Cebu Pacific overtakes PAL in global ranking

MANILA - Low-cost carrier Cebu Pacific said Wednesday it has overtaken older local carrier Philippine Airlines in terms of number of weekly flights as of June. The Gokongwei-led budget carrier cited data from global flight information and data solutions company Official Airline Guide (OAG).

In a statement, Cebu Pacific said it now ranks 65th among world airlines--7 notches higher than PAL's 72nd rank this month.

Cebu Pacific has 1,655 weekly flights as of June this year, higher than PAL's 1,566.

"This new leadership milestone was a result of the airline's sustained focus on offering the newest planes and the lowest possible fares to its passengers," Cebu Pacific Vice President for Marketing and Distribution Candice Iyog said.

Delta Airlines ranked first with 26,898 weekly flights, followed by American Airlines (24,893) and United Airlines (23,996). Among Asian airlines, China Southern Airlines had the highest ranking (11th) with 9,440 weekly flights.

At present, Cebu Pacific said it is now Asia's third largest budget airline, serving 32 domestic destinations and flying to 14 cities in the region. Iyog said the airline's reach will be expanded further with the delivery of 15 new Airbus A320 over the next three years.

By 2013, Iyog said Cebu Pacific should have a total of 27 Airbus aircraft and 10 turbo-prop ATRs, the youngest aircraft fleet in the Philippines. On top of these, she said the Gokongwei-led airline is considering to buy five more planes.

"We are about 40 percent cheaper on average than the other airlines. So with low fares, new planes, and the convenience we offer by flying from four hubs--which allowed direct flights within regions anddid away with flying via Manila--we are in effect are offering what the people want and need," she said.

Cebu Pacific uses its four hubs (Manila, Cebu, Clark, and Davao) to fly 1,401 times weekly within the Philippines and 264 times weekly in Asia.

"We will continue to seek ways to expand and make more people fly. We have a great busines model that has shown domestic growth despite the present global downturn. We are confident that our march to further growth will continue," she said.

Cebu Pacific ferried 6.7 million passengers last year, and is expecting to carry close to 9 million this year. From 2010 onwards, the airline is looking at higher passenger traffic with the arrival of new aircraft and the growing list of destinations.

Source: ABS-CBN News

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Cebu Pacific launches one way ‘Go Lite’ fare for its Cebu hub services

Value-airline Cebu Pacific (CEB) is offering a PHP286 one way ‘Go Lite’ fare for its Cebu hub flights to boost local tourism and trade amid the present economic slowdown.

The seat sale include flights from Manila to Cebu and Cebu to Bacolod, Boracay (Caticlan), Cagayan de Oro, Cotabato, Davao, Dipolog, Dumagete, Iloilo, Roxas, Siargao, and Zamboanga.

The promotional sale is for travel from 15-Jul-2009 to 31-Aug-2009. Sale is from 24-Jun to 26-Jun.

‘Go Lite’ fares are for passengers traveling with no check-in baggage. Passengers with check-in bags have to add P200 to the fare.

CEB vice president for marketing and distribution Candice Iyog said, “Our seat sale supports the government’s efforts to stimulate economic activity by promoting tourism which in turn supports the various local industries that depend on tourism growth. Cebu Pacific’s trademark low fares will allow both foreign and local tourists access to the many destinations our country has to offer.”

Source: Peanuts.aero

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Cebu tourism up 8.5% despite global crisis

Cebu posted an 8.51 percent growth in tourist arrivals despite the drop in key foreign markets at the onset of the global economic crisis last year, the Department of Tourism (DOT) said.

Tourism Undersecretary Phineas Alburo said Cebu drew close to 650,000 tourists out of the 3.13 million tourists that visited the country last year.

He said most of them were traditional visitors like Koreans, Japanese and Americans.

European tourists topped the country's arrivals with Russian tourists comprising 34 percent of the market followed by France with 19 percent and Great Britian with 10 percent.

“DOT’s efforts to diversify and offer new tourist products like adventure, diving and bird watching provided the impetus to stimulate increase in awareness of the country’s tourism potentials,” Alburo told local media at last week's Tourism Congress.

However, Alburo said the global crisis caused a significant drop in foreign tourist arrivals with Korean tourists declining by four percent and Japanese tourists by seven percent.

The number of Chinese tourists likewise dropped at 4.5 percent.

“Either people were losing jobs or people were not sure about their disposable income. In times like this, people tend to travel less far, less long and less expensive. They are staying in their home countries as domestic tourists,” he said.

Alburo said the DOT has shifted marketing efforts towards attracting more domestic tourists through events like the Philippine International Travel Fair (PITF) on June 25 to 27 at the Marco Polo Plaza Cebu.

The PITF is expected to gather 100 buyers worldwide to meet Philippine sellers of tourism packages, products and services.

Another event, the Meetings, Incentives, Conventions and Exhibitions (MICE) Mart on July 10 at Edsa Shangri-La Manila will set up foreign buyers with Philippine suppliers, Alburo said.

“Cautious but optimistic is the attitude of tourism players who believe that people will always travel for pleasure. The key word now is value in terms of what you get, for what you pay and your experience,” said Alburo.

While the H1N1 virus scare will affect tourism performance this year, Alburo said it is important that government is shown doing its best to contain the outbreak.

“What we are after now is image. Wearing masks affect the images because people will immediately react that the disease is not contained. This perception may lead to cancellation (of bookings and other travel plans),” he said.

Source: Cris Evert Lato Cebu Daily News

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Cebu Pacific ramps up fleet: Airline planning to buy 20 airplanes

GOKONGWEI-led Cebu Pacific on Tuesday said it will buy five more Airbus A320-family aircraft from its earlier planned purchase of 10 airplanes.

In addition, the company is studying whether it should order five more aircraft, said Cebu Pacific president Lance Gokongwei.

Total investment for this fleet expansion is estimated to reach $1.3 billion. Delivery of the 180-seat aircraft, said Gokongwei, is scheduled from October 2010 to November 2013.

Gokongwei said the additional orders are needed because of the airline’s expanding domestic and international operations.

The Airbus A320 family of short- to medium-range commercial passenger airliners are manufactured by France-based Airbus and are the only narrow-body aircraft in their product line. Family members include the A318, A319, A320 and A321, as well as the ACJ business jet.

With more than 3,800 aircraft of the A320 family built, it is the second best-selling jet airliner family of all time after its primary competition, the Boeing 737. “The global economic downturn notwithstanding, we are experiencing a surge in the number of passengers flying Cebu Pacific mainly because of our low fares. We expect this growth to continue, hence our decision to further expand our fleet,” he said.

Cebu Pacific carried close to 7 million passengers last year and expects to carry 9 million this year. Altogether, the airline has placed firm orders of 27 A320 aircraft, of which 12 have already been delivered.  “We currently operate 21 aircraft in the A320 family, including nine leased ones, with an average age of just 1.9 years.”  Gokongwei said in a statement.

The new A320s will be powered by CFM International’s CFM56-5B engines, worth $140 million, which are very efficient and have better fuel consumption. The engine also meets the latest environmental protection standards set by the International Civil Aviation Organization for its low carbon dioxide emission.

The airline had earlier signed a $100-million OnPoint solution agreement with GE Aviation’s services business. The 12-year service contract includes general maintenance and repairs, parts procurement, technology upgrades, engine leasing, and overhaul of the CFM56-5B engines. “This expansion will more than double passenger capacity and enable us to provide our trademark low fares for new domestic and international destinations. We expect to increase our passenger numbers from 9 million this year to 15 million in 2013,” Gokongwei added.

Cebu Pacific operates flights to 15 cities in Asia and 32 domestic destinations using 21 Airbus aircraft and eight ATR aircraft.

Source: Lenie Lectura Business Mirror


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