Airline awaits delivery of 15 more planes

DUBBED as the country's leading domestic airline, Cebu Pacific aims to further boost its fleet in the next five years, investing heavily on new aircraft, the latest of which is the purchase of 15 brand new Airbus A320s.

The planes are set for delivery in the next five years.

A company officer, who spoke on condition of anonymity for not being in the position to discuss the details, said the investment in relatively small aircraft is in line with the company's direction in the next few years -- expansion only in Southeast Asia, China, Korea, and Japan.

"Long haul flights to the United States or to the Middle East are not yet part of our immediate plans," the source said.

The addition of the 15 new aircraft will further boost the airline's fleet, which is currently composed of 21 Airbus A320s and eight turbo propeller aircrafts.

Also, Cebu Pacific will be venturing into an initial public offering for its shares to raise more than P22.3 billion worth of funds for its heavy investment in aircrafts.

Reports have it that 235 million shares will be offered at an initial price of P90 per share with maximum price of P95 per share.

Of the total shares, 164.89 million will be sold to international investors while the remaining 47.11 million shares will be sold to local ones.

Another 35.3 million common shares have been earmarked to cover over allotment.

JP Morgan Securities and Deutsche Bank are lead managers for the international offer while ATR KimEng is the domestic underwriter.

Currently, Cebu Pacific flies to 33 domestic destinations and in 14 international destinations within Southeast Asia, China , Korea , and Japan.

Davao City is connected by Cebu Pacific with direct flights to Manila at six times daily, to Cebu with 26 flights in a week and to Zamboanga and Iloilo with a single flight daily.

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