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MANILA, Philippines – Gokongwei-led low cost carriers Cebu Pacific Air Inc (Cebu Pacific) and Tiger Airways Philippines posted double-digit passenger volume growth in the first 8 months of 2014, attributed to newly-launched routes and aircraft acquisition.
Cebu Pacific and Tigerair Philippines flew 11.26 million passengers from January to August – 14.6% higher than the 9.83 million passengers in the same period in 2013.
The growth is attributed to the number of aircrafts the budget carrier now has – 50 versus last year’s 46, resulting to a 13.7% increase in capacity to 13.34 million from 11.73 million. This translated to a higher load factor of 84.4% from the January to August period, versus 83.8% in the same period last year.
Cebu Pacific is in the middle of a $4 billion-refleeting program aimed at acquiring 49 brand new Airbus aircraft. Cebu Pacific expects the delivery of 11 more brand-new Airbus A320; 30 Airbus A321neo; and one Airbus A330 aircraft between 2014 and 2021.
The number of flights also went up by 5.2% to 81,838 in the first 8 months of 2014, from 77,812 for the same period in 2013.
In August 2014 alone, passenger volume by both airlines jumped 16.8% to 1.41 million from 1.21 million in the same month in 2013.
The number of flights went up by 10.6% to 10,705 from 9,682.
The launch of the new international routes, particularly to Japan and Dubai, contributed to the passenger volume growth, Cebu Pacific vice president for corporate communications Jorenz Tañada said.
Cebu Pacific and Tigerair made further progress on their interline agreement with the first interline flights available for sale on the Tigerair website from July 23, and available on the website of Cebu Pacific starting September.
The interline agreement created the biggest network of flights from the Philippines to the Asia Pacific region.
“The growth in passenger volume could also be attributed to the addition of Tigerair Philippines’ destinations in Cebu Pacific’s offerings,” Tañada added.
Both Cebu Pacific and Tigerair Philippines expect to fly 17 million passengers this year.
Cebu Pacific spent $7 million to acquire the 40% share of Tiger Airways Singapore Pte Ltd and $8 million for the 60% owned by Filipino businessmen in Tiger Airways Philippines. – Rappler.com
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