Cebu Pacific, the air transportation arm of the Gokongwei group of companies, took over the sale and service of the cargo operations in January 2000. This was previously handled by another entity.
In its first month of operations, Cebu Pacific earned more than P10 million from its cargo services. By May 2000, the company was chalking up around P20 million, and by August, it had already exceeded its target by P17.6 million.
As of end 2000, Cebu Pacific’s revenues from its 11-and-a half month old cargo operations had hit P234 million, exceeding its target by P2.2 million.
Ramirez said as of Dec. 31, 2000, Cebu Pacific had moved over P2.5 million kilograms of cargo.
He said for its cargo business, Cebu Pacific used the same marketing approach that worked successfully for its passenger operations innovative pricing, efficiency, an extensive distribution system, effective promotions, a potent sales force, and solid support from management.
Cargo offices were set up in Manila, Cebu, Davao, Zamboanga, Tacloban, Dumaguete, Cagayan de Oro, Roxas City, Kalibo, Bacolod and Iloilo.
"Cargo operation policies were carefully defined to guarantee maximum convenience for shippers. The team made certain that, first and foremost, Cebu Pacific Cargo is customer-friendly, as it offers value quality service at value plus costs, the right number of frequencies to the right destinations, and simplified procedures and forms for faster processing time," Ramirez said.
He said Cebu Pacific Cargo also recorded high on-time performance and offered its customers pilfer-free individual storage areas. Its warehouse provide separate sections for incoming and outgoing cargo. Likewise, Cebu Pacific was the first domestic airline to put in cargo cages for its destinations.
Ramirez said Cebu Pacific Cargo also managed to distinguish itself by offering innovations to normal industry practices. It installed a platform or pancake weighing scale where the entire cargo volume can be weighed as it is loaded on the cargo cart.