Cebu Pacific News Archive

Cebu Pacific Maintains Its Claim Over South Korea Flights

Cebu Pacific has a perfected and vested right in the frequencies to South Korea and these cannot be taken away and given to Philippine Airlines without due process, the JG Summit-owned airline said.

It added that should its frequencies be transferred to PAL, it could be open to liabilities since it had executed contracts with South Korean companies in preparation for its scheduled service in March.

CAB awarded to Cebu Pacific three frequencies to South Korea last December 19. Cebu Pacific has informed the South Korean authorities of the CAB's approval of its thrice-a-week service to Seoul .

But Philippine Airlines, which opposed last year's negotiations for more frequencies, now wants two of these frequencies. Pending resolution of its request, it asked CAB last January 11 to temporarily lend to it the frequencies until Cebu Pacific starts its service.

Not satisfied with the temporary loan approved by the CAB, PAL also asked that the borrowed frequencies be given to it permanently. CAB will meet today, Monday, to decide on the issue.

Cebu Pacific said that if the Civil Aeronautics Board (CAB) yields to PAL, the remaining once-a-week service would not be viable and force Cebu Pacific to quit the route. This would make the designation of Cebu Pacific ineffectual.

On the other hand, PAL, which already has 13 frequencies, would have 15 weekly flights to South Korea and once again be the lone Philippine flag carrier on the route.

Cebu Pacific said this would violate the government policy of liberalization and deny the public the benefits of competition. The airline has been known for low fares and forcing other airlines to follow suit.

It also said PAL had lost its chance to seek CAB's reconsideration since it filed its motion only last January 9. Cebu Pacific said under the CAB rules, PAL had only 15 days from the December 19 Board approval or up to January 3 this year to do this. By January 4, the grant to Cebu Pacific, being uncontested, became final and a right which cannot be taken away summarily.

Besides, Cebu Pacific said PAL opposed the new frequencies when they were being negotiated last November. “It would be most unfair to give to PAL what it opposed initially and what Cebu Pacific worked hard for.”

It added that “reversals of effective grants by the Board would present an environment of vacillation and discourage domestic entrants into the aviation industry.”

PAL has been using its intent to help Cebu 's tourism industry as its reason for asking to effectively disenfranchise Cebu Pacific.

Cebu Pacific said if PAL really wants to help Cebu , it should shift some of its Manila-South Korea flights to Cebu and not try to win the hearts of Cebuanos at the expense of another company, a rival.

“PAL's deceptive do-good position is but an illusion to hide an ulterior motive for a desired undeserved gain and a return to its stranglehold on the route. The public must not forget that PAL only a few months ago did its best to block the negotiations for more frequencies from South Korea .

“The bottom line is it simply wants to make sure that Cebu Pacific will not be able to duplicate its successes in the domestic and Hong Kong markets,” Cebu Pacific said.