30 October 2024
Low-cost carrier Cebu
Pacific (CEB) has taken back majority control of 1Aviation Groundhandling Services Corp. that provides ground handling services to the airline and its subsidiaries operating several airports across the country.
In a
disclosure to the Philippine Stock Exchange, Cebu Pacific’s parent Cebu
Air Inc. said it has entered into a debt-to-equity conversion with
1Aviation Groundhandling Services Corp. to recapitalize the company to handle the growing demands of the airline.
The
swap will wipe out previous advances and loans issued by Cebu Air to
1Aviation, amounting to P113 million, by converting them into equity, as
approved by shareholders.
After recapitalization, Cheng
and PAGSS will control the remaining 40 percent in 1Aviation
in replacement of the P34.23 million owed to Cheng and P2.78 million
borrowed from PAGSS.
The airline intends to integrate 1Aviation’s services into Cebu Pacific’s to cut operational costs and enhance service quality on ground handling and logistical support.
1Aviation, founded in 2018, operates in 34 airports, including the Ninoy Aquino International Airport, through its 6,224 employees.
