Cebu sells old aircraft to Las Vegas airline
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Budget carrier Cebu Pacific is discarding nearly a third of its fleet and replacing its old planes with bigger and more efficient aircraft, as the airline continues to find ways to cut costs.
In a disclosure, Cebu Pacific operator Cebu Air Inc. said it would sell 10 of its 150-seater Airbus A319 aircraft to Nasdaq-listed Allegiant Travel, a low-cost airline based in Las Vegas.
The A319s are the oldest and smallest planes in Cebu Pacific’s fleet. The airline also operates eight ATR turbo propeller planes that are used mainly for inter-island flights.
“While they [the A319s] have served us well for the last six years as we have grown our business and developed new markets, the time is right to trade up to bigger, brand-new Airbus A320 aircraft,” Cebu Air president and CEO Lance Gokongwei told the bourse.
