Monday, October 09, 2006
Cebu Pacific starts Manila-GenSan route
THE inaugural flight of Cebu Pacific to this city from Manila went on as scheduled despite bad weather Monday last week.
Cebu Pacific's entry here, which was warmly welcomed by government and business leaders, brought to three the daily flights to and from Manila.
Daily flights since the United States Agency for International Development Agency-funded airport started operations in the mid 1990s have been serviced by Philippine Airlines and Air Philippines.
Mayor Pedro Acharon Jr., expressed optimism that Cebu Pacific's entry will boost the chances of the locality to lure more investors and tourists.
"This is another cap on our feather. The entry of Cebu Pacific gives the signal of our growth that we hope would not be lost to the eyes of interested investors," he said.
Lance Y. Gokongwei, Cebu Pacific president and chief executive officer, earlier said they will render daily flights from Manila to this city.
"We are confident that our entry into this market will once again bring down the fares significantly. Now, the people in General Santos and its nearby towns will have a low-fare alternative with Cebu Pacific," Gokongwei said in a statement.
Cebu Pacific's maiden flight, through an Airbus A-319 which has a capacity of 150 passengers, touched down here around 3:57 p.m., delayed by more than 30 minutes from the scheduled 3:20 p.m. arrival.
It has a cargo load capacity of four tons, according to Cebu Pacific insider.
Gokongwei said that the launch of its Manila-General Santos service is part of the airline's expansion program.
General Santos is the 19th domestic destination of Cebu Pacific and the second in Central Mindanao.
"Cebu Pacific's vision is to bring air travel closer to more Filipinos. As we expand our operations and open new markets, we will continue to offer the lowest fares in the destinations we fly to," Gokongwei said.
The company introduced its Manila-General Santos service with a seat sale fare of only P99 one-way. The sale started August 29 up to September 5 and is good for travel from October 2 to December 15, 2006.
After the seat sale, the year-round 'Go' fares to General Santos start at only P868 one-way, almost 60% lower than the current regular airfare. The promo and "Go" fares are exclusive of regular surcharges and government tax.
The company charges P1,400.68 for taxes and fuel surcharges, which means the year-round "Go" fares would just be at P2,268.68.
Orman Manansala, a local bank manager here, said the entry of Cebu Pacific would augur well to ordinary passengers.
"This will definitely start massive adjustments in the fare rate which has long been our complaint. For me competition is always good, the customer benefits. Gensan will also benefit because we will be more accessible and rates will be affordable," he said in a text message.
Jose Emmanuel Santos, president of Santa Cruz Seafoods, Inc., said the entry of Cebu Pacific would surely spell competition and in effect would make freight rates competitive between other southeast ASEAN tuna suppliers.
"At present, among southeast ASEAN countries, the Philippines has the highest air freight rate to the United States," he said.
Current air freight charge from the Philippines to the United States, he added, is at least $3.70 per kilo.
Asked if by how much rate reduction tuna shipment from here to Manila, which serves as the transshipment point to other countries, could benefit, Mr. Santos projected that Cebu Pacific can easily give off 50% of the cargo fees.
"That is if you base it on their fare rates," he added.
Now on its 11th year, the airline also flies to Hong Kong and Seoul, South Korea. It started servicing Singapore last August 31.
Gokongwei said the airline has the youngest fleet in the Philippines and one of the youngest in Asia as it operates 11 brand new Airbus aircraft.
For Bisaya stories from General Santos.Click here. (This section is updated every Monday)
(October 9, 2006 issue)
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