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Cebu Pacific to invest P2.8 B for new planes
Source: Manila Bulletin
Author: By RACHEL C. BARAWID
Date: 2005-08-05
 
Amid airline bankruptcies and downsizing to survive these trying times, the country’s second flag carrier, Cebu Pacific (CEB) embarked on a P2.8 billion ($500 million) refleeting program in a bid to strengthen its market share and catapult it to the No. 1 position in five years.

First in its program are two 179seater A320s which replaced the CEB’s current fleet of B757s. Known for their low maintenance and fuel costs, these modern aircraft were leased by CEB to service its domestic routes particularly the Manila-Cebu and Manila-Davao routes.

Meanwhile, CEB also bought 12 brand-new Airbus 319, the first of which will be delivered in September. It will replace the old fleet of DC9s and service both domestic and regional destinations including Korea and Japan. With a capacity of 150 passengers, the A319 is considered among the quietest and most fuel-efficient in its class. The new fleet will consume only 45 percent less fuel.

According to CEB president and chief executive officer Lance Gokongwei, by 2007, Cebu Pacific will be the youngest fleet in Asia with the completion of the refleeting program.

He expressed confidence that the program will help the airline increase its market share (a current 38 percent share gained after only eight years of service) and eventually become the industry lead.

Cebu Pacific is the newest airline to join 32 other A320 airline operators in Asia Pacific. Among the operators are Asiana Airlines, Dragonair, Silkair, Tiger Airways, Bangkok Airways, Air Nippon and Vietnam Airlines.

"As the new planes come in, we will be adding more flights to and from Korea and Japan as well as service new domestic destinations," said CEB general manager Bong Mojica, adding that the Manila and Cebu hubs will also see increased activity.

Mojica also announced that as part of the expansion of regional and domestic service, CEB will soon fly four times weekly to Osaka, Japan by the third quarter of the year. This would be followed by a service in China and increased frequency of flights to Seoul, Korea.

CEB’s plans for opening three other international routes are also in the pipeline.

Meanwhile, Gokongwei said although the program is a huge investment, the gains will be worth more, translating to passenger growth, bigger revenue and a boost in its cargo operations as the new aircraft would have a bigger capacity to move cargo.

The refleeting program was funded by a combination of internally generated funds, export-credit agencies and saleleasebacks.

With this milestone, Gokongwei assured that CEB will be able to further upgrade their services to their loyal patrons.

"We will remain an on-time carrier. Our record is among the best in the world and way above the international norm. We want Cebu Pacific to be equated with punctuality wherever we fly," he stressed.

Throughout its nine years of operation, Cebu Pacific has become associated with its low fares, on-time performance, schedule reliability, and its smooth, comfortable and fun flights.

CEB is most popular for its on-time flights. In the last 12 months, the airline garnered a world-class reliability record of flying with 96 percent of flights within 15 minutes of schedule, while 86 percent departed on time to the minute.

The airline has also pioneered the low fare, great value strategy as well as its fun flights.

Compared to other airlines, the lowcost carrier gave more value for money thereby enticing more flyers to travel more and take companions on their trips.

In an effort to make passengers enjoy the flight and drive away the ennui usually present during travel, CEB came up with on board games and inflight surprises. Conducted by its friendly cabin crew, passengers even get prizes and souvenir items from the games.

At present, Cebu Pacific flies to two regional destinations Hong Kong and Seoul and services 15 domestic destinations with almost 80 flights daily. These are Kalibo, Bacolod, Butuan, Cotabato, Cagayan de Oro, Cebu, Davao, Dumaguete, Iloilo, Puerto Princesa, Roxas, Subic, Tacloban, Tagbilaran and Zamboanga.
 

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