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Saturday, November 19, 2005
Ledesma: PAL-Cebu Pacific dogfight
By Jun Ledesma
Sunbursts
AS I have predicted in this corner early this week, El Kapitan Lucio Tan of Philippine Airlines (PAL) didn't take the "predatory" pricing of Cebu Pacific Air (CPA) sitting down. We even said that if he will decide to counter the discounted rates of CPA it would be for the kill. What do you know? The piqued chairman went for the solar plexus by reducing PAL's value fares to levels lower than CPA's.
It seemed that taipan Tan didn't like some statements of Lance Gokongwei when his airline firm made the announcement about their rates' nosedive. Some people had the impression that one is the good man and the other guy the villain. I'm not sure about that, but it is fact that some radio commentators were all praises for Gokongwei.
I was telling my friends of my fears that CPA's action would precipitate into a price war, which will have serious repercussions. It seems my fears were unfounded after all. From where I sit, I now see a dogfight (close combat between aircraft or a ferocious struggle for supremacy between interested parties) fast developing.
I also feel vindicated for not being prepared to heap praises for CPA sensing that there must be a catch somewhere. This so-called value fares are what are up for grabs. An airline firm can allocate an X number of seats, let's say, four. When all these seats are taken, you go for the next available seats, maybe another four seats, the price of which is higher than the first four. The firm may have as many as value class fares as they want to bait the passengers. In the end, the passenger could be left with the regularly priced ticket.
Now, whom are we going to sing hosannas to? If you want an unsolicited advice, here's how to save on your fare on your next domestic flight:
* Schedule/plan your flight and buy your ticket 10 days before flight dates. The bigger the aircraft the more seats are available for value-priced tickets.
* Book well in advance. Travel peaks after December 13 or when Christmas vacation starts. If you are going anywhere this Christmas, get a booking. Chances are your travel agent will book you but an agent cannot hold on to your reservation at his or your own sweet time. Because of the volume of passengers who will be queuing to get their ticket, it's better that you buy yours early.
BTW, Rotary Club of Davao President Doming Duerme informed me that the "On-to-Beijing" trip has been moved to December 05 and returns to Davao City on December 10. RCD will be signing a sisterhood pact with the provisionary Rotary Club of Beijing. The RCD has requested Councilor Dads Mahipus, past president of the club, to make a power point presentation of Davao City during the fellowship meeting with the Beijing counterpart. In the light of the January 2006 Asean Tourism Forum, which will be held in January next year, it will be excellent indeed to have a few Chinese businessmen make a sneak preview of Davao City.
For Bisaya stories from Davao. Click here. (November 19, 2005 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
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