Business

Cebu Air takes full control of MRO service provider

Gokongwei-led Cebu Air Inc. is buying out its partner’s 51% stake in Aviation Partnership Philippines Corp. (APPC), a key player in the maintenance, repair and overhaul business in the aviation industry.

Gokongwei-led Cebu Air Inc. is buying out its partner’s 51% stake in Aviation Partnership Philippines Corp. (APPC), a key player in the maintenance, repair and overhaul business in the aviation industry.

In a stock exchange filing, Cebu Air said it signed a deal to acquire Sia Engineering’s entire holdings in APPC for $6.19 each share or a total of $5.61 million, putting an end to their partnership formed in 2005.

Cebu Air said the acquisition was in line with its strategy to “more closely align its line maintenance operations and strategic objectives with its network and service requirements, for significant operational efficiencies and optimization of resources for an even stronger competitive advantage.”

APPC provides line maintenance, light aircraft checks, technical ramp handling and other MRO services in Manila, Cebu, Davao and Clark, as well as other secondary airports in the Philippines.

The consideration was arrived at after arm’s length negotiations on a willing-buyer, willing-seller basis and took into account the net asset value and financial performance of APPC, Cebu Air said.

At the same time, Cebu Air announced it was divesting from SIA Engineering Philippines Corp. (SIAEPC) for $7.74 million to streamline its fleet management.

Located in Clark, SIEPC has three hangars and provides heavy maintenance aircraft checks including backshop support and line maintenance services.

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