“With the growth of the market (now) they are getting a big chunk (of the market),” Bautista said.
He said PAL is also serving the low-cost sector passengers, but low-cost carriers are dominating this market.
“They (budget airlines) were able to get people who use to travel by boat and bus (and that’s a big number) of passengers,” added Bautista.
Asked how many percent are these bus and boat passengers, Bautista said: “I can’t give you the exact figure but they are many.”
Records of the Civil Aeronautics Board (CAB) showed that domestic traffic already reached 5.15 million from January to June 2007 up by one million posted in 2006 with 4.15 million during the same period.
The number of domestic passengers traveling by air increased by 24.34 percent in the first half of this year compared to last year.
Gokongwei-owned Cebu Pacific cornered the bulk with 2.25 million passengers during the period.
PAL, on the other hand, carried 1.98 million passengers in the first six months of the year, from 1.97 million in the same period last year.
The airlines’ load factor was 80 percent while Air Philippines carried 544,340 passengers; Asian Spirit, 248,456; and Southeast Asian Airlines, 136,588 passengers.
CAB is also projecting the air industry to grow by seven percent by end of 2007.
Bautista, meantime, said aside from the low cost airlines, another competitor they see is the entry of subsidized carriers from abroad.
But he said PAL is looking now for ways to address the problem.
Last Thursday, the Securities and Exchange Commission (SEC) already approved the exit of PAL from its 10-year rehabilitation plan after showing evidence of its profitability. (MSN/Sunnex)
