Monday, February 20, 2012

Cebu Pacific plans to take off long-haul flights by the end of 2013

By Anthony Tan

The Philippines’ leading budget airline Cebu Pacific (CEB) plans to start long-haul operations in the third quarter of next year.

It targets to operate low-cost return flights to cities where large Filipino communities reside in Europe, Middle East, Oceania and the US.

In CEB’s recent announcement, the airline is looking into leasing up to eight Airbus A330-300 aircraft to serve the new routes.

The Airbus A330 has the capacity to fly long range of up to 11 hours which means it can serve the target markets such as Australia, Middle East, Europe and the US.

The airline currently operates 37 aircrafts with 10 Airbus A319, 19 Airbus A320 and 8 ATR-72 500 aircraft. The current fleet of aircrafts in CEB is below the flight range of the new target market.

“The A330-300 will give us the lowest cost per seat, allowing us to drive long-haul fares 35% lower than those currently offered by other airlines, and as much as 80% lower when CEB offers promo fares. This aircraft type is very well suited to the kind of network we want to build and the routes we want to launch,” said Lance Gokongwei, CEB President and CEO.

“We are exploring serving cities where large Filipino communities reside in Europe, Middle East, Oceania and the USA. Data indicates that more than half of Filipinos deployed in these regions take multiple stops and connecting flights because no home carrier can fly them there non-stop.

Saudi Arabia as an example, where only 165,000 passengers flew direct non-stop flights from Manila (Civil Aeronautics Board 2010 data), compared to 293,000 Filipinos deployed to Saudi Arabia in the same year.

This means that nearly half of Filipinos who flew to Saudi Arabia in 2010 had to take multiple flights to get to their destination.

With CEB’s long haul operations, the budget airline will provide more affordable, direct flight options to Filipinos overseas, a population estimated to be 11 million worldwide,” added Gokongwei.

“We want to do the same for long-haul traffic offer the lowest fares possible and drive a significant increase on demand for air travel to regions outside of Asia. This is truly an exciting time for CEB as we continue to be of service to the 11 million strong global Filipinos, wherever they are in the world; and to their families back home,” Gokongwei said.

He added, “As CEB develops long-haul routes and opens new destinations for a Philippine flag carrier, we will be creating an important enabler for increased trade, tourism and foreign investment.”

CEB has operating hubs in Manila, Cebu, Clark and Davao and the most extensive network in the Philippines with 34 domestic destinations.

It also offers 19 international destinations, namely Bangkok, Beijing, Brunei, Busan, Guangzhou, Hanoi, Ho Chi Minh, Hong Kong, Incheon (Seoul), Jakarta, Kota Kinabalu, Kuala Lumpur, Macau, Osaka, Shanghai, Siem Reap, Singapore, Taipei and Xiamen.

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