Friday, February 20, 2009

Cebu Pacific

Cebu Pacific, the challenger of Philippine Airlines is gaining foothold in the Philippine domestic market chopping a market share of 45.6% in 2008 - up 2.6% from last year. It has flown in 2008 some 5.4 million passengers, half a million more than PAL and PAL Express combined. PAL flew a total of 4.9 million only. PAL sister Air Philippines carried 913,570 passengers. Zest Air (formerly Asian Spirit) shared the market with 374,145 passengers while Seair flew 217,885 passengers.

By this year, Cebu Pacific is hoping to fly some 9 million passengers with new deliveries of fresh-from-the-plant aircraft from Airbus and ATR and mounting flights to new domestic and international destinations, in additional to more frequencies of its domestic routes.

I am exciting about this massive build-up of Cebu Pacific's fleet that will match PAL's dominance in the local airline industry. PAL has been slow in opening new missionary routes while Cebu Pacific has been aggressive in trying out new local destinations. Cebu Pacific is leader in developing the local market through its low fare strategy. This is actually benefitting other airlines because Pinoys are now realizing that air travel is no longer the domain of the rich - as the catchy motto of Cebu Pacific says: Now every Juan can fly!

Imagine an air fare that is even lower than bus fare! Filipinos is used to travelling by bus as the whole archipelago is interconnected through the so-called nautical highways, the oldest being in the eastern seaboard from Luzon to the Samar-Leyte connection onto Mindanao. But the lowering of ticket price has made Filipinos think of flying and travelling.

In my workplace alone, where everybody get to have an annual vacation (actually in group), we benefit from the low prices of Cebu Pacific. And as I or we wait for the opening of Manila-Basco fligh, we wonder why is it so very expensive to fly to Batanes. The other airlines are not dropping their fare not only to afford travellers to fly but to help domestic tourism of Batanes. If more people could afford a Manila-Basco air travel, more tourism will visit Batanes and that something for the local economy.

If Cebu Pacific will mount a flight, surely, we will be the first to fall in line. In fact, I have been calling their office - as they have announced in print that they will serve Basco, to inquire when they will mount such flight. We have already a picture of Batanes as featured in movies and in newspapers but as the saying goes: To see is to believe.

So, I am waiting till then.

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