Cebu Pacific reviews long-term fleet plans

Cebu Air, the parent company of Cebu Pacific, is reviewing its long-term fleet plans, and has begun discussions with suppliers “to establish flexibility to adapt to current events”. In line with anticpated lower aircraft utilisation in future, the company will also defer previously planned aircraft capital expenditures, it said in a 15 May stock exchange disclosure to allay media reports about its financial health. Captial expenditure will be reduced from Ps28b ($552m) to Ps13b, and non-disrectionary spending cut. “We have likewise started discussions with government, seeking support through grants and loans alongside fee waivers and regulatory relief,” it says. The company says that compared with other low-cost carriers, its fleet growth plan was already conservative, at 8-9% over five years.<br/>