Cebu Air, Inc., the listed operator of Cebu Pacific, said it sold its majority stake in its ground-handling service subsidiary.
In a disclosure to the stock exchange, the Gokongwei-led company said it has sold 60 per cent of its shares in 1Aviation Groundhandling Services Corp. to the Philippine Airport Ground Support Solutions, Inc. (PAGSS), led by Jefferson G. Cheng, stated reports.
“Lance Y. Gokongwei, Chairman and President of Cebu Air, Inc., welcomed this development as this investment by Mr. Cheng and PAGSS brings decades of experience in ground handling for the benefit of airline passengers,” the company said.
PAGSS is a ground-handling service company based at the Ninoy Aquino International Airport (NAIA). It currently works with several airlines, such as Cathay Pacific, EVA Air, Singapore Airlines and Etihad.
Cebu Pacific created 1Aviation in March after Manila International Airport Authority did not renew the contract of MIASCOR Ground Handling Corp. due to incidents of luggage theft involving the latter’s employees. MIAA’s contract with MIASCOR ended on April 21.