=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/09/01/f= inancial0723EDT0017.DTL --------------------------------------------------------------------- Wednesday, September 1, 2004 (AP) Philippines' Cebu Air to buy 12 Airbus jets, lease two more (09-01) 04:23 PDT MANILA, Philippines (AP) -- Philippine budget airline Cebu Air said Wednesday it will buy 12 new Airbus A319s as part of a drive to replenish its fleet. The price was not disclosed. Cebu Air, which is owned by conglomerate JG Summit Holdings Inc., currently operates a fleet of 12 McDonnell Douglas DC9-32s and three Boeing 757s. Cebu Air president Lance Gokongwei told reporters the airline will also take a five-year lease on two Airbus A320 jets which will be delivered in April and May next year. The first of the 12 new 150-seat A319s will be delivered in September 2005, while the rest will follow through February 2007, he said. Gokongwei refused to disclose the cost of the aircraft. However, he said the 12 jets have a total list price of $670 million, which doesn't include steep discounts typically offered to airlines. Danilo Mojica, Cebu Air's general manager, said the new fleet will trim = by 40 percent the budget airline's operating and maintenance costs as well as increase its total seating capacity. While the A319 can accommodate up to 150 passengers, the DC9 can only carry 115 passengers. Mojica said the Airbus jets also have a longer range that will allow Cebu Pacific to expand to other destinations in the region, such as Japan. Gokongwei said the acquisition will primarily be financed through loans guaranteed by European export credit agencies. Around 15 percent of the purchase price will come from the carrier's cash flow, he said. He said the airline was negotiating with Coface of France, Hermes of Germany and the Export Credit Guarantee Department of Britain for the credit guarantee. ---------------------------------------------------------------------- Copyright 2004 AP