Cebu Pacific News Archive

Cebu Pacific buys 12 brand-new Airbus aircraft, eyes No. 1 position

Cebu Pacific recently bought 12 brand-new Airbus 319 aircraft and leasing two A320s in a complete re-fleeting program meant to make CEB the country’s No. 1 domestic carrier in five years.

Lance Gokongwei, CEB president, said CEB signed with Airbus on September 2004 the agreement for the A319s.

He said CEB already has 38 percent of the market after only eight years of service and has the momentum to gain more market share and eventually the industry lead. “We are growing fast and this would double our capacity in terms of more seats and flights.”

“Once our re-fleeting is completed by early 2007, we shall have the youngest fleet in Asia, making us even more efficient and competitive,” he said.

“We will remain an on-time carrier. Our record is among the best in the world and way above the international norm. We want Cebu Pacific to be equated with punctuality wherever we fly,” he said.

Gokongwei also said the re-fleeting program, aside from being a strategic corporate move, is also a vote of confidence in the country.

“We are committed to the Philippines. We want to be a partner in its growth. This huge investment will make travel and tourism a more vibrant sector. It would also help push trade since CEB would have a bigger capacity to move cargo,” he said.

CEB is currently the biggest carrier from the Cebu hub, flying within Visayas and Mindanao in a loop service for regional passengers and tourists.

The Manila and Cebu hubs will see increased activity as CEB adds more local and foreign destinations to help spark a travel and tourism boom, said Bong Mojica, CEB general manager.

Mojica said the new 150-seat A319 is among the quietest and the most fuel-efficient in its class. Fuel represents an airline’s single biggest operational expense item.

The first A319 will be delivered in September 2005. The rest will follow in the intervening period ending in February 2007. They will replace the airline’s current fleet of DC9s, he said.

The two 179-seater A320s will be delivered in the second quarter of 2005 and eventually replace CEB’s current fleet of B757s, its current workhorse for its regional flights.

Funding for the re-fleeting will come from a combination of internally generated funds, export-credit agencies and sale-leasebacks.

CEB pioneered low fares and fun flights in the country in 1996. CEB is the second largest carrier in the Philippines, and will carry over 2.5 million passengers in 2004.