Philippine budget airline Cebu Pacific on Thursday said it will be expanding its fleet once again and purchasing 14 ATR-72-500 planes which will specifically cater to the “Boracay market.”
The acquisition will cost the company more than $250 million, and will increase its fleet number to 46 aircraft. All of Cebu Pacific’s current aircraft are Airbus 320s and 319s.
Only small carriers like Sea Air and Asian Spirit have direct flights to Caticlan in Aklan, which is near Boracay, the country’s most popular beach destination.
“So [now] ATR will allow us to enter Boracay [direct] via Caticlan,” Cebu Pacific president Lance Gokongwei said.
He said that of the 70 airports in the Philippines, only 25 can accommodate an Airbus, Cebu Pacific’s regular plane. The new planes, Gokongwei said, have been purchased specifically for Boracay and airports incapable of accommodating the size of an Airbus.
Gokongwei said that they plan to finance the acquisition through internal funds, external borrowings and possibly proceeds from an initial public offering scheduled within the year.
The first two ATR72 aircraft are expected to arrive in early 2008. The delivery will be completed by 2013.
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