Cebu Pacific, SIAEC sign joint-venture accord

Cebu Pacific (CEB) and SIA Engineering Company Limited (SIAEC), a unit of Singapore Airlines recently signed a joint venture agreement for the maintenance of CEB’s new fleet of Airbus aircraft and its existing fleet of DC9’s and B757’s.

CEB President and CEO Lance Gokongwei and SIAEC Chief Executive Officer William Tan signed the agreement at the Shangri-La Hotel in Makati.

The company will be owned 51 percent by the SIA Engineering Ltd. and 49 percent by Cebu Pacific Air.

Cebu Pacific CEO Lance Gokongwei said, "Aviation Partnership (Philippines) Corporation (A+), our joint venture with SIAEC, further strengthens our confidence in our fleet of new Airbus aircraft arriving in May 2005. With SIAEC, providing the total airframe support and GE providing total engine support, plus our local team – we have a world-class group which will add significant merit to the Philippine aviation industry by increasing the efficiency of our operations."

"SIAEc’s worldwide experience and support capabilities will certainly help us live by our mission to bring people together through an affordable and reliable mode of travel. This will also allow A+ to grow its business base to attract additional third party customers, which will add more employment opportunities to our country. In this way, we hope to do our part in uplifting tourism in the Philippines and strengthening our economy," said Gokongwei.

Tan said: "We are delighted that Cebu Pacific Air, a highly prolific and progressive airline in the Asia-Pacific, is partnering us in our first foray into the Philippines. By capitalizing on each other’s strengths and expertise, we will be able to add greater value to the aviation industry in the Philippines."

This is the third line and light maintenance joint venture engaged by SIAEC outside of Singapore, besides Pan Asia Pacific Aviation Services in China and PT Jas Aero Engineering Services in Indonesia.

The agreement formalized a memorandum of understanding signed last Dec. 17, 2004 that would provide line maintenance, technical ramp handling services, and light maintenance checks at 13 airports that CEB serves.

CEB bought 12 brand-new A319s for delivery from September 2005 to early 2007 and is leasing two A320s which are due by the second quarter of this year. The $670-million refleeting would make the CEB fleet the youngest in the Philippines and one of the youngest in the region.