Cebu Air Inc. said Friday it is raising $250 million from the sale of preferred shares through a stock rights offering to fund business transformation amid the COVID-19 pandemic.
“As part of the business transformation exercise, the corporation intends to undergo a fundraising plan, which will include, among others, a convertible preferred shares stock rights offering for an aggregate proceeds of about $250 million,” the airline unit of the Gokongwei Group said.
The airline said the proposed convertible preferred shares stock rights offering would be fair, transparent and equitable to all shareholders.
It said the airline industry faces significant challenges as a result of unprecedented events outside the control of the corporation brought by the COVID-19 pandemic.
“Travel restrictions imposed by various governments, both local and abroad, have led to abrupt reduction in passenger traffic for the Corporation and casts uncertainty over the near term prospects of the corporation despite its market leadership,” it said.
The company said that because of the exceptional change in market conditions and industry dynamics, it saw the urgent need to fast track its transformation.
Cebu Air said it was implementing a business transformation exercise that involves right-sizing of network and fleet to meet new demand and improvement of operations efficiency through process and policy enhancements and digitalization. “This places the corporation in a better position to respond to this harsh reality,” the airline said.
CEB earlier reported a net loss of P14.68 billion from January to September, compared to the P6.76 billion net income it earned in the same period last year.
Meanwhile, Cebu Pacific said it added self-service features to its online ‘Manage Booking’ portal to make it more convenient for travelers. Passengers can now easily update information, including name, birthday, nationality and salutations through cebupacificair.com.
“We have been enhancing our contactless experience and accelerating our digital initiatives because these provide quicker and safer options for our passengers. Our customers remain at the heart of our business, so you can expect more enhancements from us that further support and enable a self-service journey for everyone,” said Cebu Pacific vice president for marketing and customer experience Candice Iyog.
Requests to correct misspelled names and other details are often raised through the airline’s call center and chat support. This added feature will ensure an improved customer experience, with faster resolution of their concerns.
CEB passengers will be able to make corrections to their first or last name within 24 hours from the time the booking is made, as long as they have not yet checked in for the flight. This does not make bookings transferrable, but having this feature enables guests to easily correct details on their own, making the whole experience hassle-free.
Similarly, information such as birthdate, nationality, and salutations may also be corrected one time, at no cost. These may be updated until two hours before scheduled time of departure, prior to checking in for the flight.