Cebu Pacific Awarded Asia Pacific LCC of the Year, Adds Cebu-Japan Flights

Cebu Pacific, the nation's largest low-cost carrier was awarded the 2014 Asia Pacific Low-Cost Carrier of the Year Award at the CAPA Awards for Excellence in Aviation, recently held in Singapore.

Copyright Photo: Angelo Agcamaran/PPSG

The awards are presented each year to airlines that have demonstrated success and provided leadership in the industry, particularly in adjusting to new environments. These carriers are innovating new strategies under challenging market conditions that will provide other air carriers with a potentially viable model for the future.

According to the Centre for Aviation's Executive Chairman, Peter Harbison, Cebu Pacific "endured a tumultuous period in its home market, but maintained its focus and reported its highest ever quarterly profit in 2Q2014 and had the highest operating profit margin in the Asian airline industry."

Cebu Pacific was also praised for the management of its new long-haul subsidiary. "The carrier has launched a long-haul operation which strategically improves its long-term position by opening up new markets, while quickly responding to challenges in this segment," said Harbison. 

Since launching its first long-haul route to Dubai in October 2013 and surviving some growing pains, Cebu Pacific has steadily grown its long-haul network using its A330-300 fleet to a number of cities including Dammam, Kuwait, Sydney, and Riyadh. 

CAPA added that Cebu Pacific has steadily grown its domestic market share to a commanding 60 percent. The carrier forged an alliance with Singapore based Tigerair Group earlier this year, recognizing the need to adapt as competition intensifies. In addition, it rapidly turned around its new subsidiary Tigerair Philippines after acquiring it in January 2014. 

"The Cebu Pacific team is honoured to be recognized by CAPA. We will continue to approach growth conservatively and responsibly in order to build a sustainable airline business," said Lance Gokongwei, President & CEO of Cebu Pacific. "Ultimately, this sustainability will allow us to expand to more destinations, making our low fares available to more people."

Meanwhile, the carrier recently announced that it would launch flights between Cebu and Tokyo as it attempts to strengthen its Cebu hub and build its presence in the Japanese market. Cebu Pacific will compete directly with Philippine Airlines, which currently offers two flights daily between Cebu and Tokyo's Narita airport. Cebu Pacific is scheduled to begin its new Tokyo flights on March 26, 2015. 

The flights will be operated four times weekly every Tuesday, Thursday, Saturday, and Sunday aboard one of the carrier's 179-seat Airbus A320 aircraft. When it begins the new flights, Cebu Pacific will become the only low-cost carrier operating the route with fares up to 60 percent lower than the competition. The news will benefit travellers as competition reduces airfares between the two countries.

"Cebu Pacific has a good track record of stimulating travel because of its low fares and network," said Candice Iyog, Vice President of Marketing & Distribution for Cebu Pacific. "With this direct access to Cebu, we hope more Japanese tourists will visit the Philippines, just in time for the Visit the Philippines Year 2015."

Cebu Pacific is banking on the new route to provide a more convenient option for Filipinos in the Visayas and Mindanao to visit Japan, but also greater access for the Japanese market to visit some of the country's most beautiful tourist spots via Cebu. 

From Mactan-Cebu Airport, travellers can access popular tourist destinations such as Boracay, Camiguin, Palawan, and Siargao. In addition, Cebu is also one of the country's most popular destinations, with seamless access to the neighbouring tourist destination of Bohol.