Cebu Air gets perks for aircraft

Gokongwei-owned Cebu Air Inc. is investing P3.5 billion to beef up its fleet of aircraft for the rest of the year.

Trade Undersecretary Cristino Panlilio said the company has obtained incentives from the Board of Investments (BOI) for the acquisition of four A320s set for commercial operations this year.

Panlilio said the company registered the four planes individually since they have different delivery dates and acquisition schemes.

Panlilio said the BOI board granted pioneer status to the two planes under lease purchase, entitling them to six years in income tax holiday (ITH).

He said the other two, which are for the airline’s leasing operation, were registered as non-pioneer with ITH of four years.

"The aircraft can be used both for domestic and international flights and will be ready from November to December," Panlilio said.

The project qualified for registration under the 2011 Investment Priorities Plan as new operator of air transport service.

Cebu Air, a 100-percent Filipino company operating under the airline Cebu Pacific, is a wholly owned subsidiary of CP Holdings Inc. whose parent company is JG Summit Holdings Inc. 

Cebu Air owns 33 aircraft all registered with the BOI. The firm has begun acquiring A320s that will be added to the fleet at the end of 2011.

The four additional Airbuses are: A320 No.16, which obtained non-pioneer incentives with delivery and commercial operation in September 2011 to be acquired under operating lease scheme; A320 No.17, pioneer status for delivery and commercial operation by September 2011 to be acquired under operating lease; A320 No.18, non-pioneer, for delivery and commercial operation this month under an operating lease arrangement and A320 No.19, pioneer incentives and for delivery and commercial operation in December 2011 under finance lease.

Cebu Air, said to be the airline with the youngest fleet – an average of 3.2 years as of December 2010 – operates from the NAIA terminal 3 and is the country’s leading domestic carrier, serving the most domestic destinations with the largest number flights and routes.

Cebu Pacific flies to 33 domestic destinations and to 16 international destinations in 10 countries.

Source: Malaya Business Insight By: IRMA ISIP