Posts Tagged ‘Philippine Airlines’


[] Low-cost carriers were behind nearly all of the growth in the Philippine air travel sector over the last five years, Gokongwei-led Cebu Pacific said on Thursday.

Growth is being driven by low fares offered by low-cost carriers such as Cebu Pacific

Growth is being driven by low fares offered by low-cost carriers such as Cebu Pacific

At the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) Summit held in Davao last week, Cebu Pacific vice president for marketing and distribution Candice Iyog said 96 percent of the industry’s growth could be traced to the expansion of low-cost carriers.

Full-service carriers like Philippine Airlines, meanwhile, contributed just 4 percent to the sector’s growth.

“This is mainly driven by the low fares offered by low-cost carriers’s such as Cebu Pacific. By unbundling services such as baggage and meals, customers are given the choice to buy only the services they want to pay for,” Iyog said.

“Full-service or legacy carriers continue to bundle all their services into the fare, something new air travelers have rejected. Cebu Pacific continues to remain focused on stimulating travel demand in the Philippines. We’ve seen this in every market we operate,” she said.

Despite rising fuel costs, Iyog claimed that airline tickets are now 30 percent cheaper, on average, than they were 10 years ago.

Citing government data, she said one out of every two domestic passengers flew on budget airlines’s in 2006. In 2011, budget airlines’s dominated the domestic market with 76-percent market share, or three out of every four domestic passengers.

She said the effect of budget airlines’s on……

Read the full story Philippine Daily Inquirer…..



Paolo G. Montecillo


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San Miguel has agreed to buy a minority stake in Philippine Airlines (PAL), the country’s largest airline and low-cost carrier Air Philippines Corporation.

Philippine Airlines has been struggling amid rising fuel costs and weak demand.

Philippine Airlines has been struggling amid rising fuel costs and weak demand.

The deal is expected to provide Philippine Airlines with cash to upgrade its fleet.

San Miguel, a dominant player the food and drinks sector, has been expanding its business portfolio in a bid to meet its growth targets.

Meanwhile, PAL has been struggling amid rising fuel costs and weak demand.

The airline had posted a loss of $33.5m (£21m) for the three months to the end of December. At the same time, competition in the Philippine airline market has also increased with Cebu Air and AirAsia’s local affiliate offering cheaper flights to consumers.

San Miguel and Trustmark Holdings, the parent company of PAL, said the deal will help strengthen the airline’s operations.

“The new investment will allow the two airlines to strengthen operations and stay competitive with the implementation of PAL and Air Phil’s fleet modernization program,” the firms said in a joint statement….

Read the full story at BBC News….


BBC News
4th April 2012