Cebu Pacific ‘leaps’ to Sydney

Noting that Cebu-Pacific’s long-haul potential is growing by “leaps and bounds,” company CEO and president Lance Gokongwei and Long Haul Division general manager Alex Reyes announced new flights to Sydney at a Crowne Plaza launch, as well as nonstop flights to Kuwait.

The Manila-Sydney route begins Sept. 9, four times a week (Monday, Tuesday, Thursday, Saturday) adding a fifth day, Wednesday, during Christmas season. Cebu Pacific will use its current long-haul carrier, the 436-seat A3-300.
“We’re excited about Sydney because currently there’s no low-cost carrier flying Manila to Sydney,” said Reyes during a launch that included an outback-geared Pinoy “Aussie” tourism guide.

“We know that once there’s a low-cost carrier on a route, traffic is going to grow by leaps and bounds.”

Gokongwei noted that since launching its Dubai route in October 2013, “prices have dropped 15 percent, up to 30 percent on a seat-sale basis. And in the first quarter of 2014, traffic from Manila-Dubai has really grown, by 30 percent.”

With an estimated 300,000 Filipinos living in Australia, Cebu Pacific is convinced the new routes will be profitable. “We know the presence of a large Filipino population stimulates traffic,” said Reyes. “It makes entry into that marketplace much easier. Filipinos there will want relatives to visit.”

Gokongwei echoed this: “Filipino population is concentrated in New South Wales, where Sydney is. That’s a big checkmark for us. As we’ve seen, once we know there’s a big Filipino population there, their relatives will want to visit, because… it’s free housing.”

At the same time, Reyes expects Australian tourist arrivals to “double or triple” with the low-fare Manila-Sydney route.  “There is potential for a large number of Australians to come to Philippines” with the DOT targeting Australia as a priority market.

Seats will be available from year-round one-way fares starting at P12,150 (all-in, taxes included) but can go as low as P4,999 during seat sales.

Asked why Australia was chosen as the latest long-haul destination, Reyes said, “It’s long been on our list. Trade has been growing robustly, but tourism potential both ways not fully reached.”

Sydney is regarded as a gateway point for a lot of Australian visitors. Besides the trademark Sydney Harbour Bridge and Sydney Opera House (a UNESCO World Heritage Site visited by seven million people a year), there are beach and day ferry destinations out of Sydney Harbour, such as Bondi Beach. Just a few hours outside Sydney, there’s the Blue Mountains World Heritage Area in New South Wales for a taste of the outdoors Australia is known for. The dense concentration of eucalyptus trees emits a mist that gives the mountains a bluish hue. Enjoy its hiking, 900-meter-high sandstone peaks and Aboriginal culture with a local Darug guide.

When planning that big Australian adventure, customers can save by booking Cebu Pacific Air’s seat sales (through www.cebupacificair.com). Starting right now, the lowest year-round fares to Sydney start at P12,150 all-in (taxes included), but can go as low as P4,999, all-in, during seat sales.

Of course, Filipinos — like most visitors to Australia — will need visas. Good news is those can usually be applied for online (www.immi.gov.au). “Filipinos still need visas, but the process is quite straightforward,” notes Reyes. Done electronically, Australian passports don’t need to be stamped. Tourist visas are available for up to three, six or 12 months. Application fees will depend on the traveler’s passport, and range from AUD130 to AUD335.

At the same time, the airline announced its nonstop flight to Kuwait.

“Cebu Pacific will be only local airline flying nonstop to Kuwait,” said Reyes. “Filipino OFWs numbers are still growing — 180,000 there. Currently, most travel involves one-stop travel. Come September, there will more choices for hard-working OFWs.”

The Kuwait service will be every Tuesday, Thursday and Sunday, 9:30 p.m. (with five-hour time difference). Fares with seat sales will go as low as P1.

Gokongwei believes the routes will become profitable in six to 18 months: “Long-haul routes in general take a long time to promote. Decisions are not made quickly, customers book six months, a year in advance. So it takes time to build up forward bookings. But generally we anticipate profitability within six to 18 months.”