Tigerair mulls flights to Korea

MANILA, Philippines - Low-cost carrier Tiger Airways Philippines, a unit of Gokongwei-led Cebu Air Inc. (Cebu Pacific), is set to mount flights to South Korea to accommodate the growing number of tourists visiting the Philippines.

In a Notice of Application, the Civil Aeronautics Board (CAB) said Tigerair Philippines has filed an application for designation as official Philippine carrier to Korea.

In April 2012, the Philippines and South Korea signed a new air services agreement allowing both countries to fly 28,500 passengers per week from the previous level of 19,000 passengers every week.

CAB executive director Carmelo Arcilla earlier said the Philippines is eyeing flight and seat entitlements to Korea which is the number one source of tourists.

South Korea was the major source of tourists for the Philippines last year with 1.17 million arrivals.

The budget airline spent $7 million to acquire the 40 percent share of Tiger Airways Singapore Pte Ltd and $8 million for the 60 percent owned by Filipino businessmen in Tigerair Philippines.

The purchase of 100 percent of Tigerair Philippines including the 40 percent stake of Tiger Airways Holdings Limited by Cebu Pacific  was completed last March 22.

Cebu Pacific is set to rename Tigerair Philippines to Go Air Inc.

Cebu Pacific currently operates over 2,200 flights per week with 51 aircraft to 24 international and 33 Philippine cities in its network while Tigerair Philippines currently operates about 118 flights per week with five aircraft to 11 domestic and international destinations from its bases in Manila and Clark.

By combining their resources, Cebu Pacific would be able to provide services to high growth markets including Australia, Myanmar, and India while Tigerair Philippines would be able to fly more passengers to additional cities in Cebu Pacific’s extensive network in the Philippines and North Asia.  

Cebu Pacific is in the middle of a $4 billion refleeting program aimed at acquiring 49 brandnew Airbus aircraft. It has a fleet of 51 aircraft composed of 10 A319, 30 Airbus A320, three Airbus A330, and eight ATR-72 500 aircraft.

It expects the delivery of 12 A320, 30 A321neo, and three A330 between 2014 and 2021.