” he stressed.

Cebu Pacific competes directly with national flag carrier Philippine Airlines Inc. (PAL). PAL is jointly owned by taipan Lucio Tan and SMC and is in the middle of a massive fleet renewal program to acquire 100 brand new aircraft where it has placed a $9.5 billion order for 65 Airbus aircraft.

Earlier, SMC and PAL president Ramon S. Ang said the diversified conglomerate would invite Philippine companies including Ayala Corp., the SM Group of retail and banking magnate Henry Sy, and even Cebu Pacific to join the airport project.