CEBU AIR, Inc., listed operator of budget carrier Cebu Pacific, is venturing into ground-handling services at the airport.
In a disclosure to the stock exchange on Wednesday, Cebu Air said the Securities and Exchange Commission (SEC) approved the incorporation of its subsidiary 1Aviation Groundhandling Services Corporation.
Cebu Pacific had previously tapped MIASCOR Ground Handling Corp. for services at the Ninoy Aquino International Airport (NAIA).
However, the Manila International Airport Authority (MIAA) in January said it will not renew the contract of MIASCOR after several reports of luggage theft involving the latter’s employees.
MIASCOR entered into a lease and concession agreement with MIAA in July 2014. The deal expired in March 2017, but has been renewed monthly.
MIAA had previously said its contract with MIASCOR will be finally terminated on April 21.
Aside from Cebu Pacific, MIASCOR provides services to several carriers such as Malaysia Airlines, Asiana Airlines, United Airlines, Turkish Airlines and Qantas at NAIA.
Cebu Air reported a net income of P4.376 billion during the first nine months of 2017, 38% lower than the P7.098 billion earned in the same period last year. Nine-month revenues were up 8% to P50.33 billion, but expenses likewise jumped 16% to P43.08 billion due to the hike in fuel prices and weakening of the Philippine peso against the US dollar.