MANILA -- The operator of Philippine budget carrier Cebu Pacific will acquire a local boutique airline, seeking to expand its flights to the archipelago nation's tourism hot spots as travel demand recovers after the pandemic.
In a statement on Monday, Cebu Air said it has agreed to buy AirSwift for 1.75 billion pesos ($30.8 million) from ALI Capital, a unit of conglomerate Ayala Corp.
AirSwift, which has a fleet of five planes, operates direct flights from Manila to El Nido in Palawan, a world-renowned tourist destination for its white-sand beaches, and other provinces like Boracay, Cebu and Bohol.
Cebu Pacific currently flies to 26 international and 35 domestic destinations. By adding the AirSwift flights to its network, the airline hopes to lure more tourists from abroad and boost its presence in the local travel sector.
"We are excited to play our part in increasing accessibility to local destinations that have high potential and are world-renowned for having some of the best beaches in the world," said President and Chief Commercial Officer Xander Lao.
The acquisition "will contribute to growth opportunities for local communities and businesses in key tourist destinations," Lao said.
The company said there will be no changes in AirSwift's flight schedules and service after the acquisition.
The development came months after Cebu Pacific expanded its fleet by purchasing 152 aircraft from Airbus and Pratt & Whitney, which is considered the largest aircraft purchase in Philippine aviation history.
The Philippines' aviation sector is still recovering from pandemic woes, which severely limited its flights due to mobility restrictions to contain the spread of COVID-19. Cebu Pacific's net income skidded by more than 50% to 1.31 billion pesos in the second quarter, owing to higher expenses.
