This article is about the airline based in the Philippines. It is not to be confused with Cathay Pacific.

Cebu Air, Inc., operating as Cebu Pacific (PSE: CEB), is a Philippine low-cost airline. Founded in 1988,[2] it is Asia's oldest low-cost airline.[6] It offers scheduled flights to both domestic and international destinations. The airline operates flights from a primary hub in Manila, two secondary hubs in Cebu and Davao,[7] and five focus cities in Cagayan de Oro,[8] Clark, Iloilo,[9] Kalibo,[10] and Zamboanga.[11]

History

Foundation and growth (1988–2006)

The airline was established on August 26, 1988. Republic Act No. 7151, which grants a legislative franchise to Cebu Air, Inc. to operate was approved on August 30, 1991.[12] It started operations on March 8, 1996, with its first flight from Manila to Cebu. Domestic services commenced following market deregulation by the Philippine government. The airline was subsequently acquired by JG Summit Holdings, which was at the time, owned by John Gokongwei. It temporarily ceased operations in February 1998 after being grounded by the government due to an accident that killed 104 people but resumed services later the next month following re-certification of its aircraft.[7] It initially started with 24 domestic flights daily among Metro Manila, Metro Cebu, and Metro Davao. By the end of 2001, its operations had grown to about 80 daily flights to 18 domestic destinations.

In the 2000s, Cebu Pacific was granted rights to operate international flights to the region, including Malaysia, Indonesia, Singapore, Thailand, South Korea, Hong Kong, and Guam. International flights were launched on November 22, 2001, with a twice-daily service to Hong Kong.[13] On March 1, 2002, it commenced thrice-weekly flights to Seoul.[14] Other regional flights were introduced and suspended later; however, including flights to Singapore (from November 6, 2002, to January 2003) and from Manila via Subic to Seoul (from December 2002) due in part to the effects of the SARS epidemic.[15]

The airline resumed its Manila–Singapore flights on August 31, 2006[16] and launched its direct flight from Cebu to Singapore on October 23, 2006, the first low-cost airline to serve the Cebu-Singapore-Cebu sector,[17] and in direct competition with Singapore Airlines' subsidiary SilkAir, CEB was the only Philippine carrier serving the Cebu-Singapore-Cebu route for years until Philippine Airlines resumed its direct service in 2017. The airline operates direct flights from Cebu to Hong Kong which commenced October 2, 2006, which also made CEB the only Philippine carrier to serve a Cebu-Hong Kong-Cebu route after PAL terminated its direct service and is now code-sharing with Cathay Pacific for this route.[18]

Cebu Pacific's plans to begin international flights from Clark were initially unsuccessful when its request was denied. The nations involved came to an agreement that Cebu Pacific would be only allowed to operate charter flights from Clark to the respective countries' airport(s). Only Singapore initially agreed to allow Cebu Pacific to fly scheduled flights from Clark to Singapore.[19] It later expanded its international routes from Clark to Cebu, Davao, Hong Kong, Macau, and Tokyo.[20]

Expansion and re-branding (2007–2020)

On November 12, 2007, Cebu Pacific announced Davao's Francisco Bangoy International Airport as its fourth hub. Cebu Pacific announced that it would initially fly internationally from Davao City to Singapore, Hong Kong and fly one domestic flight to Iloilo. Both direct services from Davao to Singapore and Iloilo commenced on May 8, 2008, while the service to Hong Kong commenced on May 9.[21] In late 2007, Cebu Pacific announced plans to launch non-stop flights to the United States West Coast, Houston, Texas and Chicago, Illinois by mid-2009.[22]

In August 2009, Cebu Pacific became the first airline in the Philippines to use social media. The airline created a fan page on Facebook and Twitter.[23]

In October 2010, the airline completed an initial public offering of 30.4% of outstanding shares. It raised ₱23.3 billion prior to an exercise of an overallotment option and was the largest IPO made by a low-cost carrier.[24]

In 2012, Cebu Pacific planned to commence international long-haul flights to the Middle East, the United States, Australia, and some parts of Europe using the Airbus A330-300.[25] The first long-haul flight commenced to Dubai, United Arab Emirates on October 7, 2013.[26] Cebu Pacific is also applying for rights for a daily service to Auckland, New Zealand.[27]

In June 2015, Cebu Pacific revealed its new logo that represents the colors of the Philippines and also symbolizes as an evolution of a low-cost pioneer.[28] The airline received its first Airbus A320 painted in the new livery on January 22, 2016.[29]

New hubs were also launched in the 2010s. In November 2012, Iloilo International Airport was designated as the airline's fifth hub and launched direct international flights to Hong Kong and Singapore in that month.[9] The airline launched Cagayan de Oro's Laguindingan Airport as its seventh hub in October 2017 and launched direct flights to Dumaguete and Caticlan from Cagayan de Oro.[8]

The airline through its subsidiary Cebgo launched flights to Basco, Batanes from March 27 to October 27, 2018.[30] On August 14 of the same year, the airline commenced thrice-weekly flights to Melbourne, Australia.[31]

COVID-19 pandemic (2020–present)

The COVID-19 pandemic impacted the operations of the airline and its regional subsidiary. During the enhanced community quarantine in Luzon from March to May 2020, several flights were cancelled. Due to low passenger demand, the airline laid off 1,300 employees in 2020,[32] and sent many aircraft to indefinite storage.[33] As travel demand recovers, it started rehiring retrenched employees in November 2021[32] and aims to restore its full workforce by 2023. By July 2022, the airline operated at 88% of pre-pandemic levels, with domestic operations being restored to 100% of pre-pandemic levels.[34]

Corporate affairs

Operations

Cebu Pacific has its headquarters at the Cebu Pacific Building along Domestic Road in Pasay City.[2] The airline is a subsidiary of JG Summit Holdings.

On May 28, 2008, Cebu Pacific was named as the world's number one airline in terms of growth. The airline was also ranked fifth in Asia for Budget Airline passengers transported and 23rd in the world. The airline carried a total of almost 5.5 million passengers in 2007, an increase of 57.4 percent from 2006.[35]

In 2010, Cebu Pacific became the Philippines' largest airline based on number of passengers flown on domestic and international routes. According to Civil Aeronautics Board data, Cebu Pacific flew 2.45 million total passengers in the first quarter of 2010, nearly 110,000 more than Philippine Airlines, which carried 2.34 million systemwide during the same period.[36][37]

In January 2011, Cebu Pacific flew its 50 millionth passenger.[38] The airline flew its 100 millionth passenger in January 2015,[39] its 150 millionth in October 2017,[40] and its 200 millionth passenger in March 2022.[41]

Business model

Cebu Pacific was originally positioned as a low-cost carrier, but the airline only transitioned to the low-cost model in 2005. In November 2005, Cebu Pacific reduced its air fares by half to increase the airline's revenue by twenty percent.[42] Following its transition to a low-cost model, the airline gained a significant increase in passengers.[43] Cebu Pacific President Lance Gokongwei said that the low fares aim to attract more people to travel by air.[42]

Partnerships

Cebu Pacific was the only Philippines-based member airline of Northwest Airlines' WorldPerks award travel program. WorldPerks offered regular travellers the ability to obtain free tickets, first-class upgrades on flights and other types of rewards. On August 1, 2006, Northwest and Cebu Pacific ended their mileage-accrual agreement.[citation needed] Cebu Pacific codeshares flights with Garuda Indonesia via Jakarta to Manila.

On May 16, 2016, Cebu Pacific became a founding member of the world's largest low-cost carrier alliance, Value Alliance.[44] It joined other pioneer members Singapore's Scoot, South Korea's Jeju Air, Thailand's Nok Air and NokScoot, Tigerair, Tigerair Australia, and Japan's Vanilla Air in the low-cost carrier network.[45] Cebu Pacific is also currently the only Philippine carrier which is a member of an airline alliance.

Financial and operational performance

This table shows the financial and operational performance of Cebu Pacific (each fiscal year ended December 31):

Cebu Pacific financial and operational performance[46]
Fiscal year Financial performance Operational performance
Revenue
(PHP billion) 		Net income
(PHP billion) 		Passengers
(million) 		RPK
(million) 		ASK
(million) 		Load factor
(%)
2008[47] 19.68 −3.26 6.67 5,653 7,365 78.0
2009[47] 23.31 3.26 8.76 7,056 9,369 77.4
2010[47] 29.09 6.92 10.46 8,860 10,379 85.4
2011[48] 33.94 3.62 11.93 10,531 12,369 86.3
2012 37.90 3.57 13.26 11,533 14,173 82.6
2013 41.00 0.51 14.35 12,927 16,207 81.9
2014 52.00 0.85 16.9 16,213 20,496 83.9
2015 56.50 4.39 18.38 19,872 19,872 82.6
2016 61.90 9.75 19.13 21,220 25,989 86.0
2017 68.03 7.9 19.75 21,301 26,233 84.0
2018 74.11 3.92 20.28 21,736 25,881 85.0
2019 84.81 9.12 22.47 24,883 29,298 86.0
2020 22.62 −22.24 5.03 5,275 7,107 76.0
2021 15.74 −24.90 3.41 7,107 4,878 61.0

Subsidiaries

Cebgo is the airline's regional subsidiary. It operates an all-turboprop fleet of ATR 72-600 aircraft and is used in regional domestic routes. It was founded in May 2015 following the acquisition of Tigerair Philippines by Cebu Pacific.[49]

Cebu Pacific Cargo operates two dedicated cargo turboprop aircraft. The airline announced in 2018 that it would enter the dedicated cargo market to support the increase in demand for logistics.[50]

Destinations

Main article: List of Cebu Pacific destinations

Cebu Pacific currently flies to 36 domestic destinations and 26 international destinations in 16 countries across the Asia Pacific region. The airline has the most extensive domestic route network in the Philippines.

Fleet

For the fleet of subsidiary Cebgo, see Cebgo § Fleet.

Current fleet

As of December 2022, Cebu Pacific operates an all-Airbus fleet composed of the following aircraft:[51][52]

Cebu Pacific fleet
Aircraft In service Orders Passengers[53] Notes
Airbus A320-200 19 — 180 Older aircraft are to be retired.[54][full citation needed]
Airbus A320neo 8 13 188
Airbus A321-200 7 — 230
Airbus A321neo 10 11 236[55] All aircraft in the Airbus Cabin Flex (ACF) configuration.[56]
Airbus A321XLR — 10 TBA Deliveries from 2024.[57]
Airbus A330-300 3 — 436
Airbus A330-900 4 12 459 Deliveries from 2021.[58]
Total 51 46

The airline previously operated a combined fleet of jet and turboprop aircraft. In 2007, Cebu Pacific ordered six ATR 72-500 turboprop aircraft for its regional domestic flights.[59] The ATR aircraft were transferred to its regional subsidiary Cebgo in 2015.[60] In the same year, Cebu Pacific ceased turboprop operations, while Cebgo ceased jet operations with the return of its last Airbus A320 to its parent company.[61]

As part of the airline's modernization, Cebu Pacific is replacing its existing aircraft with new fuel-efficient aircraft by 2028.[62] In addition, as part of the airline's environment initiatives, Cebu Pacific used sustainable aviation fuel (SAF) on its delivery flights, and tested SAF on a commercial passenger flight from Singapore to Manila on September 28, 2022.[63]

Fleet development

Airbus A320

In 2004, Cebu Pacific signed a purchase agreement with Airbus for the lease of two A320s and the acquisition of twelve A319s to replace its existing fleet of Boeing 757 and McDonnell Douglas DC-9 aircraft.[64] It later ordered seven additional A320s.[65] The A320s supported the airline's expanding international and domestic operations.[66]

Cebu Pacific received its first A320 in 2005, while the airline received its first A320neo in 2019. On June 18, 2019, Cebu Pacific announced an order for an additional five A320neos to replace the older Airbus A320-200.[67]

The A320 fleet currently flies to domestic and international regional destinations in Southeast Asia and East Asia.

Airbus A321

In June 2011, Cebu Pacific signed a memorandum of understanding for 30 Airbus A321neos including nine leased that will help the airline's growth and development. The deal was finalized in August 2011,[68] with deliveries commencing in 2017. However, due to problems with the Pratt & Whitney engines, the deliveries were delayed.[69] Instead, in June of that year, the airline ordered seven A321ceos to meet ongoing strong growth on its domestic and regional network.[70]

The first 230-seater A321ceo was delivered on March 22, 2018.[71] On January 20, 2019, the airline received its first 236-seater A321neo, registered as RP-C4118 and powered with Pratt and Whitney engines.[72] Like the A320, the A321 currently flies to domestic and international destinations.[71]

On June 18, 2019, Cebu Pacific ordered 10 A321XLRs. The airline is one of the few launch carriers of the newly launched long-range narrow-body aircraft.[67][73]

Airbus A330

In 2007, the airline ordered six A330-300s to operate Middle Eastern destinations such as Dubai; East Asia routes such as Beijing, Hong Kong, Seoul, Shanghai, Taipei, and Tokyo, and Southeast Asia routes such as Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Kuala Lumpur, and Singapore. It will also be used in the domestic sector, namely flights to Cebu, Davao, and General Santos. Cebu Pacific received its first A330-300 on June 15, 2013.[74] In 2016, the carrier then added two more A330s on its orders to complement earlier fleet in new long-haul routes, such as Sydney and Melbourne.[75]

On June 18, 2019, Cebu Pacific ordered 16 Airbus A330neos to replace the Airbus A330ceos.[76] The deal was finalized in November 2019.[77] On November 28, 2021, Cebu Pacific received its first 459-seater A330-900.[78][79]

Former fleet

Cebu Pacific retired fleet
Aircraft Total Introduced Retired Replacement Notes Refs
Airbus A319-100 10 2005 2018 Airbus A321neo Sold to Allegiant Air. [80]
ATR 72-500 6 2008 2015 None Transferred to Cebgo.
Boeing 757-200 3 2000 2006 Airbus A320-200 [64]
McDonnell Douglas DC-9-30 19 1996 2006 Airbus A320-200 [64]

Accidents and incidents

See also

References

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Media related to Cebu Pacific at Wikimedia Commons

source: https://en.wikipedia.org/wiki/Cebu_Pacific