5 July 2018
Parent Company CEBU AIR, Inc., the listed operator of Cebu Pacific, said it sold its majority stake in its ground-handling service business., the Company Announced Monday.
Cebu Air said it has sold 60% of its shares in 1Aviation Ground handling Services Corp. to the Philippine Airport Ground Support Solutions, Inc. (PAGSS), a company led by Jefferson G. Cheng.
Cebu Pacific had previously tapped MIASCOR Ground Handling Corp. for Ground handling Services at the Ninoy Aquino International Airport (NAIA) before Manila International Airport Authority (MIAA) revoked the contract of MIASCOR after several reports of luggage theft involving the latter’s employees.
On February 2018, the Company incorporated 1Aviation Groundhandling Services Corporation to perform ground handling operations at Ninoy Aquino International Airport (NAIA) in partnership with Mr. Cheng's Philippine Airport Ground Support Solutions, Inc. (PAGSS), which license to operate was subsequently approved in March. MIAA’s contract with MIASCOR ended on April 21.
PAGSS is also a ground-handling service company based at the Ninoy Aquino International Airport (NAIA). It currently works with several airlines, such as China Airlines, Turkish Airlines, Cathay Pacific, EVA Air, Singapore Airlines and Etihad.
The sale absorbs 1Aviation operation into PAGSS divesting Cebu Air interest in ground handling operations.