Cebu Pac, Tiger seek higher fuel surcharge on Macau, Phuket flights

MANILA, Philippines - Budget airlines Cebu Air Inc. (Cebu Pacific) of taipan John L. Gokongwei Jr. and Singapore-owned Tiger Airways Philippines are seeking to impose higher fuel charges on flights to Macau and Thailand.

Cebu Pacific has filed a petition before the Civil Aeronautics Board (CAB) increasing the fuel surcharge imposed on flights between Manila and Macau by 67 percent to $25 from the current $15.

On the other hand, Tiger Airways (formerly Southeast Asian Airlines) is seeking the green light from the CAB to impose a fuel surcharge of P2,500 on the passengers of its Manila to Phuket, Thailand flights.

The CAB allows airlines to impose fuel surcharge on international and domestic passengers as a temporary relief to help them recover losses arising from the increase in jet fuel prices in the world market.

Latest results of the Jet Fuel Price Monitor of the International Air Transportation Association (IATA) showed that average price of jet fuel rose 4.2 percent to $125.6 per barrel from a year ago level exceeding the full year target of $123.4 per barrel set by IATA.

Cebu Pacific has an existing fleet of 46 aircraft consisting of 27 Airbus A320s, 10 A319s, eight ATR 72-500, and an A330 aircraft.

Cebu Pacific is scheduled to take the delivery of 15 more Airbus A320, 30 Airbus A321neo aircraft orders, and 5 Airbus A330 aircraft on operating lease agreements between 2013 and 2021.

The low cost carrier currently flies to 22 international destinations including Bali, Bangkok, Beijing, Brunei, Busan, Dubai, Guangzhou, Hanoi, Ho Chi Minh, Hong Kong, Incheon (Seoul), Jakarta, Kota Kinabalu, Kuala Lumpur, Macau, Osaka, Phuket, Shanghai, Siem Reap, Singapore, Taipei and Xiamen.

On the other hand, Tiger Airways intends to beef up its existing fleet of five aircraft consisting of two Airbus A320 and three A319 aircraft to 25 within the next three to five years. It intends to acquire at least three to four aircraft per year over the next three to five years.

Tiger Airways currently flies to Singapore, Bangkok, Hong Kong as well as local destinations including Clark, Laoag, Bacolod, Kalibo, Cebu, Iloilo, Tacloban, and Puerto Princesa via its hubs in Clark and Terminal 4 of the Ninoy Aquino International Airport (NAIA).

In August last year, Tiger Airways through wholly-owned subsidiary Roar Aviation II Pte Ltd acquired a 40 percent stake in SEAIR for a total consideration of $2.5 million. The investment in Seair is Tiger’s second joint venture after it acquired a 33 percent stake in Mandala Airlines in Indonesia.

The other 60 percent of Tiger Airways is owned by a group of Filipino businessmen.