Standard Chartered Bank announced on Thursday that it has closed a multimillion-dollar finance lease transaction with low-cost carrier Cebu Air Inc.
In a statement, Standard Chartered said it has closed a multimillion-dollar finance lease transaction for two Airbus 320-200 aircraft with Cebu Air Inc.
The 10-year financing facility for the aircraft was arranged and funded exclusively by Standard Chartered. The two aircraft were delivered just one month apart, in December 2013 and January 2014, and will be critical to Cebu Air’s fleet expansion program, which aims to stimulate growth in the domestic market while pursuing greater market share in the international market.
“Cebu Air is an important long-term client of Standard Chartered. This transaction, along with other products and facilities the airline has with us, demonstrates our capabilities and commitment to partnering with core clients in their strategic growth ambitions,” said Simon Perkins, managing director and chief commercial officer of Aviation Finance for Standard Chartered Bank.
“We look forward to staying close to Cebu Air and supporting them in many more years to come as they take their business forward,” he added.
Meanwhile, Lance Gokongwei, president and chief executive officer of Cebu Pacific Air, said that the transaction with Standard Chartered Bank is part of their company’s continued route network expansion in North Asia, Southeast Asia and the Middle East.
“We look forward to working closely with our partners, particularly on our fleet expansion plans. We are glad to be a partner of Standard Chartered. Their continuous support allows CEB [Cebu Pacific] to offer its trademark low fares to even more travelers around the globe,” Gokongwei said.
Cebu Air Inc. is the largest carrier in the Philippine air transportation industry, and offers low-cost services to more destinations and routes with higher flight frequency within the Philippines than any other airline.
The airline currently operates a fleet of 50 aircraft comprising 10 Airbus A319, 29 Airbus A320, three Airbus A330 and eight ATR-72 500 aircraft. Between 2014 and 2021, Cebu Pacific will take delivery of 13 more Airbus A320, 30 Airbus A321neo and three Airbus A330 aircraft.
Through a previous transaction in 2009, Cebu Air acquired an Airbus 320-200 under an operating lease arrangement with Standard Chartered.