TOULOUSE, France – Budget airline Cebu Air Inc. (Cebu Pacific) of taipan John L. Gokongwei Jr. is pursuing its massive re-fleeting program as it is in the midst of acquiring eight widebody Airbus aircraft to kick-off its long-haul operations starting October.
Alex Reyes, general manager for the Long-Haul Division of Cebu Pacific, yesterday received the delivery of a new Airbus A330-300 from Airbus through a lease agreement with CIT Aerospace.
“Our fleet plan is originally eight A330-300 aircraft but what we have signed for is four. We will look for leases as well for the remaining four. Our general strategy is to buy as well, but leasing gives you the flexibility to add or adopt,†he stressed.
Reyes told Filipino journalists here that the listed budget airline has inked lease agreements with the unit of CIT Group Inc. involving four A330-300 aircraft, the first of which is expected to arrive in the Philippines today.
The second of the four Airbus A330-300 aircraft powered by Rolls-Royce Trent 772B engines is expected to be delivered in September this year, while the third is expected to arrive in the first quarter and the fourth by the second quarter of next year.
He pointed out that the first aircraft would be used for short-haul routes particularly Manila–Singapore and Manila –Incheon.
The second aircraft to be delivered in September would be used for its Manila-Dubai flights scheduled to start on Oct. 7, while the third and fourth A330-300 aircraft could be used for flights to Australia and Saudi Arabia.
“Anywhere where there is a big Filipino community we will fly there. Obviously one is Saudi Arabia which is on our radar screen. Anywhere in the Middle East there are a lot of Filipinos so we will fly there,†Reyes added.
On top of the eight A330-300 aircraft, he said the airline has also made firm orders for 30 Airbus A321neo as well as 17 more Airbus A320 between 2013 and 2021. The budget airline has a fleet of 44 aircraft consisting of 10 Airbus A319, 25 Airbus A320, eight ATR-72 500 aircraft, and the new A330-300.
The massive re-fleeting program is being pursued amid the congestion in various airports in the Philippines particularly in the 30-year old Ninoy Aquino International Airport (NAIA).
“Slot is still a concern for Philippine aviation sector. In the Manila market we cannot launch new flights out until we get slot approvals. It is a concern for the entire aviation industry, not just Cebu Pacific but all carriers,†Reyes said.
According to the CebuPac him, the Aquino administration is looking at solutions for the congestion at the NAIA as well as other airports across the Philippines including rapid exit taxiways as well as the transfer of the general aviation involving small private aircraft to Sangley Point in Cavite.
“The government is looking for ways to increase runway capacity. It is not the terminals but the runway capacity or the number of movements per hour,†he said.
For his part, Cebu Pacific president and chief executive officer Lance Gokongwei said the airline’s first widebody aircraft marks the company’s commitment for its long-haul services.
“The delivery of our first widebody aircraft marks a milestone for Cebu Pacific. The addition of the highly efficient A330 to our fleet ultimately translates to unbeatable operating costs, enabling us to offer the lowest possible fares to our guests. In addition, we will be the only Filipino carrier flying non-stop between Manila and Dubai, eliminating multiple stops or connecting flights,†Gokongwei said.
Cebu Pacific booked a 20.2-percent jump in net income to P1.16 billion in the first quarter of the year from P962.4 million in the same quarter last year on the back of higher passenger volume, cheaper fuel costs, and increase in average fares.
Higher passenger and cargo volumes also pushed the airline’s revenues 12.9 percent to P10.54 billion in the first quarter of the year from P9.34 billion in the same quarter last year.
Cebu Pacific, with 34 domestic and 22 international destinations across Asia, reported that volume of passengers inched up by 4.9 percent to 3.5 million in the first quarter from 3.4 million in the same quarter last year, while number of flights increased 4.8 percent as the number of aircraft went up to 43 from 40.