At the sidelines of the annual stockholders meeting of JG Summit Holdings Inc. late Wednesday, Cebu Pacific president Lance Gokongwei said the carrier is just awaiting the approval of Singapore airport authorities. He said Cebu Pacific, the second largest domestic carrier in the Philippines, intends to fly daily to Singapore.
The airline company suspended its loss-making route to Singapore in 2003, barely three months after its launch.
This time, Cebu Pacific reportedly wants to use the purpose-built terminal for low-cost airlines in Singapore.
Singapore-based Tiger Airways is the only budget carrier operating at the dedicated low-cost terminal which opened in March and can handle 2.7 million passengers a year.
Cebu Pacific is also planning to increase its flights to Hong Kong from the present 17 times a week to 21 times weekly.
Gokongwei said two new Airbuses are expected to arrive next month and another two in January or February 2007.
By 2007, Cebu Pacific would have completed its refleeting program acquiring 14 brand new Airbus A319s and A320s, making the airline’s fleet one of the youngest in the region, Gokongwei said.
Cebu Pacific plans to borrow as much as $300 million this year for continuing acquisition of new aircraft to replace aging units.
Cebu Pacific positions itself as the first low-cost airline based in the country, while serving regional destinations, and eventually other international routes.
It flies to 16 destinations in the Philippines and has only two international points, Hong Kong and Seoul.
Despite the huge investment, Cebu Pacific is expected to be profitable as the new re-fleeting program would reduce fuel operating cost by 30 percent. The 179-seater A320 aircraft is known for low maintenance and fuel costs which would allow Cebu Pacific to continue offering its trademark value fares.
Cebu Pacific is targeting 2.5 million passengers next year with the acquisition of a new fleet of modern and low-cost planes.