Cebu Pacific sees more expansion in China operations

The Philippines’ number one domestic flag carrier Cebu Pacific (CEB) sees more flights and frequencies into China, with the expected delivery of 15 Airbus A320 aircraft until 2014.

Fueled by promising passenger bases in Guangzhou and Shanghai, CEB VP for Marketing and Distribution Candice Iyog said, “While we do not have final destinations as of the moment, we are definitely studying the China market, and determining which cities we can soon offer our trademark low fares to.”

“The delivery of our new aircraft certainly gives us more opportunities for an expansion in our international network, especially in China,” she said.

CEB currently flies thrice weekly from Guangzhou to Manila, and daily from Shanghai to Manila. The lowest year-round ‘Go Lite’ fare for Guangzhou flights is CNY 280, while it is CNY 480 for Shanghai flights. Passengers with check-in luggage will add CNY 20 upon booking.

The low-cost carrier advantage

When asked how CEB positions itself in the China market, Iyog replied, “We are the leading domestic airline in the Philippines, overtaking our competitors by capturing more than 50% of the market share. On the domestic front, one out of every two Filipinos flies with Cebu Pacific.”

“This puts us in a position of offering more to our passengers, especially in terms of connecting flights, trademark seat sales such as the CNY 1 seat sale, and more frequencies,” she added.

According to an International Air Transport Association (IATA) forecast released last September saying that Asia-Pacific carriers will be the first to benefit from a reviving Asian economy. IATA also said that Asia-Pacific will become the world’s largest aviation market in the next two decades.

Iyog called this a promising forecast, especially since they are hoping to encourage more people in China to travel to the Philippines via Cebu Pacific.

“We offer rock-bottom air fares to destinations in the Philippines, be it Manila or Boracay or Palawan. With Cebu Pacific, international vacations become very affordable. Business travelers can also travel back and forth without spending a lot. Whenever we have our trademark seat sales in China, the response is very good. This prompts us to soon increase our international presence there,” she added.