MANILA - Lucio Tan-owned Air Philippines has leased 8 planes from its affliate Philippine Airlines (PAL) as part of its efforts to fully embrace the budget business model.

Starting today, Air Philippines said it has operated 8 Bombardier turboprop aircraft leased from PAL. The fleet is set to fly to 19 towns and cities from Manila and Cebu.

The following are Air Philippines' destinations out of its Manila and Cebu hubs:

• Manila: Tuguegarao, San Jose (Mindoro Occidental), Naga, Virac, Busuanga, Catarman, Calbayog, Ormoc, Surigao
• Cebu: Kalibo, Iloilo, Bacolod, Tacloban, Butuan, Ozamiz, Cagayan de Oro, General Santos, Zamboanga, Davao (from Zamboanga)

"Operations to Caticlan for Boracay traffic will resume as soon as runway improvements are completed. Additional cities in Luzon, Visayas and Mindanao are being evaluated for future operations," Air Philippines said in a statement.

By going to multiple destinations, Air Philippines is able to reduce turnaround time and increase per-plane utilization. Maximizing the flying hours of each aircraft will translate to more revenue per passenger, allowing Air Philippines to dramatically slash its fares just like Gokongwei-led Carrier Cebu Pacific.

In the Philippines, Cebu Pacific was the first to shift to a low-cost, no-frills airline, which was a growing trend among global industry players. Other airlines eventually followed suit, including PAL's budget arm, PAL Express.

Aside from more efficient aircraft, Air Philippines has appointed a new management team to implement the airline's new business model.

"David Lim, Air Philippines' new president, and Cesar Chiong, EVP and COO, were tasked to fast-track the airline's conversion to a low-cost business model using a leaner workforce," the company said.

Earlier, Air Philippines temporarily ceased operations to undergo a refleeting program. At present, the Lucio Tan Group of Companies owns 99% of Air Philippines and 95% of PAL.