Cebu Pacific Inks B757 Contract With Pegasus Aviation.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 7, 2001

Cebu Pacific Air finalized its contract with Pegasus Aviation, Inc. for the lease of two Boeing 757-200s (RB-211-535C4s) (24370, 24371).

These will be used primarily for the airline's imminent regional operations.

The contract signing was held with Cebu Pacific Chairman John Gokongwei, Cebu Pacific President and CEO Lance Gokongwei, and Pegasus VP for Marketing -- Asia Troy Tollen, accompanied by Cebu Pacific Corporate Secretary Attorney Perry Pe and Cebu Pacific VP, Corporate Planning and External Affairs Peggy Vera.

Designated as the country's second flag carrier, Cebu Pacific is expecting the first of the two 183-seater aircraft to arrive on the third week of October. The second aircraft will be delivered in November.

The exact date for the launch of its regional flights has not been disclosed yet. "We are still in the process of hiring additional staff and training employees for international operations," said Lance Gokongwei, Cebu Pacific president and CEO. "Likewise, we want to make sure that all operational systems for this expansion are in place before we reveal when our start-up will commence. Flying international is a gigantic leap for us, and we want everything to be close to perfect."

Gokongwei is anticipating a healthy, long-term relationship with its new business partner, Pegasus Aviation, Inc.

"The company is used to dealing with big players like Northwest, Korean Air and British Airways," Gokongwei said. "But Pegasus also assists the development of small to medium-scale carriers with their fleet building, fleet renewal and fleet planning programs. We look forward to working with such a dynamic company."

Gokongwei added, "Our contract includes an option to lease another unit, and option to upgrade to larger aircraft."

"We are proud to be associated with Cebu Pacific and their international expansion," said Troy Tollen, Pegasus Aviation's VP for Marketing, Asia. "This move is consistent with our strategy to establish long-term relationships with growing airlines around the world. This is the first step in a valued relationship."

Pegasus Aviation, Inc. is the third largest aircraft lessor worldwide, with a total of 217 commercial jet aircraft on lease to 65 customers in 30 countries. 178 of these are used for passenger operations while the rest are for freighter. For the fiscal year 2001, it raked in $450 million in operating lease revenues, and its assets total to $4.5 billion.

"Pegasus' stability, solid reputation and professionalism make them the ideal partner in introducing Cebu Pacific's brand of service to the rest of the world," Gokongwei said.

Note: This release was issued by Cebu Pacific Air and is being redistributed on behalf of Pegasus Aviation.