Cebu Pacific Places Order For Sixteen ATR Aircraft

Cebu Pacific, the nation's largest low-cost carrier, has announced that it has placed an order valued at US$673 million for sixteen ATR 72-600 aircraft at the Paris Airshow. The order will effectively double Cebu Pacific's fleet of turbo-prop aircraft enabling the carrier to expand inter-island flights in the Philippines.

atr 72-600 cebu pacific
Image Source: Cebu Pacific
According to airline officials, the order includes options to purchase an additional ten aircraft from the European turbo-prop manufacturer. Deliveries of the new aircraft are expected to begin in the third quarter of 2016. 

Cebu Pacific will be the launch customer for ATR's high density Armonia cabin, which features 78 slim-line seats and wider overhead bins. Passengers will enjoy 30 percent additional storage space for hand-carried luggage and the widest cabin of all turboprop aircraft. The new cabin is designed to enhance the space and comfort of passengers. 


Image Source: ATR
Cebu Pacific currently operates a fleet of eight ATR 72-500 aircraft. These aircraft will be retired as the new ATR 72-600 aircraft enter service as part of Cebu Pacific's fleet renewal program. When complete, Cebu Pacific will boast one of the youngest and most modern fleets in Asia. 

The ATR 72-600 aircraft is the most popular turbo-prop in the Asia-Pacific region with more than 55 airlines operating the aircraft. Because it offers the lowest operating costs per seat mile, which leads to lower fuel and maintenance costs, it is an ideal fit for budget carriers like Cebu Pacific that can pass the savings onto their customers in the form of low fares.


atr 72-500 cebu pacific
Copyright Photo: Angelo Agcamaran/PPSG
According to Lance Gokongwei, CEO of Cebu Pacific, the ATR aircraft has enabled the budget carrier to bring affordable air service to smaller cities and islands around the country. "We have been operating ATR aircraft since 2008, and they have enabled us to bring safe, reliable, and affordable air transport to smaller cities and islands throughout the Philippines," said Gokongwei. "This order is an affirmation of our commitment to extend the convenience of affordable air travel to even more communities. We are very pleased to be the launch customer of this new configuration of the ATR 72-600, as this will allow us to offer our customers more seats at even lower fares."

Cebu Pacific plans to use the new aircraft to meet the rising demand for inter-island flights in the Philippines. ATR aircraft enjoy an advantage in the Philippines for their ability to take off and land from short runways, which are found throughout the country, especially in smaller markets.

atr cebu pacific
Image Source: ATR
The versatility of the turboprop aircraft will enable Cebu Pacific to expand their operations not only at primary airports but also at smaller regional airports around the country, which may not even have existing air service. Cebu Pacific has long been an advocate for the development of regional transportation and tourism in the Philippines and the ATR aircraft plays a critical role in fulfilling that vision.  

As market conditions improve in the Philippines, the latest order of aircraft from Cebu Pacific will help position the budget carrier to match demand with supply as domestic air travel increases. Cebu Pacific along with its affiliate, Cebgo, already control a commanding 60 percent share of the Philippine domestic market. That compares to just 30 percent less than ten years ago.

atr model cebu pacific
Image Source: ATR
According to the Center for Asia Pacific Aviation, the prospects of Cebu Pacific's domestic operation continue to look bright with on-going favourable market conditions. Although Philippine Airlines is pursuing some domestic expansion, it is not enough to have any sort of significant impact on Cebu Pacific. 

It remains unlikely at this point that anything will dent Cebu Pacific's dominant position in the domestic market. It is more likely that the carrier's domestic share will exceed 60 percent in 2015 and rise further with the arrival of the ATR aircraft in 2016, which will add new domestic capacity. In addition to the ATR order, Cebu Pacific is expecting delivery of seven A320 and thirty A321neo aircraft between 2015 and 2021 as part of its fleet renewal program. 

8 comments:

  1. Yahoo mr.hongkong,yahoooooo!
    Cebu pacific,your beloved airline is calling!

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    1. I suspect Mr Hong Kong the businessman is too busy in his sari sari store to reply

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    2. Hey punk, i am a businessman who has many assets under his belt. Don't say to me that i run a sari sari store.

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  2. Dear CP, If you plan to acquire additional aircraft, no matter what model, please don't MISTAKE your economy class passengers as either "Cattle or Sardine Class Pax". Remember the U.S. and European carriers were concerned about "Deep Vein Thrombosis" as a serious health concern while traveling. Take care of both your passengers and employees. Improve your in-flight entertainment with IFEs with USB ports in every seat just like when the A350 visited MNL recently. Your medium and long-range jets should have decent legroom & recline, warm hospitality and other amenities. Possibly a premium economy class cabin. If CP desires to be both a favorite LCC and a WORLD CLASS carrier and to hopefully someday outrank Air Asia as BEST LCC just do your best in all facets of your business. It will be a WIN-WIN for the company, the employees and especially retain loyal customers and gain new ones. Best wishes at MABUHAY!

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    1. For 1 peso fare, i don't care if there's no legroom, no IFE, no USB etc.. heck i'll stand up if it's legal. Premium airlines are there to satisfy people with money to spare. CEB are doing Filipinos a favor by allowing ordinary people expand their way of thinking through travel.

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    2. Anonymous....you are missing the point. That is not the business model of Cebu Pacific. If you are looking for IFEs, USB port, Premium ECY class, legroom....then transfer to a legacy airlines. You are barking at the wrong effing tree...or should I say airlines.

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  3. I was on an SAS flight from dublin to stockholm a couple of years back. I think it was an old MD 80, you pay for your food and drinks, no IFE, legroom was abysmal and I paid around 250 feckin euro for the privilege. Wanna take a legacy airline? At least with CEB you get what you pay for, and that's good enough for me

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  4. I agree with the comment above. On CEB you get what you pay for so why grumble. I fly on CEB as often as possible and am quite prepared to put up with a little discomfort for a few hours to save thousands of $ each year. CEB is one of Asia's most successful LCC's

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