Cebu Pacific steps up bid to become RP’s 2nd flag carrier

The Gokongwei-owned Cebu Pacific is stepping up its campaign to become the country’s second flag-carrier and is apparently getting support from the multi-sectoral Economic Mobilization Group (EMG).

In a recent meeting of the EMG, Cebu Pacific had expressed interest in becoming the country’s second flag-carrier, taking over the slot left behind by the defunct Panlilio-owned Grand Air.

The EMB agrees on the need for a second official carrier, noting that of the 5.7 million in seat entitlement of the country, only 30 percent is being utilized.

The EMG noted that the capacity utilized by Philippine Airlines (PAL) based ranges on data from the Civil Aeronautics Board (CAB), between 46 percent for Singapore and 92 percent for Korea.

The EMB observed the fact that Grand Air never operated the international routes it were granted. Grand Air stopped operations in 1999.

The EMG, however, realizes the need for the government to start negotiating the inclusion of multiple designation of official carriers for pure cargo and for passenger in existing air services agreements (ASA).

This would be done, though, after adopting implementing rules and regulations (IRRs) under Rule II of multiple designation, separately for combination and pure cargo services.

The government has to conduct such negotiations before another official carrier is allowed to fly to other countries.

Three other local carriers (including Cebu Pacific) have sprung up following the financial problems experienced by PAL.

The three – Cebu Pacific, Air Philippines and Asian Spirit – have basically taken over some of the domestic routes abandoned by PAL.

Among the international routes Cebu Pacific is eyeing is the profitable Cebu-Hong Kong and Davao-Palau. – Marianne Go