[ Malaya.com.ph ] April 17, 2008
By GENIVI FACTAO
Cebu Pacific yesterday said the market is big enough to accommodate the entry of PAL Express, the new low fare unit of Philippine Airlines.
Lance Gokongwei, CEB president said the airline will continue to expand its Cebu hub, add new innovations and increase productivity to compete with PAL Express.
He said the market is huge and consumers and the tourism industry will benefit from heightened competition among budget airlines.
"The setting up of a local carrier of PAL will further enhance the continuing growth in the Philippine travel market and will give benefit to aligned industries including tourism," he said, adding that "we are the third fastest growing domestic air market in the world last year."
Gokongwei said PAL Express would only be replacing existing routes of Air Philippines.
"We’re first in Cebu.. We have the most extensive plights in Cebu.. In the regional basis we fly 7 international destinations from Cebu and the only Philippine carrier that fly Cebu to Singapore, Taipei, Macau, Bangkok and Pusan. We already fly Cebu – Bacolod with Airbus 380, Cebu-Caticlan with ATR, Cebu-Ilo-ilo, also with our Airbus," he furthered.
Gokongwei added that the airline has 4 aircraft based in Cebu and they intend to increase it to 6 before the year-ends.
Starting June, CEB will be opening its new hub in Davao.
CEB is expecting to continue its growth strongly this year, in spite of the major hurdle like the fuel price increase. Fuel eats up 80 percent of its operating cost.
In the first quarter, passenger growth was a little over 20 percent, and it expect a huge jump in the second and third quarter and break the 1 million mark in May.
This year, the company is expecting a growth of 40 to 45 percent in passengers to 7 million passengers from 500 million last years, as 10 additional aircraft will be arriving within the year.
They expect growth in revenues to P20 billion this year from P15 billion last year.
Gokongwei said there is a faster growing market in the lost cost carriers, than full service carrier, as they sought for value, best quality, best value, safety, reliability and schedule.
"This market whether in United States or the Philippines, is growing much faster and I think this should continue," Gokongwei said.
CEB has chosen Navitaire, a wholly owned subsidiary of Accenture to host reservation and revenue management services of the airline.
Navitaire delivers industry-leading technologies that enable growth and profitability to more than 85 airlines worldwide.
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