Cebu Pacific Air

Cebu Air, Inc., operating as Cebu Pacific (), is a low-cost airline of the Philippines. Founded in 1988, it is Asia's oldest low-cost airline. It offers scheduled flights to both domestic and international destinations. The airline operates flights from a primary hub in Manila, two secondary hubs in Cebu and Davao, and five focus cities in Cagayan de Oro, Clark, Iloilo, Kalibo, and Zamboanga.

History

Foundation and growth (1988–2006)

The airline was established on August 26, 1988. Republic Act No. 7151, which grants a legislative franchise to Cebu Air, Inc. to operate was approved on August 30, 1991. It started operations on March 8, 1996, with its first flight from Manila to Cebu. Domestic services commenced following market deregulation by the Philippine government. The airline was subsequently acquired by JG Summit Holdings, which was at the time, owned by John Gokongwei. It temporarily ceased operations in February 1998 after being grounded by the government due to an accident that killed 104 people but resumed services later the next month following re-certification of its aircraft. It initially started with 24 domestic flights daily among Metro Manila, Metro Cebu, and Metro Davao. By the end of 2001, its operations had grown to about 80 daily flights to 18 domestic destinations.

In the 2000s, Cebu Pacific was granted rights to operate international flights to the region, including Malaysia, Indonesia, Singapore, Thailand, South Korea, Hong Kong, and Guam. International flights were launched on November 22, 2001, with a twice-daily service to Hong Kong. On March 1, 2002, it commenced thrice-weekly flights to Seoul. Other regional flights were introduced and suspended later; however, including flights to Singapore (from November 6, 2002, to January 2003) and from Manila via Subic to Seoul (from December 2002) due in part to the effects of the SARS epidemic.

The airline resumed its Manila–Singapore flights on August 31, 2006 and launched its direct flight from Cebu to Singapore on October 23, 2006, the first low-cost airline to serve the Cebu-Singapore-Cebu sector, and in direct competition with Singapore Airlines' subsidiary SilkAir, CEB was the only Philippine carrier serving the Cebu-Singapore-Cebu route for years until Philippine Airlines resumed its direct service in 2017. The airline operates direct flights from Cebu to Hong Kong which commenced October 2, 2006, which also made CEB the only Philippine carrier to serve a Cebu-Hong Kong-Cebu route after PAL terminated its direct service and is now code-sharing with Cathay Pacific for this route.

Cebu Pacific's plans to begin international flights from Clark were initially unsuccessful when its request was denied. The nations involved came to an agreement that Cebu Pacific would be only allowed to operate charter flights from Clark to the respective countries' airport(s). Only Singapore initially agreed to allow Cebu Pacific to fly scheduled flights from Clark to Singapore. It later expanded its international routes from Clark to Cebu, Davao, Hong Kong, Macau, and Tokyo.

Expansion and re-branding (2007–2020)

On November 12, 2007, Cebu Pacific announced Davao's Francisco Bangoy International Airport as its fourth hub. Cebu Pacific announced that it would initially fly internationally from Davao City to Singapore, Hong Kong and fly one domestic flight to Iloilo. Both direct services from Davao to Singapore and Iloilo commenced on May 8, 2008, while the service to Hong Kong commenced on May 9. In late 2007, Cebu Pacific announced plans to launch non-stop flights to the United States West Coast, Houston, Texas and Chicago, Illinois by mid-2009.

In August 2009, Cebu Pacific became the first airline in the Philippines to use social media. The airline created a fan page on Facebook and Twitter.

In October 2010, the airline completed an initial public offering of 30.4% of outstanding shares. It raised prior to an exercise of an overallotment option and was the largest IPO made by a low-cost carrier.

In 2012, Cebu Pacific planned to commence international long-haul flights to the Middle East, the United States, Australia, and some parts of Europe using the Airbus A330-300. The first long-haul flight commenced to Dubai, United Arab Emirates on October 7, 2013. Cebu Pacific is also applying for rights for a daily service to Auckland, New Zealand.

In June 2015, Cebu Pacific revealed its new logo that represents the colors of the Philippines and also symbolizes as an evolution of a low-cost pioneer. The airline received its first Airbus A320 painted in the new livery on January 22, 2016.

New hubs were also launched in the 2010s. In November 2012, Iloilo International Airport was designated as the airline's fifth hub and launched direct international flights to Hong Kong and Singapore in that month. The airline launched Cagayan de Oro's Laguindingan Airport as its seventh hub in October 2017 and launched direct flights to Dumaguete and Caticlan from Cagayan de Oro.

The airline through its subsidiary Cebgo launched flights to Basco, Batanes from March 27 to October 27, 2018. On August 14 of the same year, the airline commenced thrice-weekly flights to Melbourne, Australia.

COVID-19 pandemic (2020–present)

The COVID-19 pandemic impacted the operations of the airline and its regional subsidiary. During the enhanced community quarantine in Luzon from March to May 2020, several flights were cancelled. Due to low passenger demand, the airline laid off 1,300 employees in 2020, and sent many aircraft to indefinite storage. As travel demand recovers, it started rehiring retrenched employees in November 2021 and aims to restore its full workforce by 2023. By July 2022, the airline operated at 88% of pre-pandemic levels, with domestic operations being restored to 100% of pre-pandemic levels.

Corporate affairs

Operations

Cebu Pacific has its headquarters at the Cebu Pacific Building along Domestic Road in Pasay City. The airline is a subsidiary of JG Summit Holdings.

On May 28, 2008, Cebu Pacific was named as the world's number one airline in terms of growth. The airline was also ranked fifth in Asia for Budget Airline passengers transported and 23rd in the world. The airline carried a total of almost 5.5 million passengers in 2007, an increase of 57.4 percent from 2006.

In 2010, Cebu Pacific became the Philippines' largest airline based on number of passengers flown on domestic and international routes. According to Civil Aeronautics Board data, Cebu Pacific flew 2.45 million total passengers in the first quarter of 2010, nearly 110,000 more than Philippine Airlines, which carried 2.34 million systemwide during the same period.

In January 2011, Cebu Pacific flew its 50 millionth passenger. The airline flew its 100 millionth passenger in January 2015, its 150 millionth in October 2017, and its 200 millionth passenger in March 2022.

Business model

Cebu Pacific was originally positioned as a low-cost carrier, but the airline only transitioned to the low-cost model in 2005. In November 2005, Cebu Pacific reduced its air fares by half to increase the airline's revenue by twenty percent. Following its transition to a low-cost model, the airline gained a significant increase in passengers. Cebu Pacific President Lance Gokongwei said that the low fares aim to attract more people to travel by air.

Partnerships

Cebu Pacific was the only Philippines-based member airline of Northwest Airlines' WorldPerks award travel program. WorldPerks offered regular travellers the ability to obtain free tickets, first-class upgrades on flights and other types of rewards. On August 1, 2006, Northwest and Cebu Pacific ended their mileage-accrual agreement. Cebu Pacific codeshares flights with Garuda Indonesia via Jakarta to Manila.

On May 16, 2016, Cebu Pacific became a founding member of the world's largest low-cost carrier alliance, Value Alliance. It joined other pioneer members Singapore's Scoot, South Korea's Jeju Air, Thailand's Nok Air and NokScoot, Tigerair, Tigerair Australia, and Japan's Vanilla Air in the low-cost carrier network. Cebu Pacific is also currently the only Philippine carrier which is a member of an airline alliance.

Financial and operational performance

This table shows the financial and operational performance of Cebu Pacific (each fiscal year ended December 31):

Subsidiaries

Cebgo is the airline's regional subsidiary. It operates an all-turboprop fleet of ATR 72-600 aircraft and is used in regional domestic routes. It was founded in May 2015 following the acquisition of Tigerair Philippines by Cebu Pacific.

Cebu Pacific Cargo operates two dedicated cargo turboprop aircraft. The airline announced in 2018 that it would enter the dedicated cargo market to support the increase in demand for logistics.

Destinations

Cebu Pacific currently flies to 36 domestic destinations and 26 international destinations in 16 countries across the Asia Pacific region. The airline has the most extensive domestic route network in the Philippines.

Fleet

Current fleet

, Cebu Pacific operates an all-Airbus fleet composed of the following aircraft:

The airline previously operated a combined fleet of jet and turboprop aircraft. In 2007, Cebu Pacific ordered six ATR 72-500 turboprop aircraft for its regional domestic flights. The ATR aircraft were transferred to its regional subsidiary Cebgo in 2015. In the same year, Cebu Pacific ceased turboprop operations, while Cebgo ceased jet operations with the return of its last Airbus A320 to its parent company.

As part of the airline's modernization, Cebu Pacific is replacing its existing aircraft with new fuel-efficient aircraft by 2028. In addition, as part of the airline's environment initiatives, Cebu Pacific used sustainable aviation fuel (SAF) on its delivery flights, and tested SAF on a commercial passenger flight from Singapore to Manila on September 28, 2022.

Fleet development

Airbus A320

In 2004, Cebu Pacific signed a purchase agreement with Airbus for the lease of two A320s and the acquisition of twelve A319s to replace its existing fleet of Boeing 757 and McDonnell Douglas DC-9 aircraft. It later ordered seven additional A320s. The A320s supported the airline's expanding international and domestic operations.

Cebu Pacific received its first A320 in 2005, while the airline received its first A320neo in 2019. On June 18, 2019, Cebu Pacific announced an order for an additional five A320neos to replace the older Airbus A320-200.

The A320 fleet currently flies to domestic and international regional destinations in Southeast Asia and East Asia.

Airbus A321

In June 2011, Cebu Pacific signed a memorandum of understanding for 30 Airbus A321neos including nine leased that will help the airline's growth and development. The deal was finalized in August 2011, with deliveries commencing in 2017. However, due to problems with the Pratt & Whitney engines, the deliveries were delayed. Instead, in June of that year, the airline ordered seven A321ceos to meet ongoing strong growth on its domestic and regional network.

The first 230-seater A321ceo was delivered on March 22, 2018. On January 20, 2019, the airline received its first 236-seater A321neo, registered as RP-C4118 and powered with Pratt & Whitney engines. Like the A320, the A321 currently flies to domestic and international destinations.

On June 18, 2019, Cebu Pacific ordered 10 A321XLRs. The airline is one of the few launch carriers of the newly launched long-range narrow-body aircraft.

Airbus A330

In 2007, the airline ordered six A330-300s to operate Middle Eastern destinations such as Dubai; East Asia routes such as Beijing, Hong Kong, Seoul, Shanghai, Taipei, and Tokyo, and Southeast Asia routes such as Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Kuala Lumpur, and Singapore. It will also be used in the domestic sector, namely flights to Cebu, Davao, and General Santos. Cebu Pacific received its first A330-300 on June 15, 2013. In 2016, the carrier then added two more A330s on its orders to complement earlier fleet in new long-haul routes, such as Sydney and Melbourne.

On June 18, 2019, Cebu Pacific ordered 16 Airbus A330neos to replace the Airbus A330ceos. The deal was finalized in November 2019. On November 28, 2021, Cebu Pacific received its first 459-seater A330-900.

Former fleet

Accidents and incidents

*On February 2, 1998, Cebu Pacific Flight 387, a McDonnell Douglas DC-9-30 flying from Manila to Cagayan de Oro, crashed on the slopes of Mount Sumagaya in Misamis Oriental, killing all 104 people on board during its approach to Lumbia Airport.
*On July 28, 2010, Cebu Pacific Flight 509, an ATR 72-500, bounced while landing at Manila after a flight from Tuguegarao Airport. The pilots performed a go-around and discovered that they could not retract the landing gear. The plane made a priority landing on runway 13. The aircraft (RP-C7254) was declared a hull loss.
*On June 2, 2013, Cebu Pacific Flight 971, an Airbus A320-200 registered as RP-C3266 and carrying 165 passengers inbound from Manila, ran off the runway at Francisco Bangoy International Airport and investigators have found the cause was likely human error. There were no fatalities, however, the plane was heavily damaged. In 2014, the plane returned to service after six months of repairs and maintenance checks.
*On August 4, 2017, Cebu Pacific Flight 570, an Airbus A330-300 registered as RP-C3341, due to a nosegear fault, went off the runway stopping on soft ground while taxiing for departure at Mactan–Cebu International Airport. There were no injuries, however, the aircraft incurred minor damage. The runway was closed until the aircraft was moved back on to a paved surface. It was rated as an Incident by CAAP and is under investigation.
*On October 13, 2017, Cebu Pacific Flight 461, an Airbus A320-200 registered as RP-C3237, veered to the side of the runway at Iloilo International Airport. No injuries were reported.
*On April 23, 2018, Cebu Pacific Flight 849, an Airbus A320-200 registered as RP-C4105, flew from Manila to Zamboanga with 172 people on board, safely landed on Zamboanga's runway and was about to turn around at the turning pad at the end of the runway when the flight crew stopped the maneuver due to a nose gear steering fault. The entire airport was closed for about three hours until the aircraft could be moved to the apron.

See also

* List of airlines of the Philippines
* List of airports in the Philippines
* List of companies of the Philippines
* List of low-cost airlines
* Transportation in the Philippines

References

External links

Official websiteOfficial holidays website

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