Cebu Pacific Air, Inc., operating as Cebu Pacific (PSE:CEB), is a Philippine low-cost airline based on the grounds of Mactan–Cebu International Airport (Terminal 2), Lapu-Lapu City, Metro Cebu, Philippines. Founded in 1988,[2] it is Asia's oldest low-cost airline.[6] It offers scheduled flights to both domestic and international destinations. Its main hubs are Cebu and Manila, with focus cities at Cagayan de Oro,[7]Clark, Davao,[8]Iloilo,[9]Kalibo,[10] and Zamboanga.[11]
The airline is a subsidiary of JG Summit Holdings. Cebu Pacific is currently headed by Lance Gokongwei, presumptive heir of John Gokongwei, the chairman emeritus of JG Summit. As of January 2013, the company has 3,297 employees. 2,565 were from operations, 429 from the commercial departments, and 303 from the support departments.[12] In October 2010, the airline completed an IPO of 30.4% of outstanding shares.[13]
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.[14][15]
History
Foundation and growth (1988–2006)
The airline was established on August 26, 1988 and started operations on March 8, 1996. Republic Act No. 7151, which grants a legislative franchise to Cebu Air, Inc. to operate was approved on August 30, 1991.[16] Cebu Air, Inc. was subsequently acquired by JG Summit Holdings (owned by John Gokongwei). Domestic services commenced following market deregulation by the Philippine government. 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.[8] 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.[17] On March 1, 2002, it commenced thrice-weekly flights to Seoul.[18] 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.[19]
The airline resumed its Manila-to-Singapore flights on August 31, 2006[20] 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,[21] 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.[22]
In December 2006, after a month of operating the new direct flights, Cebu Pacific announced that it would increase flight frequency for its Cebu-Hong Kong-Cebu from four times to five times weekly and Cebu-Singapore-Cebu flights from four times to six weekly effective January 25, 2007. As of January 2008, it operates regional flights to Hong Kong, Singapore and Seoul-Incheon beginning April 6, 2008, from its Cebu hub; and Bangkok, Guangzhou, Hong Kong, Jakarta, Beijing, Kuala Lumpur, Macau, Singapore, Taipei, Seoul-Incheon, Shanghai and Xiamen from Manila.
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.[23] Cebu Pacific now operates routes from Clark to Cebu, Davao, Hong Kong, Macau, Singapore and Tokyo.[24]
Expansion and re-branding (2007–present)
In June 2007, Cebu Pacific announced an order of up to 14 brand-new ATR 72-500 aircraft, with six firm orders and eight options. It plans to initially offer flights to Boracay, using Boracay's Godofredo P. Ramos Airport.[25] 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.[26] 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.[27] On December 18, 2007, Cebu Pacific announced that it would exercise options on its recent ATR 72-500 turboprop order (initially six firm) to increase its firm order to 10.[28]
Cebu Pacific Air Airbus A320 wearing the 2005–2016 livery
On February 19, 2008, Cebu Pacific Air received its first brand-new ATR 72-500 and expected to take delivery of another five ATRs from March to December 2008.[29] The initial two ATRs fly on routes such as Cebu to Bacolod. Cebu Pacific took delivery of its 16th brand-new, 179-seater Airbus A320 aircraft on March 20, 2008. The new aircraft was to support CEB's expanding international and domestic operations which include flights to 12, soon to be 15, international destinations.[30] 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, up 57.4 per cent from 2006[31] On July 22, 2008, Cebu Pacific was the first airline to use the new Terminal 3 of the Ninoy Aquino International Airport with its flight to Caticlan being the first to depart at 0515 local time. On August 1, it moved its international operations to the terminal; thus, becoming the first airline to have regular international commercial flights from the new terminal.
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.[32]
On January 6, 2011, Cebu Pacific flew its 50 millionth passenger, from Manila to Beijing. The airline aimed to reach the 100-million-passengers mark in 2015.[33]
In June 2011, Cebu Pacific signed a memorandum of understanding for 30 Airbus A321neos includes nine leased that will help the airline's growth and development. It will fly to Southeast Asia including cities in Japan and Indonesia. The deal was finalized in August 2011,[34] with deliveries commencing in 2017. However, due to problems with the Pratt & Whitney engines, the deliveries were delayed.[35]
A Cebu Pacific Airbus A330-300, the airline received its first A330 in 2013
Cebu Pacific is planning to commence international long-haul flights to the Middle-East, the United States, Australia, and some parts of Europe using the Airbus A330-300.[36] The first long-haul flight commenced to Dubai, United Arab Emirates on October 7, 2013.[37] Cebu Pacific is also applying for rights for a daily service to Auckland, New Zealand.[38]
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.[39] The airline received its first Airbus A320 painted in the new livery on January 22, 2016.[40]
The airline through its subsidiary Cebgo launched flights to Basco, Batanes from March 27 to October 27, 2018.[41] On August 14 of the same year, the airline commenced thrice-weekly flights to Melbourne, Australia.[42]
On June 18, 2019, during the 2019 Paris Air Show, Cebu Pacific signed a memorandum of understanding for 16 A330neos, 10 A321XLRs and 5 A320neos. It will be one of the few launch carriers of the newly launched A321XLR.[43][44]
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,[45] and sent many aircraft to indefinite storage.[46] As travel demand recovers, it started rehiring retrenched employees in November 2021[45] 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.[47]
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.[48]
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.
The airline previously operated a combined fleet of jet and turboprop aircraft. In July 2015, Cebu Pacific announced plans to consolidate its operations to a fleet of jet aircraft while transferring its ATR 72-500 turboprop aircraft to Cebgo.[57] 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.[58]
Fleet development
Airbus A320
In 2003, Cebu Pacific ordered 15 A320s to replace the Boeing 757 and to become an all-Airbus customer. Until in 2007, Cebu Pacific adds additional orders up to seven A320s to expand domestic and international route networks.[59]
The airline received its first A320 in 2005, while the airline received its new 188-seater A320neo in 2019. In June 2019, Cebu Pacific announced an order for an additional 5 Airbus A320neo, to replace the older Airbus A320-200.[43]
The A320 fleet currently flies to domestic and international regional destinations in Southeast Asia and East Asia.
Airbus A321
Airbus A321neo in the current livery
In June 2011, the airline announced that it was purchasing 30 Airbus A321neos and seven Airbus A320s for $3.8 billion, allowing it to more than double its fleet by 2021 and expand its international routes. The airline also took 10 additional options for the A321neos. Previous outstanding orders for 18 A320s to be delivered through 2014 brought the total Airbus order to 55.[60]
In 2017, Cebu Pacific was supposed to receive the first batch of A321neos but agreed to postpone the deliveries while problems of the Pratt and Whitney PW1100G-JM engines that was supposed to power the A321neo.[35] Instead, the airline ordered seven A321ceos to meet ongoing strong growth on its domestic and regional network.[61]
The first 230-seater A321ceo (RP-C4111) was delivered in March 2018.[62] In January 2019, the airline received their first-ever 236-seater A321neo, registered as RP-C4118 and powered with Pratt and Whitney engines.[63] Like the A320, the A321 currently flies to domestic and international destinations.[62]
Airbus A330
An Airbus A330-900
In 2007, the airline ordered six A330s 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.
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.[64]
On November 28, 2021, Cebu Pacific received their first Airbus A330-900, registered as RP-C3900. It is equipped with 459 seats in an all-economy configuration.[67][68]
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.[69] 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.[70] Cebu Pacific is also currently the only Philippine carrier which is a member of an airline alliance.
Accidents and incidents
On February 2, 1998, Cebu Pacific Flight 387, a McDonnell Douglas DC-9-30 flying from Manila to Cagayan de Oro, crashed on the slopes of Mount Sumagaya in Misamis Oriental, killing all 104 people on board during its approach to Lumbia Airport.[71]
On July 28, 2010, Cebu Pacific Flight 509, an ATR 72-500, bounced while landing at Manila after a flight from Tuguegarao Airport. The pilots performed a go-around and discovered that they could not retract the landing gear. The plane made a priority landing on runway 13. The aircraft (RP-C7254) was declared a hull loss.[72]
On June 2, 2013, Cebu Pacific Flight 971, an Airbus A320-200 registered as RP-C3266 and carrying 165 passengers inbound from Manila, ran off the runway at Francisco Bangoy International Airport and investigators have found the cause was likely human error. There were no fatalities; however, the plane was heavily damaged, and passengers suffered injuries.[73] However, in 2014, the plane returned to service, after six months of repairs and maintenance checks.
On August 4, 2017, Cebu Pacific Flight 570, an Airbus A330-300 registered as RP-C3341, due to a nosegear fault, went off the runway stopping on soft ground while taxiing for departure at Mactan–Cebu International Airport. There were no injuries. However, the aircraft incurred minor damage. The runway was closed until the aircraft was moved back on to a paved surface. It was rated as an Incident by CAAP and is under investigation.[74]
On October 13, 2017, Cebu Pacific Flight 461, an Airbus A320-200 registered as RP-C3237, veered to the side of Iloilo International Airport's runway after landing. The captain then initiated an evacuation. One of the passengers described the landing as "horrifying."[75]
On April 23, 2018, Cebu Pacific Flight 849, an Airbus A320-200 registered as RP-C4105, flew from Manila to Zamboanga with 172 people on board, safely landed on Zamboanga's runway and was about to turn around at the turning pad at the end of the runway when the flight crew stopped the maneuver due to a nose gear steering fault. The entire airport was closed for about three hours until the aircraft could be moved to the apron.[76]
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