MANILA, Philippines - Budget carrier Cebu Pacific's sale of 10 Airbus A319 aircraft to Allegiant Travel Company has been cancelled.
The deal was terminated as both parties were not able to reach an agreement on certain terms of the transaction, Cebu Pacific told the Philippines Stock Exchange in a disclosure on Wednesday, January 2.
“It is unfortunate that we were not able to finalize the sale agreement. We have been unable to agree on certain conditions that would have made the transaction workable, both operationally and financially,” said Lance Gokongwei, President and CEO of the company.
The planned sale was made public on July 30, 2012, when Cebu Pacific said it had decided to upgrade to bigger aircraft such as the A320 and A330.
“Without the A319 sale, our current fleet expansion plan, which includes delivery of 8 Airbus A320 aircraft over the next two years will enable us to grow seat capacity by an average of 10% to 15% per year, which is in line with our demand outlook for air travel in the Philippines, allowing Cebu Pacific the flexibility to accommodate the growing demand for air travel in the Philippines,” said Gokongwei.
The new aircraft will be mostly allocated for the Middle East routes, where 2.3 million Filipinos are working.
The year 2012 saw Cebu Pacific expanding its fleet and route map aggressively, opening 10 new domestic routes. The carrier expects to begin long-haul flights by the third quarter of 2013 as it pushes to bag seat entitlements in bilateral air negotiations. – Rappler.com
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