Cebu optimistic on Australia expansion plans
Philippines-based low cost carrier Cebu Pacific is hoping to overcome bilateral challenges to expand its Australian operations after the September launch of its Sydney-Manila route, as it reported a strong response to the new service.
General manager long haul Alex Reyes revealed that sales, which opened in June, have so far performed “better than expected”.
But the main hurdle to the airline’s expansion to additional Australian support is a bilateral agreement between Australia and the Philippines which caps the route at 6,000 weekly seats. Philippine Airlines holds 4000 of those. The Malaysia route, in comparison, has 38,000 seats, he added.
However, the airline has approached the Philippines government and asked it to renegotiate the terms of the agreement with Australia.
“The request has been received favourably,” Reyes revealed. But he stressed that a schedule that suits both sides must be achieved before progress can be made.
Meanwhile, Reyes revealed that the Australian trade has also responded well to the new service, despite the airline’s no commission offer.
“We would work with the trade, we do sign up agents. Our sales manager is working on the relationships with travel agents here.”
In the Philippines, the travel trade accounts for around one quarter of overall sales with the rest going direct, Reyes revealed.
However, he stressed that it was too early to ascertain how significant the Australian trade would be in its distribution chain.
Reyes insisted the airline’s aim is not to take market share from the national carrier, instead growing the market through its offer of low fares.
“We always say if we enter a market and all we do is take market share from incumbents, then we should not be in that market,” he said.
“We’re all about stimulating traffic flows.”
Meanwhile, he highlighted the benefits of its new 4-strong A330 fleet as a 30 inch seat pitch and inflight wifi.
It currently has four A330s with that number expected to rise to six by the first quarter of 2015.
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