MANILA, Philippines - Cebu Air Inc. (Cebu Pacific), the airline arm of the business empire of taipan John L. Gokongwei Jr., is bullish about the prospects of the airline industry amid intense competition, overcapacity in the domestic market, and rising price of aviation fuel.
Cebu Pacific president and chief executive officer Lance Y. Gokongwei said in an interview with reporters that the airline is expected to sustain the strong growth registered last year wherein passenger volume and revenues grew in double-digit levels.
Gokongwei pointed out that the low cost carrier is bullish about the industry’s outlook despite the continuing challenges including increased competition as well as high price of aviation fuel.
Latest data showed that the net income of Cebu Pacific inched up by 2.4 percent to P2.27 billion in the first nine months of last year from P2.21 billion in the same period in 2011 as revenues jumped 14 percent to P27.87 billion from P24.46 billion.
On the other hand, the budget airline is confident that the volume of passengers would continue to grow this year with the launch of several long-haul destinations led by the Manila to Dubai flights starting Oct. 7.
Cebu Pacific was looking at servicing 14 million passengers last year but the target was derailed after the Department of Transportation and Communications (DOTC) adopted new schemes including the new slotting system to decongest the Ninoy Aquino International Airport (NAIA).
Gokongwei said the budget airline serviced more than 13 million passengers or lower than the target of 14 million due to the ban on the mounting of additional daytime flights.
“But we still have a very significant double digit growth in both passengers and revenues,†he stressed.
It flew 12 percent more passengers in the first nine months of last year after strengthening the airline’s domestic route network out of Cebu and additional capacity to key international destinations.
Cebu Pacific flew 9.8 million passengers from January to September last year or 1.1 million higher than the 8.7 million passengers serviced in the same period in 2011.
Last Nov. 15, Cebu Pacific awarded its 70 millionth passenger barely two years after President Aquino awarded the airline’s 50 millionth passenger.
The flight to Dubai would be the first long haul destination of Cebu Pacific but the airline is also looking at other countries in the Middle East such as the Kingdom of Saudi Arabia, Kuwait, among others as future destinations.
The airline currently flies to 21 international destinations as well as 32 domestic destinations through its six strategically located hubs including Manila, Cebu, Clark, Kalibo, Iloilo, and Davao.
Cebu Pacific currently has a fleet of 41 aircraft including 23 Airbus A320s, 10 Airbus A319s, and eight ATR 72-500 and expects the delivery of seven A320 and two A330s this year.
Meanwhile Gocongwei and Airbus senior vice president for sales Asia launched yesterday the first A320 with Sharklets, the only Philippine carrier to operate the latest version of fuel-efficient A320 family.
Gokongwei said the brand new A320 with sharklets has a wing-tip design that allows airlines to reduce fuel burn by up to four percent on longer sectors.
Gokongwei said the arrival of the brand new aircraft ushers in Cebu Pacific’s fleet expansion. It is the first of seven Sharklets-equipped A320 aircraft that will be delivered later this year.
Cebu Pacific Air today operates 34 A320 family aircraft and has 48 more on order for future delivery, comprising 18 A320ceo and 30 A321neo Gokongwei added.
He said that “in line with our strategy to operate the youngest, most modern fleet possible, we are delighted to become one of the first airlines in the world to introduce the A320 with Sharllets.â€