Last Updated 15 Jun 2020

Cebu Pacific Air

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History - In late August, 1988, Cebu Air was established in Pasay City, Metro Manila, the Philippines, but it only started operations almost 8 years later, in early March, 1996. - In February 1998, Cebu Pacific Air was grounded by the government, but continued its services next month, after the re-certification of its aircraft. - In late November, 2001, Cebu Pacific Air started operating international flights with a twice-daily service to Hong-Kong. - On the 1st of March, 2002, Cebu Pacific Air introduced thrice-weekly flights to Seoul. In the following years, Cebu Pacific Air continued to introduce new routes and increase flight frequency for some of the existing ones. - In late May, 2008, Cebu Pacific was named as the world's number one airline in terms of growth, ranking fifth in Asia for Budget Airline passengers transported and 23rd in the world. - On July 22, 2008, Cebu Pacific became the first airline to use the new Terminal 3 of the Ninoy Aquino International Airport and the first airline to operate international commercial flights from the new terminal. In August, 2009, Cebu Pacific opened its Twitter account, being the first airline in the Philippines to use social media. - The only fatal accident in the history of Cebu Pacific took place on the 2nd day of February, 1998, when Cebu Pacific Flight 387, a DC-9-32 travelling from Manila to Cagayan de Oro, crashed on the slopes of Mount Sumagaya due to a pilot error, killing all 104 people on board. October 18, 2006 - Cebu Pacific (CEB), the country’s low fare leader, is now the No. domestic airline in terms of flying the most passengers, operating the most number of flight frequencies ; routes and flying to the most domestic destinations. CEB flies to 20 domestic destinations and operates a total of 624 one-way flights per week. The airline also operates a total of 24 routes in its domestic network. As of the latest market share report for the period covering October 1-15, CEB has a domestic market share of 45% and is ahead of its closest competitor by 1 market share point.

This information comes from various airport operations summary reports. Lance Gokongwei, CEB CEO and president, said that the airline now offers an unbeatable combination of the lowest fares, the most number of domestic destinations and routes, the most flight frequencies, on-time flights and the newest planes in the country. Background Cebu Pacific entered the market in March 1996 with a promise to give “low fare, great value” to everyone who wanted to fly.

After offering low fares to domestic destination, it launched its international operations in November 2001 and now caters flight to Bangkok, Busan, Guangzhou, Ho Chi Minh, Hong Kong, Jakarta, Kota Kinabalu, Kuala Lumpur, Macau, Osaka, Seoul, Shanghai, Singapore and Taipei. It provides destinations to which where one can go shopping and site seeing. Cebu Pacific Air operates a fleet of 33 Airbus (10 A319 and 23 A320) and 8 ATR 72-500 aircraft in which is the youngest fleet in the Philippines. Cebu Pacific is not just the leader in low fares but also in innovation and creativity.

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It was the first local airline to introduce e-ticketing, prepaid excess baggage and seat selection in the Philippines. Guests have also learned to anticipate a uniquely upbeat flying experience, as this is the only domestic carrier that offers fun in the skies with its games on board popularly known as Fun Flights, together with its entertaining in-flight magazine. Cebu Pacific also partnered with various destination hotels, car rental service, travel insurance and entertainment ticketing service, to provide its guests a more convenient travel experience.

On time performance, schedule reliability and a smooth, comfortable flight are just some of the things that the air-traveling public has come to expect. Cebu Pacific Air is a low-cost airline based in Pasay City, Manila, the Philippines. It is the country’s second largest airline after Philippine Airlines. Its main base is Ninoy Aquino International Airport, Manila, with a hub at Mactan-Cebu International Airport. The airline was established on 26 August 1988 and started operations on March 8, 1996. It initially started with 24 domestic flights daily among Metro Manila, Metro Cebu, and Davao City.

By end 2001, its operations have grown to about 80 daily flight to 18 domestic destinations. The airline is a subsidiary of JG Summit Holdings. Cebu Pacific is currently headed by Lance Gokongwei, presumptive heir of John Gokongwei, the chairman emeritus of JG Summit. The company has 1,182 employees (as of March 2007. In October 2010, the airline completed an IPO of 30. 4% of outstanding shares. Cebu Pacific carried more than 10 million passengers in 2010. Cebu Pacific started Cebu Pacific Air’s (CEB) unique low-fare; great-value strategy has allowed travelers to enjoy affordable flights to various local and international destinations.

It offers industry leading budget fares through year-round “Go Fares”, which makes use of a tiered-pricing system. This unique product provides ultra-low fares through advanced bookings, making air travel a truly viable option for the Filipino, because Cebu Pacific believes that it’s time every Juan flies. More than this, CEB allows everyone to experience many firsts in the industry, innovations such as the global trend of e-ticketing, web check-in, seat selection, prepaid excess baggage and internet booking through www. ebupacificair. com. With a fleet of 38 aircraft with an average age of 3. 6 years, CEB operates the largest and youngest fleet in the Philippines. To support its growth requirements, CEB will be taking delivery of 22 more Airbus A320 aircraft in the next 5 years. In addition, CEB will be taking delivery of four Airbus 330 wide-body jets, 30 Airbus A321neo aircrafts, the newest member of the A320 series, to add more range, flexibility and efficiency to its fleet. Aside from having the largest domestic network and perating the most local flights daily, CEB continues to expand its international presence as it now flies 19 international destinations in the region, including major cities in China, Korea and Vietnam. As a true innovator in the industry, CEB recently launched flights to Cambodia, home of the Angkor Wat heritage site and direct access from Hong Kong to Kalibo, gateway to the world -renowned island of Boracay. Truly, Cebu Pacific Air works at making more dreams of flight a reality, true to JG Summit’s vision to make a better life available to the Filipino.

SWOT Analysis Strengths * Group bookings may be made through the airline’s Group Sales team and will be subject to specific rules on deposits, payment, rebooking and restrictions. The passenger may contact Group Sales for more information. * Air flight bookings may be made directly on www. cebupacificair. com, with the airline’s ticket offices * Cebu Pacific Air offers a number of facilities as part of its online booking management program: * Web Check-in * Change flights * Printing of schedule receipts * Cancel flights or entire booking * Purchase add-ons Operates 100+ flights a day, to 27 destinations in 7 countries. * Asia’s 3rd largest low-cost airline based carrier with great value * After AirAsia (Malaysia) and JetStar (Australia) * With a market share of 50% * Flown over 45 million passengers since March 1996 * Low cost, great value * Concept: No-frills Airline No hot meals. No newspaper. Mono-class seating. Operating with a single-aircraft type. Faster turnaround time * Makes the flight enjoyable * Fun flights Games, flight safety, sometimes wedding proposals * Gives importance to small details * Airplanes

Youngest fleet --29 aircrafts, average age of 17 months * Small enough to land on smaller airstrips --e. g. top tourist destinations-Boracay & Palawan * No. 1 domestic airline * Domestic flights: 55 * Routes: 146 * Destinations: 33 domestic & 16 international Opportunities * Cebu Pacific has launched a range of innovative advertising opportunities both outdoors and on board, including aircraft body wrap, print ads on thermal boarding passes, and sponsored games on board. * Cebu Pacific operates an average of 270 domestic and international flights daily and flew over 4. million passengers between January and May 2011. * “We are proud to say that Cebu Pacific is the first airline to offer ambient advertising for those who wish to align their products with CEB’s high-quality and fun image, while also reaching out to a captive audience, day-in, day-out through our flights,” said CEB VP for Marketing and Distribution, Candice Iyog. * Cebu Pacific has made recent additions to advertising opportunities on board including overhead cabin lockers, seat trays, motion sickness bags, cups, and napkins. “We offer out-of-the-box advertising options to companies for maximum return of investment and measurable results. This includes advertising opportunities in the sky, through one of our aircraft, as well as strategic placements on our website,” added Candice. * The airline operates 10 Airbus A319, 15 Airbus A320 and 8 ATR-72 500 aircraft. By the end of 2011, CEB will be operating a fleet of 37 aircraft – with an average age of less than 3. 5 years – one of the most modern aircraft fleets in the world. Between 2012 and 2021, Cebu Pacific will take an additional 23 Airbus A320 and 30 Airbus A321neo aircraft. * Cebu pacific was given an opportunity to offer an alternative * When the airline industry was liberated * Legacy carriers (PAL) were privatized * Shows financial strength * Held an initial public offering (October 2013) * Largest local IPO in the Philippines U$D239 million * Php125 per share, 214. 63 shares * Raised Php26. 8 billion in the stock market * Looks at future possibilities * Airline industry’s potential growth is at 15% to 20% * Ordered 24 new Airbus units at U$D2 billion

To handle more passengers Fly more frequently to more routes * Revolutionized the booking system * Dramatic reduction of distribution costs * Gives priority to sales promotion as a mode of communication * Tiered pricing schemes and incentives * The earlier you book, the cheaper the ticket will be Threats * Delayed flights because of bomb threats Cebu Pacific is now the No. 1 domestic airline “Since the launch of our ‘Go’ fares last November, we have seen how this has influenced air travel and encouraged more people to fly.

Our end-September reports show that total domestic travel was up by almost 40% compared to the same period last year and we believe that there’s still more we can do for the industry and the growing Philippine economy,” Gokongwei said. “As we expand our operations and open new routes, both domestic and regional, we will continue to offer the lowest fares in the destinations we fly to. Tens of thousands of people are flying for the first time and that makes both our passengers and the airline very happy,” Gokongwei added.

Gokongwei also said “This is indeed a milestone in the history of Cebu Pacific and much of the credit must go to the CEB team who has worked tirelessly for the past 10 years. Now we are No. 1 in the Philippines and hope to do the same for the region. ” Now in its 11th year, CEB has the newest fleet in the Philippines and one of the newest in Asia as it operates 12 brand new Airbus aircraft to its 20 domestic and 6 regional destinations. The airline awaits the delivery of two more Airbus aircraft in early 2007 to complete its $670 million re-fleeting program.

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