Pasay—(PHStocks)—Cebu Air Inc. (PSE: CEB) announced its proposed transaction to sell ten Airbus A319 aircraft to Allegiant Travel Company (NASDAQ: ALGT) has been terminated as the parties were not able to reach an agreement on certain terms of the transaction. The potential transaction was made public on July 30, 2012 after the signing of the letter of intent.
“It is unfortunate that we were not able to finalize the sale agreement. We have been unable to agree on certain conditions that would have made the transaction workable, both operationally and financially,” says Lance Y. Gokongwei, President and CEO of Cebu Pacific. “Without the A319 sale, our current fleet expansion plan, which includes delivery of 8 Airbus A320 aircraft over the next 2 years will enable us to grow seat capacity by an average of 10-15 percent per year, which is in line with our demand outlook for air travel in the Philippines, allowing Cebu Pacific the flexibility to accommodate the growing demand for air travel in the Philippines.”