Property giant Ayala Land Inc. (ALI) is talking to other domestic airline companies for the sale of its investment in AirSWIFT, although negotiations with Cebu Pacific Air is “progressing.”
In an interview, ALI Executive Director and Head of Leasing and Hospitality Mariana Zobel de Ayala said that, while they are talking to Cebu Pacific, “it’s not exclusive in the sense that we are entertaining several (potential buyers).”
While declining to identify the other airlines they are in discussions with, she pointed out that “there are only so many local airlines.” Among the country’s biggest carriers are Philippine Airlines and Air Asia Philippines.
“When we started this process (of selling AirSWIFT), our objective really was, what would be the best customer experience, so we thought it would be best to cast a wide net and that’s how we started the process. Right now, we are progressing with our talks with Cebu Pacific,” she added.
Zobel said they intend to sell the airline as soon as they can come to terms with a buyer noting that the terms have not been finalized so she cannot confirm if ALI will be selling 100 percent or keep a minority stake in AirSWIFT.
“But the principle is really that our core competency is in developing land and land-related products. So we hope to continue focusing on that and ensure that we can deliver the right experience by partnering with a group whose focus is aviation,” she explained.
ALI Chief Finance Officer Augusto Bengzon said they may have something more definitive about the planned divestment in a month’s time.
He noted that ALI will not be selling its airport facilities and will continue to own the airport in their Lio estate in Palawan.
“We still own the airport there and we would want them to continue, or whoever ends up purchasing Airswift, would need to fly to service our properties, our resorts in Palawan. It’s one of the requirements,” Bengzon stressed.
Last July 22, Cebu Pacific confirmed that it is “currently engaged in exploratory talks with Ayala Land Inc. but nothing definitive has been agreed upon.”
AirSWIFT flies from Clark and Manila to resort destinations Coron, El Nido, Romblon, Boracay, Sicogon, Cebu and Panglao.
“Cebu Pacific is always on the lookout for opportunities to grow and expand its network, including partnership with other parties,” it noted.
The carrier added that “CEB’s track record of success means other businesses do prefer partnering with Cebu Pacific when it comes to aviation initiatives.
“Should any opportunity move from a proposal to a firm business undertaking, we will make the proper disclosures. We also endeavor that whatever business proposals we carefully evaluate, we never let it become a distraction to our core business,” said the Gokongwei-owned airline.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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