Covid19 Fallout
27 October 2020
Low cost carrier Cebu Pacific (CEB) and Singapore based-SIA Engineering (SIAEC) is dissolving their partnership in the Philippines.
CEB has bought out its partner Singapore's SIA Engineering Company Ltd, both from Aviation Partnership Philippines Corporation (APPC), and SIA Engineering Philippines Corporation (SIAEP).
SIA Engineering holds 51% share in APPC while CEB holds 49%. Meanwhile, SIAEC owns 65% of SIAEP while CEB owns 35%.
APPC is CEB line maintenance provider for its Airbus and ATR fleets in Manila, Cebu, Davao and Clark while SIAEP is based in Clark providing airframe maintenance, repair, de-lease checks, cabin retrofits and overhaul services for Boeing 737s, Airbus A320 and A330 aircraft, as well as line maintenance at Clark.
The airline said the acquisition cost of APPC pegged at $5.61 million cash to dissolve the joint venture, is to "closely align its line maintenance operations and strategic objectives with its network and service requirements".
At the same time, SIAEC is acquiring CEB’s 35% stake in SIAEP for $7.74 million cash and states that this will be accounted for as an equity transaction.
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