Philippines' Cebu Pacific Air says Philippines industry on growth path

20 February, 2008:

Philippine carrier Cebu Pacific Air (CEB) has said that Philippines is the third fastest growing air travel market in the world, after India and Mexico.

CEB added that the domestic air travel market in Philippines boasts of a growth rate of 47 per cent in terms of passengers carried in 2007. It has been reported that the Philippines' domestic air travel market grew by 23 per cent, with almost 10.4 million travelers in 2007, compared to almost 8.5 million passengers in 2006.

The launch of low cost airlines in Philippines has provided a boost for the industry. According to analysts, domestic travel started booming when CEB introduced year-round low fares in 2005, forcing other local airlines to follow suit to be able to compete. CEB's domestic network expansion, aggressive pricing, and a good fleet had aided the market. It is expected that the growth trend will continue in 2008 and beyond. This because CEB is all set to take delivery of new aircraft.

Apart from this, the Philippine budget airline is preparing to start a direct flight between Macao and the central Philippine city of Cebu in April 2008. A report added that the Cebu-Macao flight would initially be twice a week, starting from April 5, 2008 and will expand into a four-times weekly service, from May 8, 2008.

Cebu Pacific had begun operations in 1996 and services 12, soon to be 15, international destinations .