Coronavirus havoc forces Gokongweis’ Cebu Pacific to rethink long-term plans

In a stock exchange filing in response to a Philippine Daily Inquirer report, Cebu Pacific said it has trimmed its capital budget for the year by more than half to P13 billion from P28 billion as it decided to delay spending related to new aircraft.

Cebu Pacific said the deferral was in line with efforts to reduce costs and preserve cash liquidity and flexibility.

“CEB is also undertaking an overall review of our long-term fleet plan, notwithstanding that CEB already has a very conservative fleet growth plan compared to other low-cost carriers in the industry, with a five- year estimated growth of only 8-9%,” it said.

Based on Cebu Pacific’s long term fleet plan as of the end of the first quarter, three ATR 72-600 are slated for delivery from 2021 to 2022; 27 A321 Neo between 2020 and 2023, five A230 Neo from 2020 to 2025, 16 A330 Neo from 2021 to 2025 and 10 A321 XLR from 2025 to 2026.

Cebu Pacific’s fleet is currently composed of 75 aircraft, including seven A321CEO, 30 Ai A320, eight A330, seven ATR 72-500, 12 ATR 72-600 and an ATR cargo freighter.

The airline has already begun discussions with suppliers on its overall fleet plan and schedule to adapt to the difficult business environment.

Apart from this, Cebu Pacific has started discussions with the government, seeking support through grants and loans alongside fee waivers and regulatory relief.

As of this month, the no-frills airlines had already cancelled over 26,400 flights. due to the COVID-19 pandemic. In the first quarter this year, Cebu Pacific’s total flights flown declined by 15% while the number of passengers transported fell 17% to 4.4 million.

As a result, Cebu Pacific suffered a net loss of P1.18 billion, a reversal of the P3.36 billion profit earned in the same period last year. Revenues plunged 25% to P15.9 billion.

Converge backs infrastructure sharing to lower costs

Bilyonaryo Dennis Anthony Uy’s Converge ICT Solutions Inc. is supporting a proposal that allows telcos or internet service providers to share the cost of installation of underground pipes for telecommunication cables whenever new road infrastructure is built.

Converge backs infrastructure sharing to lower costs

Bilyonaryo Dennis Anthony Uy’s Converge ICT Solutions Inc. is supporting a proposal that allows telcos or internet service providers to share the cost of installation of underground pipes for telecommunication cables whenever new road infrastructure is built.

Fraud trial opens of former Swedbank CEO

Former chief executive of Swedish bank Swedbank, Birgitte Bonnesen, went on trial in Stockholm on Tuesday to answer fraud and market manipulation charges, three years after a money laundering scandal implicating her bank erupted.