Cebu Pacific beats rival PAL in Q1

Posted at 06/08/2010 4:34 PM | Updated as of 06/08/2010 10:10 PM

MANILA, Philippines - Low cost carrier Cebu Pacific  flew more domestic and international passengers in the first quarter to beat rival Philippine Airlines (PAL), the airline said on Tuesday.

Cebu Pacific is the airline unit of listed conglomerate JG Summit Holdings which in turn is  owned by businessman John Gokongwei Jr.

The airline cited data by the Civil Aeronautics Board (CAB) which showed that Cebu Pacific flew 2,448,990 domestic and international passengers from January to March this year, nearly 110,000 more than PAL's system-wide figures of 2,339,788.

In 2009, Cebu Pacific was the top domestic carrier after getting a commanding 50% share of the market. The airline which started operations in 1996, maintained its top position in the first half with a 51% market share.

"Our consistent focus and commitment to offering the lowest fares for value service continue to pay off. We expect to grow even more in the coming years as we take delivery of more brand-new planes which we will use to expand our capacity, increase frequencies, and fly to more local and foreign destinations," said Cebu Pacific vice president for marketing and distribution Candice Iyog.

The airline is buying 22 more 180-seat Airbus A320 aircraft for delivery starting in October this year until 2014.

The acquisition would make the airline's Airbus fleet the largest in the country as well.

Cebu Pacific is currently operating the youngest aircraft fleet in the country, with 21 Airbus and 8 ATR 72-500 aircraft.

"Our expansion will drive our costs lower, benefiting the flying public with Cebu Pacific's trademark low fares," said Iyog.

Last year, Cebu Pacific carried 8.8 million domestic and international passengers, a 31% increase from 2008.

For 2010, the airline expects its passengers to rise to 10 million.

By 2013, it is projecting to carry a total of 15 million passengers, exceeding the capacity of the NAIA Terminal 3, its home base.

From the last quarter of 2010 onwards, Cebu Pacific also expects to strengthen its network of 33 domestic and 15 international destinations with more routes and increased frequencies. It just recently announced its newest Brunei route, slated to start this August 21.

Rival PAL meanwhile, announced separately that it will offer a one-day-only seat sale to selected destinations to celebrate Independence day.

For June 9, the featured destination is Saigon. In September 1989, the highly acclaimed Broadway and West End musical Miss Saigon opened in London, catapulting singer Lea Salonga to international fame with her portrayal of the main character, Kim.

The $152 roundtrip, economy fare to Saigon is available only on June 9 at all PAL ticket offices, PAL website and accredited travel agents. The all-in fare is inclusive of surcharges but excludes government taxes and ticketing service fee. The travel period is from June 15 to September 30.
 


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