| Carrier: | CEBU Pacific Air
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| Headquarters: | Philippines
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| Founded: | 1996
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| Destinations: | 21
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| Bases: | Manila, Mactan-Cebu
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| Owners: | JG Summit Group
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| Listed: | Yes
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| Online Booking: | Yes
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| Website: | http://www.cebupacificair.com
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| Fleet | A320 2 + 2 on order
A319 10
| Overview - CEBU Pacific Air
Philippines leading LCC takes big steps Cebu Pacific, the Philippines second largest carrier and biggest low cost airline, made major strides towards profitability in 2005 and looks set to reap the rewards in 2006 and beyond.
The carrier recorded a small loss for parent JG Summit Holdings in 2005, mainly due to the high price of fuel that disproportionately punished its fleet of DC-9s. Since then, the airline has begun to enjoy the benefits of its wholesale refleeting exercise, under which it retired the last of its DC-9s in Jul-06 and has it currently operating ten A319s and two A320s, with a further two A320s due to arrive in 2007. The carrier estimates that the new aircraft burn 30% less fuel per seat than their elderly predecessors. Cebu Pacific has also undertaken aggressive pricing of its inventory, with its bargain Go fares aimed at introducing the time savings of air transport to a populace that has historically used – often day-long – ferry trips for domestic travel. The offerings success in stimulating traffic prompted Cebu Pacific to permanently price 30% of its seats at substantially lower levels.
Thanks to the low prices and increased frequencies on key domestic and regional routes (notably including Manila-Hong Kong and Manila-Singapore, the latter of which it relaunched Aug-06), the carrier has gained market share in the 40% range in the markets it serves.
Future bright for archipelagos low fares leader Cebu's recent strides at lowering operating costs and international expansion to destinations where overseas-based Filipinos work has positioned the carrier well for future profit growth. Parent JG Summit Group says it aims for the carrier to become the leading domestic airline and plans a 30-40% listing for 2008.
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