CEB to cut airfare costs by 30-40%

CEBU, Philippines - Following its announcement to open long-haul flights to non-Asian countries, Cebu Pacific vowed to cut airfare costs by 30 percent to 40 percent, to give opportunity for Filipinos to travel in what used to be expensive destinations such as United States, Europe, Middle East, Australia, New Zealand, and Oceania.

CEB president and chief executive officer (CEO) Lance Gokongwei announced that this move to make long-haul travel affordable is pushed by the company to primarily support the growing 11 million Filipinos working and residing abroad to easily visit their home-country, as well as loved ones to visit them abroad.

“We are extending the low-cost travel revolution to farther shores, tapping the 11 million [and growing] Filipinos working and residing abroad,” said Gokongwei in a press conference yesterday held at The Crowne Plaza Hotel in Ortigas, Manila.

Giving affordable airfare is also seen not only to tap the OFWs, but also to push the potential of tourism in the Philippines, making transportation expenses lighter to tourists.

“As CEB develops long-haul routes and opens new destinations for the Philippine flag carrier, we will be creating an important enabler for increased trade, tourism, and foreign investments,” said Gokongwei.

Starting the third quarter of 2013, CEB will be flying to some destinations outside of Asia. At present, though the company is still working on to complete necessary requirements for flying rights and permits from respective destinations.

Gokongwei however, did not divulge CEB’s first target destinations to be opened by the third quarter of next year, saying it will be properly announced once the flying permits and other necessary papers will be released.

Initially, the company will spend about US$900 for the 12-year leasing agreement of four brand-new A330 aircraft of which operations will start by the third quarter next year.

By 2016, CEB will be maintaining a total of eight A330 aircraft with seat capacity of over 400 passengers each.

These kind of fleet can fly up to a maximum of 11-hour flight.

“We are serving cities where large Filipino communities reside. Data indicates that more than half of Filipinos deployed in these regions take multiple stops and connecting flights because no home carrier can fly them there non-stop,” he said.

In short term though, he said that there is no plan yet of opening the long-haul service from Cebu.

Part of the company’s vision in entering the long-haul market is also for Filipinos to affordably travel anywhere in the world.

He is confident that the Philippines will be able to resolve airport security issues with major markets such as US and Europe as the Civil Aeronautics Board (CAB) in the Philippines is doing well in their current negotiations in addressing the issue.

This move, is expected to open up employment opportunity of about 500 more people, said Gokongwei, this will add to the already 2,600 CEB team members.

CEB operates the most extensive network in the Philippines with 34 domestic destinations and hubs in Manila, Cebu, Clark and Davao. It also offers 19 international destinations, namely Bangkok, Beijing, Brunei, Busan, Guangzhou, Hanoi, Ho Chi Minh, Hong Kong, Incheon (Seoul), Jakarta, Kota Kinabalu, Kuala Lumpur, Macau, Osaka, Shanghai, Siem Reap, Singapore, Taipei and Xiamen. – (FREEMAN)