Cebu Pacific and Tiger Air to Raise Fares, Adopt Common Booking System
As part of Cebu Pacific's new ownership of Tigerair Philippines, the two carriers are planning to adopt a common booking system in March that will represent the first phase of the strategic alliance between the two carriers.
According to Cebu Pacific, Tigerair Philippines flights will be available for booking on the Cebu Pacific website and through other booking channels beginning in mid-March. "The Cebu Pacific and Tigerair alliance offers the largest low cost network to and from the Philippines," said Lance Gokongwei, Cebu Pacific President & CEO. "As we enter the initial phase of the alliance, we will continue to leverage on our extensive route networks, flight frequencies and find ways to provide an even wider range of travel options for all of our customers."
He added that pending regulatory approvals, both airlines would be collaborating operationally and commercially on domestic and international flights to and from the Philippines. This is expected to create the largest network of flights serving the region. With the new alliance, Cebu Pacific will also be able to tap into the extensive Tigerair network in Singapore that carries passengers to a wide range of destinations including Australia, Myanmar, and India. Tigerair Philippines is expected to serve more domestic destinations and routes in North Asia.
Tigerair Philippines CEO Olive Ramos said that passengers will be able to expect a more dynamic low cost carrier. "This alliance will leave an indelible mark in the travel and tourism sector as we combine our strengths to deliver the best products and services to the travelling public," said Ramos. But passengers should also expect higher fares as the airline prepares to combat higher expenses resulting from the increasing cost of aviation fuel and the depreciation of the Peso.
In a petition filed last month, the airlines revealed that they would be raising fares by as much as 160 percent on both domestic and international routes. According to Jorenz Tañada, Cebu Pacific Vice President for Corporate Affairs, the airline has requested an upward adjustment of fuel surcharges. "Cebu Pacific requested for an upward adjustment of fuel surcharges due to increasing fuel uplift costs. These are expenses related to transferring fuel, on top of the prevailing jet fuel price," said Tañada. "These expenses have also been compounded by the weakening peso."
The Civil Aeronautics Board permits airlines to impose fuel surcharges on domestic and international sectors as a means to help recover losses from increasing jet fuel prices. The International Air Transportation Association Jet Fuel Price Monitor currently shows that the average price of jet fuel is $124.60 per barrel. Unfortunately, the value of the peso against the US dollar continues to weaken.
Under the recently filed petition, Cebu Pacific will be raising its fuel surcharges between 10 percent to 160 percent on 22 international routes from Cebu, Iloilo, Clark, and Manila.
Fuel surcharges are expected to be increased on the following flights from Ninoy Aquino International Airport in Manila:
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| Copyright Photo: Angelo Agcamaran/PPSG |
He added that pending regulatory approvals, both airlines would be collaborating operationally and commercially on domestic and international flights to and from the Philippines. This is expected to create the largest network of flights serving the region. With the new alliance, Cebu Pacific will also be able to tap into the extensive Tigerair network in Singapore that carries passengers to a wide range of destinations including Australia, Myanmar, and India. Tigerair Philippines is expected to serve more domestic destinations and routes in North Asia.
Tigerair Philippines CEO Olive Ramos said that passengers will be able to expect a more dynamic low cost carrier. "This alliance will leave an indelible mark in the travel and tourism sector as we combine our strengths to deliver the best products and services to the travelling public," said Ramos. But passengers should also expect higher fares as the airline prepares to combat higher expenses resulting from the increasing cost of aviation fuel and the depreciation of the Peso.
In a petition filed last month, the airlines revealed that they would be raising fares by as much as 160 percent on both domestic and international routes. According to Jorenz Tañada, Cebu Pacific Vice President for Corporate Affairs, the airline has requested an upward adjustment of fuel surcharges. "Cebu Pacific requested for an upward adjustment of fuel surcharges due to increasing fuel uplift costs. These are expenses related to transferring fuel, on top of the prevailing jet fuel price," said Tañada. "These expenses have also been compounded by the weakening peso."
The Civil Aeronautics Board permits airlines to impose fuel surcharges on domestic and international sectors as a means to help recover losses from increasing jet fuel prices. The International Air Transportation Association Jet Fuel Price Monitor currently shows that the average price of jet fuel is $124.60 per barrel. Unfortunately, the value of the peso against the US dollar continues to weaken.
Under the recently filed petition, Cebu Pacific will be raising its fuel surcharges between 10 percent to 160 percent on 22 international routes from Cebu, Iloilo, Clark, and Manila.
Fuel surcharges are expected to be increased on the following flights from Ninoy Aquino International Airport in Manila:
- Jakarta to $59 from $25 (136 percent increase)
- Macau to $33 from $15 (120 percent increase)
- Hong Kong to $30 from $15 (100 percent increase)
- Bandar Seri Begawan to $25 from $15 (67 percent increase)
- Kuala Lumpur to $39 from $25 (56 percent increase)
- Kota Kinabalu to $23 from $15 (53 percent increase)
- Taipei to $30 from $20 (50 percent increase)
- Bangkok to $48 from $30 (47 percent increase)
- Hanoi to $44 from $30 (47 percent increase)
- Shanghai to $51 from $37 (38 percent increase)
- Beijing to $68 from $50 (36 percent increase)
- Xiamen to $33 from $26 (27 percent increase)
- Siam Rep to $35 from $30 (17 percent increase)
- Narita to $55 from $50 (10 percent increase)
- Nagoya to $55 from $50 (10 percent increase)
Fuel surcharges are expected to increase on the following flights from Clark International Airport in Pampanga:
- Singapore to $41 from $20 (105 percent increase)
- Macau to $26 from $10 (160 percent increase)
- Hong Kong to $25 from $10 (150 percent increase)
- Singapore to $46 from $25 (84 percent increase)
- Bangkok to $56 from $35 (60 percent increase)
Fuel surcharges are expected to increase on the following flights from Iloilo International Airport:
- Singapore to $47 from $25
- Hong Kong to $34 from $25
Meanwhile, Tigerair Philippines will also be increasing fuel surcharges on both domestic and international routes. The airline is planning to impose an additional P100 increase on fuel surcharges on all of its domestic flights from Ninoy Aquino International Airport and Clark International Airport. This will affect flights bound for Bacolod, Cebu, Kalibo, Iloilo, Puerto Princesa, Tacloban, and Davao where the fuel surcharge will rise from P300 to P400 or from P400 to P500.
The following Tigerair Philippines international flights will also see an increase in fuel surcharges from Clark International Airport:
- Bangkok at $20 rather than P900
- Hong Kong at $10 rather than P500
- Singapore at $20 rather than P860
A new surcharge will also be imposed on new upcoming Tigerair flights from Cebu to Bangkok, Cebu to Singapore, and Kalibo to Hong Kong.
This was exactly what I predicted would happen when Cebu Pacific bought Tiger Airways. The reduced competition means they can now raise fares.
ReplyDeleteThe excuse that this is in response to a fall in the value of the Peso is nonsense. For a long time prior to that the Peso was increasing against the US$, which is the currency that fuel is purchased in. That never resulted in a reduction in fuel surcharges. Now that there's been a very slight decline in the Peso's value they claim this is justification to raise fuel surcharges by up to 160 percent.