Cebu Pacific grabs 41% market share in June

Gokongwei-controlled Cebu Pacific (CEB), the country’s low fare leader, registered a record-high domestic market share of more than 41 percent for the month of June, company officials revealed.

The increase relates to all competitive domestic jet markets and is the highest level reported in the airline’s more than 10 years of operation.

Historically, June is a lean travel month but CEB also reported a load factor of more than 79 percent for the same period carrying 65 percent more domestic passengers in June 2006 than in June 2005. CEB market share for June 2005 was 31 percent.

The steady growth in market share and load factor is attributed to the aggressive pricing strategy adopted by the airline. CEB launched its low-priced "Go" fares in Nov. 2005. It also offered P10 and P1 promo fares in March 2006.

CEB also acquired two Airbus A319 aircraft which arrived in June, as the company retires its DC9 aircrafts. By the end of this month, CEB will be operating an all-Airbus fleet, boasting of the youngest fleet in the Philippines and one of the youngest in Asia.

"Cebu Pacific has always been committed to serve the Filipino. Our vision is to make it possible for every Juan to fly by offering the lowest fares possible to wherever Cebu Pacific operates. And now with our brand new, bigger Airbus planes, we will be able to offer more seats at lower fares to the public," CEB president and CEO Lance Gokongwei said.

He added that they are very much encouraged by the growth in traffic since the introduction of "Go" fares and the various seat sales because they see that domestic tourism can be stimulated even during the lean season.

"Very importantly this also means that we as a country can develop tourism to become a year-round industry. We will continue to offer our low fares and high quality service because we really believe it’s time every Juan flies," Gokongwei emphasized.

CEB now services 17 domestic destinations and also flies to Hong Kong and Seoul, South Korea. The airline currently operates two A320 and six A319 aircraft. Four more A319 aircraft will arrive before the end of the year while the last two A320 aircraft will arrive in early 2007.

Now in its 11th year, CEB pioneered low fares in the country in March 1996. It also introduced travelers to on-time service, e-ticketing and online booking, setting the standards for airline innovation in the local aviation industry.