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Thursday, November 24, 2005
Cebu Pacific plans to implement low fare scheme in international flights
INTERNATIONAL travelers to and from the Philippines would soon experience the low and flexible fares recently introduced by Cebu Pacific (CEB).
CEB general manager Bong Mojica told a press conference at the Cebu City Marriott Hotel last Tuesday that CEB plans to introduce next year its discounted fare scheme to its international flights.
CEB flies to Hong Kong and Seoul, Korea.
Mojica airline was “overwhelmed” by the response of the traveling market to its new pricing scheme and revenue model, dubbed as “Go” fares, that is patterned after low-cost foreign airlines.
Surge
In just three days after CEB launched “Go” fares on Nov. 11, the airline saw a 90 percent surge in its flight bookings.
“The airline expects the surge (in bookings) to continue well after the holiday because the Go fares are available year round. From the volume of bookings we have been getting, it is obvious that we are not only encouraging people to fly more often but we are also seeing people fly for the first time.”
Passengers can avail of the Go fares, for as low as P688 one way, if they book early and if they are willing to travel during lean travel hours, such as in the middle of the week or early morning.
Aside from benefiting the traveling public, CEB’s flexible rate also allows the airline to maximize its resources and revenues.
Mojica said the new fare and pricing structure cuts operations cost and allows the firm to survive in an industry dependent on petroleum products.
“By selling discounted seats that otherwise would not be sold, especially during the lean months, CEB would be maximizing its revenues and smoothen some of the demand peaks and troughs of the seasonal airline business,” he said.
“With revenues and passenger loads, more stable throughout the year and with extra income from increased flight frequencies as demand goes up, CEB would be financially stronger and in a better position to serve the Filipino public,” he added.
To stabilize its operations cost, CEB is also replacing its DC9 32 and Boeing 757s with Airbus models. The airline is operating two Airbus vessels and expects to get two more next month and eight others next year.
“(Having) one kind of aircraft would…lower maintenance cost,” Mojica said.
To further cut cost, the company also increased use of its aircrafts, by having more flights. (JBN)
(November 24, 2005 issue)
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